David Ruccio — Their beautiful recovery

Does anyone really need any additional evidence of the lopsided nature of the current recovery?

Employers certainly don’t. They’re managing to hire additional workers, thus lowering the unemployment rate. But they don’t have to pay the workers they hire much more than they were getting before, with wages barely staying ahead of the rate of inflation. As a result, corporate profits continue to grow.

Clearly, what we’re seeing remains a one-sided recovery: employers are getting ahead—and their workers are still being left behind....

Capital (ownership) share increasing over labor (workers) share.

Occasional Links & Commentary
Their beautiful recovery
David F. Ruccio | Professor of Economics, University of Notre Dame

See also

Graph.

Real-World Economics Review Blog
Ratio between CEOs and average workers in world by country

Editor

See also

The FRED Blog
Human capital around the globe : How to measure the human input in GDP

Noah Smith — Why Workers Are Losing to Capitalists

Back in April, I wrote about one of the most troubling mysteries in economics, the falling labor share. Less of the income the economy produces is going to people who work, and more is going to people who own things....

Mystery to morons conventional economists maybe.

Here, Noah, read this: Michal Kalecki, "Political Aspects of Full Employment" (Political Quarterly, 1943). It's even posted at Brad DeLong's site.

It's a feature of capitalism, or a bug, depending on which side one is on. The so-called labor market is rigged in favor of ownership (capital) under capitalism. Capitalism is the economic system that favors capital (ownership) and is naturally suited for oligarchy of the plutocratic sort.

No mystery at all for those not living in ivory towers.

Bloomberg View
Why Workers Are Losing to Capitalists

Noah Smith