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
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
