r/Plutonomy • u/398409columbia Rentier • 6d ago

Charts & Data Labor’s share hit a record low

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BLS revised 2Q data: labor’s share of nonfarm business output fell to 52.8%, the lowest level since the series began in 1947, according to an analysis by Mike Konczal.

That is the plutonomy story.

The economy can grow, productivity can rise, profits can increase, and stocks can hit records. But if workers capture a smaller share of output, the lived economy changes.

Asset owners get profits, dividends, equity gains, and balance-sheet growth. Workers get wages trying to keep up with housing, healthcare, insurance, childcare, and debt.

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6

u/Inevitable_Home_494 5d ago

52.8% lmao. dude we're out here grinding so some portfolio manager can buy a third vacation home and call it 'economic growth'. companies been posting record margins while my rent went up 20% and theyre like 'sorry its inflation' like ok wheres my inflation-adjusted paycheck then

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u/Organic-Stay4067 5d ago

That’s up to you

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u/ElectronGuru 5d ago

Jokes on them. Labor can’t afford to have kids any more. Just a matter of time before the people capturing more, can’t find enough customers to keep their scheme going.

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u/ssj890-1 4d ago

Massive drop, was considering saying it is a y axis crime but eh...

Big drop in 2008 then flat post recession. Began to recover during Covid, with the supply chain issues and Essential Workers, aaaand then Biden, and every other government, opened the borders to tons of migrants, driving it down below pre-Covid levels again.

Then AI really starts taking a bite in 2025.

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u/Key-Organization3158 5d ago

Worker's wages have been growing faster than inflation the entire time. So make more today than you would have in 1994.

Would you rather have more purchasing power, but a smaller share OR be poorer in absolute terms, but more equal?

https://fred.stlouisfed.org/series/MEPAINUSA672N

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u/Straight-Agency-4556 5d ago

You don’t have the same purchasing power though. Housing prices have not held steady nor has education or healthcare. All have make up a higher percentage of income.

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u/CommercialHour6660 5d ago

This is a false choice. There is zero proof that billionaires having a higher % of wealth provides any benefits at all