One of the most damaging economic phenomena observed in the USA in the 21st century is the decline in the labor force participation rate and the employment/population ratio as presented in this post. For the employees, this decline was also accompanied by a dramatic fall in the Share of Labor Compensation in GDP as Figure 1 shows. The long-term decline from the 1950s to the 2010s is 4%. The lost share goes to capital. The capital share has grown from 36% to 41% in 2019. It is not an exaggeration to call the 1950s-1970s a golden era.
Figure 1. Borrowed from FRED
No comments:
Post a Comment