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US Wages Share of GDI at 75 Year Low

116 points • by omgwtfbyobbq • today at 3:51 AM • 41 comments • view on HN

Comments

zetazzed • today at 5:00 AM

One major element in this is the rise of earnings from pass-through income. Self-employed or nearly self-employed individuals who would have been counted as employees of their small businesses 30+ years ago increasingly take "profits" from their business rather than "wages," even though they are the same thing. The "profits" get tax advantages. This makes labor share decline despite dentists, consultants, etc. still doing the same amount of work and taking home the same pretax income. See: https://www.ericzwick.com/labshare/labshare.pdf

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BLKNSLVR • today at 3:56 AM

This is purely data with no narrative attached, which is sort of refreshing.

The un-answered question is what is now eating up the percentage that was going to wages?

What are the options? R&D, shareholders, lawyers, advertising/marketing/PR, share buy-backs, political lobbying (cough bribery cough), strategic reserves?

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resters • today at 5:07 AM

<scarcasm>Wait till millions of robotaxis hit the streets, the graph will crater!</sarcasm>

beebmam • today at 4:47 AM

Does this include income like RSUs?

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v3ai • today at 5:31 AM

what happened in 1971 . com