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The labor share of income in the US is at its lowest post-war level

libertystreeteconomics.newyorkfed.org

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Re: The labor share of income in the US is at its lowest post-war level

#111

Post by gruez »

dozerly wrote: post #90
legitster wrote: post #61

People are misreading the conclusion - the Covid related drop is normal and matches previous episodes, but the massive overall drop since 2000 is not. The situation on the ground is unchanged - the amount of labor being generated per person has not really changed, but the overall pie has grown massively around us.

We have one of the worlds most prosperous economies, and half of the US is living in abject poverty while quality of life for everyone is decreasing.

>and half of the US is living in abject poverty

Source? All the ones I know of use questionable methodology like: "being able to afford a 2 bedroom apartment at median wage".

Re: The labor share of income in the US is at its lowest post-war level

#112

Post by vdqtp3 »

dozerly wrote: post #90
legitster wrote: post #61

People are misreading the conclusion - the Covid related drop is normal and matches previous episodes, but the massive overall drop since 2000 is not. The situation on the ground is unchanged - the amount of labor being generated per person has not really changed, but the overall pie has grown massively around us.

We have one of the worlds most prosperous economies, and half of the US is living in abject poverty while quality of life for everyone is decreasing.

> half of the US is living in abject poverty

Anyone who believes this has absolutely no concept of what abject poverty looks like.

Re: The labor share of income in the US is at its lowest post-war level

#113

Post by carlosjobim »

scrumbledober wrote: post #3

it feels like every share of income is at its lowest except for the ultra wealthy.

Not at all. The real estate share of income is probably at its highest among a lot of people who belong to the non-labouring class, but are far from ultra wealthy. But it's nice to have a scapegoat, isn't it?

Re: The labor share of income in the US is at its lowest post-war level

#114

Post by sfdlkj3jk342a »

dozerly wrote: post #90
legitster wrote: post #61

People are misreading the conclusion - the Covid related drop is normal and matches previous episodes, but the massive overall drop since 2000 is not. The situation on the ground is unchanged - the amount of labor being generated per person has not really changed, but the overall pie has grown massively around us.

We have one of the worlds most prosperous economies, and half of the US is living in abject poverty while quality of life for everyone is decreasing.

What's your definition of "abject poverty"?

I find it hard to believe that half the US would meet the criteria for any reasonable definition.

Re: The labor share of income in the US is at its lowest post-war level

#116

Post by scottyah »

lotsofpulp wrote: post #9
jagged-chisel wrote: post #5

Earlier quoted context omitted.

The annoying/sad/infuriating thing is the ultra wealthy don’t have “income.” Technically, according to IRS rules, much of what they experience (housing, food, etc) should be classified as income. But their lawyers and accountants help them keep that looking quite low.

Capital gains not being considered earned income is simply sensible use of terminology to categorize different ways of amassing purchasing power. For example, in order to carry out the linked analysis. It has nothing to do with the IRS or taxes.

Income goes straight to a person, capital gains is a little return from other people generating income. Basically a MLM lol.

Re: The labor share of income in the US is at its lowest post-war level

#117

Post by imightbebatman »

colechristensen wrote: post #97
legitster wrote: post #61

People are misreading the conclusion - the Covid related drop is normal and matches previous episodes, but the massive overall drop since 2000 is not. The situation on the ground is unchanged - the amount of labor being generated per person has not really changed, but the overall pie has grown massively around us.

It's just rent. Rent for the homes we live in (including "rent" as mortgage payments to the bank) Rent passed through as costs to the consumer for the businesses we patronize. We're stuck at home more affording to be able to do less so the people who own don't have to work.

I have a similar PoV. I think rent seeking without sufficient checks is one of the biggest problems in our economy.

But the underlying problem that people aren't paid enough is still true. Outside a few fields, most people are underpaid. It's even more stark when measured against productivity increases during the same time periods. That wealth went somewhere. It wasn't to most people.

People have a tendency to get upset when they realize these kinds of things.

Re: The labor share of income in the US is at its lowest post-war level

#118

Post by micromacrofoot »

jagged-chisel wrote: post #5
scrumbledober wrote: post #3

it feels like every share of income is at its lowest except for the ultra wealthy.

The annoying/sad/infuriating thing is the ultra wealthy don’t have “income.” Technically, according to IRS rules, much of what they experience (housing, food, etc) should be classified as income. But their lawyers and accountants help them keep that looking quite low.

even with this scam the top 1% of earners still have more annual income than ~75% of the population

Re: The labor share of income in the US is at its lowest post-war level

#119

Post by artisinal »

contagiousflow wrote: post #24
smt88 wrote: post #6

Earlier quoted context omitted.

It’s not. There are plenty of non-wealthy people who make money from things other than their labor. Small-time landlords are an example, as would be anyone who owns a small business and draws cash from profits rather than taking a salary.

> non-wealthy > landlord If you think these two things are compatible you need to talk to more people outside of your bubble.

Not American here. I know a couple of people who took out a second mortgage to buy a small appartement to rent out when mortgages rates were at 1%. They probably have €300k in equity in both the primary and secondary home. And around €600 in income from the rental. I do not consider that wealthy.

Re: The labor share of income in the US is at its lowest post-war level

#120

Post by FloorEgg »

imightbebatman wrote: post #64
loughnane wrote: post #50

Earlier quoted context omitted.

I don't think so. Opening sentence is this: > The labor share of income in the U.S. is currently at its lowest-ever level in the post-war period. Agreed on the 2000 drop though. Would be interesting to read a retrospective on that.

Is it not the dot com bubble pop?

Or the world trade center?
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