The Share Of Labor Compensation In GDP Has Been In A Catastrophic Decline Since 2000
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.
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