[lbo-talk] question for DanDav - or anyone else?

Doug Henwood dhenwood at panix.com
Fri May 13 14:42:25 PDT 2005


Seth Ackerman wrote:


>What's up with the declining labor share of GDP in the US? It's
>fallen by about 3% of GDP since its last peak.

If you're a bourgeois economist, you'd say it's the productivity miracle. If you're tinted pink or red, you'd say you'd say capital is strong and labor is weak. In either case, almost all the gains of economic growth have gone to profits and the very upper crust of individuals (whose incomes are mostly returns to capital).

It's pretty funny that Goldman Sachs is worried about excessively rapid employment growth, since we're still about 10 million jobs below where we'd be in a "normal" recovery/expansion.

Doug



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