David Cay Johnston has written an other powerful article for the National Memo, in the USA, this week. As he notes:
Powerful new data shows just how badly American workers are faring in the 21st Century, as corporate profits soar ever higher.
Labor and capital share in the nation’s economic output, but an awful trend line for working people appears in data released Wednesday night by the Federal Reserve Bank in St. Louis.
The data looks like this:
Labour share is falling rapidly.
And he matches this with data on US corporate profits from the same source:
So labour share is falling and profit share is rising dramatically, despite and maybe because of the recession and the chance it has created to impose austerity and wage cuts.
Howard Reed for the TUC has shown the same trend in the UK.
Please don't argue that inequality is falling as a result - especially when top rates of tax are being cut for the richest and companies at the same time - especially in the UK. That's just not credible. It's just not true.
But the real question is - who, apart from unions, is doing anything about this?