Labor’s Share of Nonfarm Business Income Plummets

This graph of labor’s falling share of income explains a lot about the growing political discord in the middle and lower classes:

I’ve talked a lot about the need for job creation, and that is still of utmost importance. But job creation alone is not going to be enough to turn the tide of growing unhappiness with our increasingly two-tiered society.

About Mark Thoma 243 Articles

Affiliation: University of Oregon

Mark Thoma is a member of the Economics Department at the University of Oregon. He joined the UO faculty in 1987 and served as head of the Economics Department for five years. His research examines the effects that changes in monetary policy have on inflation, output, unemployment, interest rates and other macroeconomic variables with a focus on asymmetries in the response of these variables to policy changes, and on changes in the relationship between policy and the economy over time. He has also conducted research in other areas such as the relationship between the political party in power, and macroeconomic outcomes and using macroeconomic tools to predict transportation flows. He received his doctorate from Washington State University.

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