Federal Reserve Bank of Boston | bostonfed.org |
What Lies Beneath the Surface
Where did the high productivity benefits go? To Profits
▶ Firms in the economy are doing
quite well
▶ Historical record-high profit rates
▶ The mirror image is that the
share of income going to
workers has been dropping for
decades
▶ We have plenty of aggregate
income and wealth
Bank Administration, 7 January 2020
Sources: Bureau of Economic Analysis, Haver analytics (profit share), BLS Monthly Labor Review, "Estimating the U.S. Labor Share", February 2017.
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