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"For almost six decades the US labour share hardly moved. Measured as wages’ share of net national income at factor cost and adjusted for the business cycle using my own estimates, it averaged 78.4% between 1963 and 2019, and it never left a band from 75.9% to 81.4%."
"Then it broke. In the second quarter of 2026 the adjusted labour share stood at 72.0%, almost 4 percentage points below the lowest reading in the 57 years before the pandemic."
"The adjusted profit share has gone the other way, from 12.4% at the end of 2019 to 18.8%, which is above anything recorded between 1963 and 2019. Corporate profits after tax are up 76% since the fourth quarter of 2019, while nominal GDP is up 48%."
"Some readers might be surprised that I am writing about a mostly forgotten Polish Marxist economist, Michał Kalecki (1899-1970)."
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