– Chart showing corporate profits (blue) and workers’ compensation (red) as a share of GDP, via Jared Bernstein.
“As you can see, corporate profits have not only recovered their post-recession highs, they’ve surpassed it. And compensation as a share of the economy is far lower. You can also compare how different these patterns look compared to last recession in 2001, when the income shifts were not nearly so sharp. It’s truly a picture of two very different economies, one for those who depend on their paychecks and one for those who depend on their portfolios.”
Josh Harkinson: “As the chart also makes clear, widening income inequality in America is no longer just a matter of stratified wages. Today’s investment class—the CEOs, the hedge fund managers, the bankers—owns a stake in an economic system that no longer needs to share much of its wealth with anyone else.”