No. of Recommendations: 4
..."the rich should have all the money".
They are getting there. (I was reminded of this by a post on METaR today)
U.S workers just took home their smallest share of capital since 1947, at least
Labor share, or the portion of the U.S.’s economic output that workers receive through salary and wages, decreased to 53.8% in the third quarter of 2025, its lowest level since the BLS started recording this data in 1947, according to its labor productivity and costs report published last week. In the previous quarter, labor share was at 54.6%. This decade, the labor share average was 55.6%.
That’s despite corporate earnings skyrocketing, with profits for Fortune 500 companies hitting a record $1.87 trillion in 2024. The U.S. GDP grew 4.3% in the third quarter last year, exceeding economists’ predictions. fortune.com - US workers smallest labor share GDP on recordAnd the trend continues into 2026. From the net sifter:
U.S. Labor Share of GDP Hits Post‑1947 Low
The U.S. labor share — the portion of GDP paid to workers as wages and benefits — fell to 52.9% in Q2 2026, the lowest since the Bureau of Labor Statistics began tracking it in 1947
According to the BLS, the labor share in Q2 2026 was 52.9% of GDP, down from 53.8% in Q3 2025 and far below the 70% level in 1947. This is the lowest point in the 78‑year series, marking a decline of roughly 16 percentage points over the period.
Historical context
In 1947, the labor share was 70%, with the rest going to profits, investment income, and other corporate claims. Over the past two decades, the share has eroded sharply, while corporate profits have risen. The Kobeissi Letter notes that since 2001, employee compensation as a share of corporate GDP has fallen about 10 percentage points, while corporate profits have nearly doubled."Rant #37" was first compiled around 2004. Rather than being disproven, subsequent events have validated it.
Steve
