The percent of GDP that goes to wages fell from ~67% to 46% over the past few generations.
It is affecting everything from family formation to older folks being able to prepare for retirement. It is also creating a strong pull towards socialism.
Yet their are many “conservatives” who think cheap labor is a great thing, many on this site.
In reality its terrible on many levels. It doesn’t even help business when so many potential consumers are completely broke and can’t afford their products.
Good topic.
Imho the primary reason for the fall in real wages is the increase in kleptocracy during that period.
As government power increased the large corporations reacted by ramping up lobbyists and other “influencers” on government actors.
They had two main goals:
(1) Gain highly lucrative government contracts/subcontracts—whether military or civilian
(2) Make the rules (laws/regulations) work in their favor and harm their competitors—as well as any suppliers of goods and services (including labor).
This has been a gradual process over many decades.
The result is that the shareholders (and only a very small percentage of Americans own stock—something like 10%) were beneficiaries while everyone else in the economy was harmed.