Attention Marxists: Labor's Share Of National Income Drops To Lowest In History

Probably the most imprtant secular trend in recent employment data, one that has a far greater impact on the macroeconomic themes than Birth/Death and seasonal adjustment manipulated month to month shifts in the employment pool per either the household or establishment surveys, is the labor share of national income. In a 2004 paper from the St. Louis Fed, the authors make the following statement: "The allocation of national income between workers and the owners of capital is considered one of the more remarkably stable relationships in the  U.S. economy. As a general rule of thumb, economists often cite labor’s share of income to be about two-thirds of national income—although the exact figure is sensitive to the specific data used to calculate the ratio. Over time, this ratio has shown no clear tendency to rise or fall." It would be wonderful if this was true, and thus if the US population really had a stable distribution of income between laborers and capital owners. Alas it is dead wrong. In fact, as the latest note from David Rosenberg points out, the "labor share of national income has fallen to its lower level in modern history - down to 57.5% in the first quarter from 57.6% in the fourth quarter of last year, 57.8% a year ago, and 59.8% when the recovery began." And here is where the Marxist-Leninist party of the US should pay particular attention: "some recovery it has been - a recovery in which labor's share of the spoils has declined to unprecedented levels."

Like Rosie, Zero Hedge is not a marxist blog: quite the opposite, but like him we come to the same troubling conclusion: "extremes like this, unfortunately, never seem to lead us to a very stable place." We would go further: not only does the US already have the core elements, should one be so inclined, to provoke a (rather active) anti-fascist movement based on some interpretations of pro-corporatists policies adopted by the administration, but should another be so inclined, the country also has the groundwork in place for another neo-Marxist revolution: just take this chart, add some slogans, mix, and simmer. And who will be the natural enemy? Why only look at the great October revolution in Russia for ideas. History always rhymes.



http://www.zerohedge.com/article/attention-marxists-labors-share-national-income-drops-lowest-history

It's just the end result of a capitalist culture that doesn't think that it has to make ANY concessions to the people anymore.

The best recruiters for Marxism are the capitalists.

That would make a great bumper sticker!

:) Every now and then I can come up with a good one!

Granted where we live, we might get a few more tickets though.

they might get violent and distructive. :)

I think for 2012, we should do it again.

At least among the top 10% or so. It stops when society crashes or they are firmly reigned in.

I think when everyone has a good stake in the society, they do a better job of keeping this sort of thing in check. Right now, too many people want to be in the 1%, above the law. That kind of worship of the perverse is unhealthy.

Sorry for the bad news.

In some (primitive) cultures, it wasn't the one who owned the most crap who was looked up to, it was the one who could throw the most lavish get-together and give the most. When social status is more important than material goods, the greedy suddenly turn generous.

see the writing on the wall too.

Peace,
Tex Shelters