Thursday, March 14, 2024

Employee Compensation as a Percent of GDP

Two questions:

1. Why does no one say the Biden economy is good?  One reason: As a percent of GDP, employee compensation has never been lower:

2. Is that Biden's fault?  No. Employee compensation has been all downhill for half a century. That's not Biden's fault.


Third question: What is to be done?  The first three steps in solving a problem are

  1. Correctly understand the problem.
  2. Correctly understand the cause of the problem.
  3. Correctly understand the cause of that cause.

Hint: Low employee compensation is not the problem. It's a result.


The Arthurian said...

See also: Profits have doubled since 2020.

The Arthurian said...

See also "Labor Cost and Profit since 2018"