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

Tyler Durden's picture

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.

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jaffi's picture

Unions and bankers are no different, they both seek to gain the reins of government to fleece the rest of us.  Though, it would be interesting if the bankers announced that they were going to form the "Bankers Brotherhood Union of North America", or something of the sort.  What do you think the other unions would say?  

Obviously, the people have to pay for the losses of GM.  GM is primarily owned by the UAW, after Obama made sure to screw all of the initial investors.  Today, GM is $14 billion in the hole,,,,  Guess who's tap is running to ill that gap (hint:  it isn't Santa Claus or the Easter Bunny).  Yep, it is us.....

ISEEIT's picture

So that is pretty funny ( and smart). I signed back in and was offended by the pathetic stupidity of your troll post. Offended as I was, I went to 'junk' it for a second time and discovered that we now have 'zombies' on ZH. The more you junk 'em the more death proof they become.

Actually a great idea. One junk per LEGAL voter is consistent.

I respect that.

gmrpeabody's picture

Typically, Idiot, after a post like that, you should give the readers ..

a)  <SARC>  or...

b)  ;- )

otherwise, there is the tendency to get junked. A lot.




Chuck Walla's picture

So you mean Obama and many Democrats don't openly work for the Unions?  Andy Stern and Richard Trumpka having been to this current White House many times. The Democrats launder billions of dollars through public unions for their campaigns and the organized have no voice?

PaperBear's picture

Silent dancing at the TJ memorial in DC tomorrow as a challenge to the restriction of free speech.

NotApplicable's picture

Oh boy, this should be fun. Body-slams for everyone!

Bay of Pigs's picture

I wonder if the cops just left everyone alone what would happen.

My guess is absolutely nothing, which is why they will threaten people, then crack some heads and arrest those who dare to stand up for their 1st Amendment rights.

Great situation we got going on here in the USA.

sixmil's picture

Clearly, we need to lower tariffs and import more labor.

spinone's picture

Guess we successfully transitioned to a service economy. Bullish!

Caviar Emptor's picture

Yes: we're serving each other burgers, and we'll soon be doing each other's laundry

NotApplicable's picture

My only hope is for a non-surly ass-wiper. Then again, I don't know if I want a "whistle while you work" type either.

GoinFawr's picture

hahahaha... totally caught me off guard that! Thanks.

Reese Bobby's picture

"Do I want fries with that?"

Vendetta's picture

burger flipping are  'manufacturing' in the 'new' economy  .. go usa go usa

Breaker's picture

It's worse than that. Where are transfer payments--in worker's share or capital's? Where is government employment? I suspect both are in worker's share.

In recent years, transfer payments have skyrocketed and government employment has too. So that means the portion of GDP earned by productive workers has fallen even further.

Live_Free's picture

Wealth effect

No wait

Trickle down.

Final answer.

TheGoodDoctor's picture

Yeah trickle down your ass crack when they are done.

Caviar Emptor's picture

I call it the Trickle Me! Economy

Caviar Emptor's picture

Yup: the sheeple are supposed to go around to the rich people and say Trickle Me! 

Quixotic_Not's picture

Buh bye middle class 'MeriKa, we hardly knew ye...

IdioTsincracY's picture

Our society values casino-style investment, but not labor!

No people are going to say that it is just a function of the market ... and they are the same people who say that the market is rigged!

Go figure!!

Caviar Emptor's picture

We like de night life, baby! 

The day stuff not so much

ISEEIT's picture

Go away cockold. Your fetish ought to be kept private.

Quixotic_Not's picture

Welcome to the New Feudalism...

Couldn't happen to a more sorry ass bunch of twits!

¿Tienes puta plata?

Mach1513's picture

Post-modern deconstructed feudalism....

IdioTsincracY's picture

Nope.... that was reagan and his 'trickle Down' bullshit!!

Cheesy Bastard's picture

LOL. Dude, Reagan has been out of office for over 20 years.  Heck, he's been dead for 7. 

IdioTsincracY's picture

Yeah ... but his legacy is still alive .....

What is the plan out there?!?! .....

Simple ... it's the Trickle Down BULLSHIT

Look at the chart, dude .... see what happens after the 'fabulous' 80s .... that Reagan was a genious!!!

or maybe a Hollywood operative .... placed there to start a legacy of disgrace....

Wow ... who knew?!?!

Cheesy Bastard's picture

It is time for Barry and his statist minions to take responsibility, something they have never tried before.  Look on the chart where we are right now.

IdioTsincracY's picture

The wonders of Tax Cuts magic:

... then Save us, Save Us!!! ..... PLEAAAAAAAASE!!

Yep .... that was Obama ... right there ....

BTW: Fuck Obama too!! .... but he came in when it was too late!! ..... Georgie was the all-time best!

Cheesy Bastard's picture

Not gonna get sucked into the red team/blue team game.  Really, though, 3 minutes of Cramer emoting proves your point?  No.

IdioTsincracY's picture

Of course it was just Cramer pleading for help ....

Cheesy Bastard's picture

Something about the consent of the governed.  (Still not playing Red v. Blue)

IdioTsincracY's picture

Not playing color games either ....

but the chart says it all ....

with the birth of Reaganomics all hell broke loose ...

with the exception of the period, it's a straight down line from the 80s ...

and they still preach tax cuts for the rich and wealth cut for the middle class ....

based on the past 30 years, I say ... awesome!!

nmewn's picture

"and they still preach tax cuts for the rich and wealth cut for the middle class ...."

Ok...define rich.

Furthermore, explain how increasing taxes on anyone would result in the statists not just spending the increase and more as they always have.

Edit: I'm waiting...>>>define rich<<<.

Spastica Rex's picture

"Rich" is like "pornography."

nmewn's picture

They prefer to hold the camera and make screaming, oooh & ahhh sounds.

Poor hapless fluffers ;-)

Cheesy Bastard's picture

Lol. These statist trolls definitely belong to the fluffers union.  Hey Hey Ho ho flaccidity has got to go.

Antarctico's picture

Poor hapless fluffers ;-)

Pity poor Mr. Floppy who just can't get more than a chubby on camera and is doomed to never be a featured player, forever dry humping one of the background hoes. ;D

blunderdog's picture

Third time, 'cause apparently you're slow on this:

"Rich" is the person whose standard of living cannot be affected by whether or not he WORKS.

This is what "rich" has ALWAYS meant.  You need to back away from the misguided concept that there's some kind of numeric definition: that's totally not how it works.

nmewn's picture

So, this actually leaves out the so-called 250k crowd and all that political blather about them being the "rich"?

Thanks for the update blunderdog, I guess its all fucking blue skies now.

blunderdog's picture

Name the speaker: Politics is the entertainment branch of the military-industrial complex.

Wake up and start paying attention to what matters.  It certainly ain't those clowns in Congress and the White House.

As to whether it's all blue skies, hey: the sun will shine and the grass will grow even as the cancer eats your brain and bowels.

Ahmeexnal's picture

Under your definition of Rich, a homeless junkie and an old baglady are fuckin billionaires!

blunderdog's picture

You're really not thinking it through.

nmewn's picture

I'm wide ass awake and over being shocked.

Those clowns in the WH & Senate were put there for one reason and one reason only, to take from the productive to give to the unproductive. 

The government giving a loan to Fiat to help pay for Chrysler is a shell game, this is twice now Chrysler has pillaged the public Treasury (Lee Iacocca). Taxpayer subsidized windmills, yeah, that's the ticket...centuries old technology for a modern problem, plug a Prius into that Van Jones...LOL...Pelosi and her husband up to their eyeballs in it. Openly lie to the public on "shovel ready jobs" which is and was nothing but a federal government grant to government workers at the state level. Here's an idea, lets pass a law to reign in financial criminals led by their crony's...Dodd-Frank. Here's another one for you Doc, let's change the entire healthcare insurance system, by law, for 90% of the people in order to cover the 10% who don't even want it or can't afford it, fantastic.

But a hyper-active democracy combined with crony capitalism (which is fascism) has its drawbacks doesn't it?

"the sun will shine and the grass will grow even as" you look at the world through rose colored glasses blunderdog, calling the the sky pink and the grass blue...I'm more about cutting the cancer out of the body instead of letting it grow uninhibited.

blunderdog's picture

Yeah, hating Democrats is a huge help.  I thought you were going to be able to learn better, but it appears not.

nmewn's picture

"Yeah, hating Democrats is a huge help." 

I used to be a Democrat. These people are not Democrats.

"I thought you were going to be able to learn better, but it appears not."

I'm supposed to be humbled right there right? Oddly I'm not.

By calling it as I see it?...a train wreck, that is in fact, a train wreck?  I thought you would have learned better as well instead of clinging to what is clearly not working nor has ever worked. So, you advocate sitting on your hands and watching the grass grow...fine.

Don't ask to borrow my lawnmower ;-)