Tag Archives: profit share

Two Marxian economists look at rate of profit and profit share in the current context. Stumbling and MumblingWhat's behind the rising US profit shareChris Dillow | Investors Chronicle Michael Roberts BlogTrump’s profits bonanzaMichael Roberts

The two standard explanations for why labor’s share of output has fallen by 10 percent over the past 30 years are globalization (American workers are losing out to their counterparts in places like China and India) and automation (American workers are losing out to robots). Last year, however, a highly-cited Stigler Center paper by Simcha Barkai offered another explanation: an increase in markups. The capital share of GDP, which includes what companies spend on equipment like robots, is...