Wage Growth versus S&P 500 Profit Growth

This chart was on Axios earlier this week. I think this is could be one of the reasons for the ongoing challenge between capital and labor since the ‘Great Recession’.

Clearly the recovery in Profits of 10.1% versus Wages of 3.3% is significant. However, this is part of a much longer term trend. Whether it is due to technology or some other factor, it has made it difficult for the middle class to get ahead economically.

I gather this may at least be a partial explanation for an uptick in the idea that Socialism may be desirable versus Capitalism. This appears to be especially so for younger workers.


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