Chart: Happy Labor Day! (If you’re a CEO)

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


Just in time for Labor Day, here’s a handy illustration of how labor is getting shafted by Corporate America:

Source: Jared Bernstein, Center for Budget and Policy PrioritiesSource: Jared Bernstein, Center for Budget and Policy Priorities

The red line is the share of the economy taken up by wages, salaries etc. The blue line is the share taken up by corporate profits. So the graph shows that corporations have bounced back from the recession even as workers’ share of the economic pie continues to narrow.

Why is this happening? Jared Bernstein of the Center for Budget and Policy Priorities, who put together the graph, says companies have raked in the dough by selling into emerging markets while cutting costs through outsourcing and automating domestic jobs. I’d say the demise of unions certainly also plays a role.

As the chart also makes clear, widening income inequality in America is no longer just a matter of stratified wages. Today’s investment class—the CEOs, the hedge fund managers, the bankers—owns a stake in an economic system that no longer needs to share much of its wealth with anyone else. In other words, it takes money to make money. And of course, spending some of it to buy off Washington doesn’t hurt either.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate