Why do workers lose to the capitalists?

Workers at a factory in New Delhi

Adnan Abidi / Reuters

This is the translation of the article by Bloomberg View Noah Smith . Other Bloomberg View columns can be found at the link .

Back in April, I wrote about one of the most alarming mysteries in the economy - about the fall of the share of workers in the GDP. Less than the income produced by the economy comes to people who work, and more and more to people who possess anything.

Reducing the share of workers. The share of GDP received by workers

This trend is concerned, as it contributes to the growth of inequality - poor people own much less land and capital in the economy than rich. The depreciation of labor can also increase unemployment, social tension and general problems. No one would like capitalism to turn into the anti -utopia that Karl Marx foresaw. That is why, despite the relatively small decrease in the share of labor, economists are in a hurry to diagnose the causes of this until the problem has aggravated.

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