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Worker share of output is declining due to residual capital income, Jack Salmon notes

Worker share of output is declining due to residual capital income, Jack Salmon notes
Decline in worker share reflects capital income

Jack Salmon argues that the decline in workers’ share of output is primarily a result of capital income acting as a residual for various factors.

He also points out that the use of BLS data to emphasize narrative themes such as declining worker welfare, billionaire gains, or broader economic injustices is not a new phenomenon.

Salmon has previously analyzed state tax policy debates, focusing on Colorado’s choice between a 4.4% flat income tax and a proposed graduated tax structure with higher marginal rates. In his article on the Colorado income tax debate, he detailed the competing plans facing voters. These topics reflect ongoing economic discussions in his recent commentary.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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