Wednesday, September 24, 2025

National Income: Paying Work, Not Capital

 https://democracyjournal.org/magazine/29/national-income-paying-work-not-capital/

 In this article, Bruce Bartlett states that a smaller share of national income is flowing to labor, but larger shares are going to capital. The problem with this is that inequality will continue to grow and consumer demand will decrease because workers drive consumption. In order to correct this problem, Bartlett believes that a tax reform that re-balances support towards labor will help this problem. One example of re-balancing, would be to allow for more deductions for worker-related expenses. Bartlett doesn't believe that this solution will gain any traction in the current political climate. 

This article reiterates that problems with wealth inequality and the diminishing middle class. Too much income is going to the capital owners, not into increased wages. I think given the current political climate, we need more ideas to correct the problems, that may actually pass through as policy. 

1 comment:

  1. I agree with your opinion but another thing is the middle class is most likely shrinking due to wages not keeping up

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