Wednesday, September 9, 2026

The Decline in the Labor Share of Income


The Record Divide Between Corporate Profits and Worker Pay
https://www.wsj.com/finance/stocks/the-record-divide-between-corporate-profits-and-worker-pay-ea4c75bc
Labor’s share of economic output just hit an all-time low, while the profit share neared a record. It helps explain why consumers feel so glum. 

The Big Money in Today’s Economy Is Going to Capital, Not Labor 
Soaring profits and stocks funnel more of GDP toward companies, their top employees and shareholders. AI will intensify this trend.


‘We deserve more’: US workers’ share of the pie dwindles
https://www.theguardian.com/us-news/article/2024/may/06/workers-income-labor-
 
“Perspectives on the Labor Share,” by Loukas Karabarbounis
https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.38.2.107
As of 2022, the share of US income accruing to labor is at its lowest level since the Great Depression. Updating previous studies with more recent observations, I document the continuing decline of the labor share for the United States, other countries, and various industries. I discuss how changes in technology and product, labor, and capital markets affect the trend of the labor share. I also examine its relationship with other macroeconomic trends, such as rising markups, higher concentration of economic activity, and globalization. I conclude by offering some perspectives on the economic and policy implications of the labor share decline.

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Public Sentiment

Six Charts That Explain How Americans Really Feel About the Economy
https://www.wsj.com/economy/consumers/six-charts-that-explain-how-americans-really-feel-about-the-economy-2243d7da
Official data shows steady growth and low unemployment, but misses how rising costs have left many Americans behind. 

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BRICS at 20

The BRICS at 20
https://www.project-syndicate.org/commentary/20-years-of-brics-has-reshaped-international-affairs-by-brahma-chellaney-2026-09
If the promise of the BRICS was to establish a monetary union, a single market, or a tightly integrated political alliance, it has not been fulfilled. But if it was to build a platform for emerging economies to cooperate while advancing their own strategic autonomy, the BRICS has exceeded expectations.
 
World’s biggest relationship? Xi and Modi look to rebuild ties for 2.8bn people
https://www.ft.com/content/6525cf15-0cf0-4fff-a3a4-298a41569d97
Brics summit expected to bring China’s leader to India for first time in seven years after cautious diplomacy to put bilateral relations back on track. 

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Tuesday, September 8, 2026

PISA 2025 Scores

U.S. Reading Scores Plummet on Global Exam
https://www.nytimes.com/2026/09/08/us/us-reading-test-scores-pisa.html
Students in Singapore and parts of China had the highest scores on the test known as PISA. Scores for American students were near a 25-year low.

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Monday, September 7, 2026

Deciphering the Stock Market

Institutional Investors Move Markets. Here’s How to Read Their Signs.
https://www.wsj.com/finance/stocks/investors-move-markets-read-signs-b0f2cc95
Tracking a stock’s price range and volume can offer clues on when to buy a stock that’s about to climb or bail on a stock that’s primed to fall. 

The Stock Market’s Breezy Summer Is Over. Investors Beware.
https://www.wsj.com/finance/stocks/the-stock-markets-breezy-summer-is-over-investors-beware-fb110133
The Fed and inflation are back in focus as investors face down an often bumpy stretch for markets.
 
Why Stocks Are Defying Gravity and What Could Bring Them Down
https://www.nytimes.com/2026/09/08/business/stock-market-interest-rates.html
Investors are focused on strong corporate earnings and A.I., while looking past the war in Iran. But rising interest rates are an increasing risk to the rally.

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US Foreign Policy Blunders

Peru Shows the Limits of Washington’s Anti-China Push
https://www.nytimes.com/2026/09/07/world/americas/peru-trump-china-economy.html
 
Trump’s Neocolonialism Will Backfire
https://www.newyorker.com/news/global-notes/trumps-neocolonialism-will-backfire  
The President is touting his big Venezuelan oil deal, but his interventions abroad are stirring anger and having unintended consequences. 

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China and Medical Research

Patients Are Flying to China for the Latest Cancer Treatment
https://www.wsj.com/health/healthcare/patients-are-flying-to-china-for-the-latest-cancer-treatment-528659c3
Shanghai is emerging as a favored destination for patients from America and other rich countries who are seeking innovations in biotechnology. 

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