Workers' share of America's income is at a record low

Friday, September 04, 2026

he AI productivity boom will soon make America richer, say the two leaders of the American economy -- Treasury Secretary Scott Bessent and Federal Reserve Chairman Kevin Warsh -- so much so that it'll be deflationary; and enough that we can forgo worrying about our $40 trillion debt even. But analysts are starting to wonder: richer for whom? Workers' share of U.S. income has already fallen to its lowest level on record, while corporate profit margins keep breaking records quarter by quarter.

Posted by lamplighter at 03:39 PM | 10 COMMENTS | permalink | Comment on This Entry |

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... According to Gregory Daco, the EY-Parthenon chief economist, the productivity gains that explain that divergence largely predate the AI boom. "Productivity growth protects margins, not income," Daco wrote in a note Thursday.

Economic output grew 1.7% in the second quarter, just based on 0.3% more hours. Compensation rose 2.6%, which, set against a spring and summer of oil-driven inflation, comes out to "flat to slight contraction" in real terms, Daco told Fortune in an interview.

Margins hit a record 14.9% of GDP, while the labor share fell to 52.8%, the lowest since the government started counting in 1947. Daco said that 50% isn't a floor. "As long as you continue to see concentrated gains on the capital side, and within a certain number of firms," labor's share could keep plummeting, he said. ...

#1 | Posted by LampLighter at 2026-09-04 03:41 PM | Reply

Trump Wins Again!!

They spent all their money on dumb stuff like groceries and gas... and overpriced Chinese Trump merch.

BJ alone has had to hock his wife!

#2 | Posted by Corky at 2026-09-04 08:49 PM | Reply

BJ alone has had to hock his wife!

Posted by Corky at 2026-09-04 08:49 PM | Reply

ROFLMMFAO.

#3 | Posted by LauraMohr at 2026-09-04 09:01 PM | Reply

"Workers' share of U.S. income has already fallen to its lowest level on record, while corporate profit margins keep breaking records quarter by quarter."

Admittedly, that's just the math, so there's that.

#4 | Posted by Danforth at 2026-09-04 09:11 PM | Reply

" Workers' share of U.S. income has already fallen to its lowest level on record, while corporate profit margins keep breaking records quarter by quarter."

Not a bug; a feature by design.

#5 | Posted by Danforth at 2026-09-04 09:11 PM | Reply

Trump Wins Again!!
#2 | POSTED BY CORKY

You mean Thomas Piketty's wins again.

I know people like you and DeflectionDan like to paint one side for all the ills in America. But you really should read more and look at the larger scope of things, how your systems are setup long term, that regardless of party the K is the trend line.

I mean nothing like throwing 9M men of unskilled labor into America when wages are low, or pumping the M2 Money supply to the heavens under COVID?? what did you think the outcome will be? An increase in wages?? Seriously what?? Why ... it would be an acceleration of the current trendlines.

Boomers, you people had it all, screwed the pooch for your grandkids and fellow Americans behind you.

#6 | Posted by oneironaut at 2026-09-04 09:34 PM | Reply

So, 1Nutless... what is it you don't grok about immigrants being a net economic plus for the US, and less likely to commit crimes per capita than a citizen, for at least the last several decades?

Is the stupid inherited with you?

#7 | Posted by Corky at 2026-09-04 09:49 PM | Reply

"or pumping the M2 Money supply to the heavens under COVID??"

Trump wanted a 42% higher stimulus than Biden had. And Trump is directly responsible the first two stimulus payments, as well as the ppp. Not to mention the trillions and trillions extra borrowed for tax giveaways.

Blaming Biden for inflation that would've been worse under Trump is moronic.

#8 | Posted by Danforth at 2026-09-04 09:54 PM | Reply

Warsh and Bessent will be swinging from the gallows while Onetinynut is set on fire.

#9 | Posted by LegallyYourDead at 2026-09-04 09:56 PM | Reply

@#6

Interesting chart.

Productivity growth exceeds hourly compensation growth.

So, it would seem that the benefits of that productivity growth went to the corporate profit margins, and not to the workers.

Just as the article suggests.

#10 | Posted by LampLighter at 2026-09-05 12:41 PM | Reply