Share of Economy Going To Wages And Salaries Drops For Unprecedented 14th Straight Quarter; Meanwhile, Corporate Profit Share Has Risen Significantly
Publication Date: October 2004
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Economic projections; Household income; Income diversity; Tax code
The Commerce Department data released today on the nation’s Gross Domestic Product — which measures the overall size of the economy — indicate the continuation of a troubling trend for the country’s workers. The new data are for the third quarter of 2004 and show that a steadily dropping share of the nation’s income is going to wages and salaries. At the same time, data through the second quarter show that the share of GDP going to corporate profits has increased substantially. To a lesser degree, the share of GDP going to employer contributions to insurance and pensions has also risen.