Economist Matthias Binswanger questions the arguments behind the 99 per cent initiative – with a clear result.
Time and time again we hear that the share of labor income in GDP is declining. This means that the owners of capital are getting richer through their investments, while the wages of the working population are no longer keeping pace with the growth of GDP. In fact, studies since then have shown that such a development can be observed in different countries. American economists Erik Brynjolfsson and Andrew McAfee presented under the title “The Great Chapter” In the Harvard Business Review in 2015, data showed that the share of labor income in GDP has shrunk from 60 to 65 percent to nearly 55 percent since the start of the new millennium in the United States, while the share of company profits has risen 5 to 10 percent.