Why Is Labor Share of GDP Rising?

The video discusses trends in labor compensation as a share of GDP, highlighting a historical decline since the 1960s, which has recently stabilized. It examines the acceleration of wages despite sub-2% GDP growth, leading to lower productivity. The shift from manufacturing to services and the impact of low investment on economic signals are explored. The video also addresses corporate margins, suggesting that higher labor costs may reduce margins unless offset by increased investment and inflation.

What factors contribute to the acceleration of real compensation per hour?

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Discuss the relationship between rising labor share and corporate profit margins.

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