Capital share rising from 0.33 to 0.6 could multiply wages nearly fivefold
sudoraohacker · x · 2026-09-22
An economics thread argues that a falling labor share and rising wages are not in tension: capital supply is perfectly elastic in the long run while labor supply is inelastic, so gains from capital-amplifying technological change flow to the less elastic factor. Key figure: raising the capital share from 0.33 to 0.6 multiplies wages by nearly five.
Related event: Economists Debate Whether AI-Hit Labor Share Still Benefits Workers(4 posts)→
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