In which an actual economist reads me


The point being that this declining labour share of income isn\’t really true in the US either.

4 thoughts on “In which an actual economist reads me”

  1. This is one of those “my eyes are funny” things, isn’t it? They say the Gomme-Rupert measure appears to be fluctuating around its mean. It’s certainly fluctuating, but if I were to fit a trend line to that I reckon it would slope downwards from 1980, just not as steeply as the other measures.

  2. Sorry, I accidentally started from 1970, not 1980. From 1970, the Gomme-Rupert slopes downwards like all the others. From 1980 it doesn’t. That is because in the 1980s it fell more quickly than any of the other measures. So where you start on this chart determines whether or not the labour share of income appears to be declining.

    For the record, I don’t think 1980 is a good start point – it was a recession. But arguably 1970 isn’t a good start point either – it was the height of union power and high wage demands.

  3. I’m not doing very well, am I? I mean in the 1970s the Gomme-Rupert fell more quickly than the others, of course…..

    I’m officially off sick today (bad cold). Think my brain isn’t working properly.

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