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https://theconversation.com/underlying-australias-inflation-problem-is-a-historic-shift-of-income-from-workers-to-corporate-profits-200700>
"The three years since the onset of the pandemic have witnessed a dramatic
redistribution of national income, away from labour compensation and towards
business profits.
No one should be surprised. Supply-chain disruptions, pent-up consumer demand
and inflation have provided businesses with a golden opportunity to increase
their margins. Many have taken it.
The latest GDP data from the Australian Bureau of Statistics confirms that, in
the three years since December 2019, corporate gross operating profits have
risen 43.6% – more than twice the growth in wages.
As a result, the share of GDP going to corporate profits has increased by 3.6
percentage points. Conversely, labour’s share shrank by 2.3 percentage points,
despite low unemployment rates and rising nominal wages. Even hard-pressed
small businesses, personified by the friendly neighbourhood café owner, did
better.
The 29% share of national income now going to corporate profits is the highest
in Australian history – higher even than 2020 when profits were temporarily
boosted by JobKeeper payments and other business subsidies. Meanwhile, workers’
share of GDP reached its lowest point ever (just 45%).
The decline has implications for inequality and social cohesion. It is
translating into a notable decline in workers’ real living standards, and
exacerbating the rise in inflation."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
