Economists are very worried about the decline in labor’s share of U.S. national income. One reason they’re concerned is because when less of an economy’s wealth flows to workers, it exacerbates inequality and increases the risk of social instability. But another reason is that this trend throws a wrench in economists’ models. For decades, macroeconomic models assumed that labor and capital took home roughly constant portions of output — labor got just a bit less than two-thirds of the pie, capital slightly more than one-third. Nowadays it’s more like 60-40.
– The Washington Post
Forget diets, fitness and employee wellness programs. U.S. firms may find shorter workdays are the way to cutting healthcare costs. At least, that’s one suggestion from a controversial experiment in Scandinavia.
States had a cheaper option for investing in infrastructure, but they didn’t take it. Financing for new projects between 2011 and 2015 cost half as much as during the previous decade. Rather than taking advantage of this opportunity, though, states retrenched. Now, they must pay the price.
– The New York Times
In an interview with the New York Times Magazine, Mark Zuckerberg acknowledges the dangerous side of the social revolution he helped to start. But, is the most powerful tool for connection in human history capable of adapting to the world it created?