Wednesday, June 15, 2011

Labor’s Share of National Income Sharply Declines; David Frum Wants to Ask Republican Candidates if This is a Problem.

Who is David Frum and Why Is He Asking Questions?

The answer is that Mr. Frum is a former Bush Administration official whose mission is

dedicated to the modernization and renewal of the Republican party and the conservative movement.

Which the Dismal Political Economist thinks is a worthy goal,

 On his blog he posts a graph of the index of labor's share of national income, the index being set to 2005 equals 100. 

Incredible Shrinking Workers’ Income

fedgraph1 Incredible Shrinking Workers Income

He then has two questions for the Republican presidential candidates:

1) Is this a problem?

2) If yes, what can be done about it?

The expected answer from Republican Candidates:

“No it is not a problem, in fact I and everyone I know is doing fine.  If it is a problem tax cuts for the wealthy and lower government spending on the low and middle income groups will fix it, in fact they can fix any problem, cure cancer and get the Cubs in the World Series.”

 (thanks to Tyler Cowen for the Link)

No comments:

Post a Comment