Finding 4 is a must-read:
> Finding 4: Labor vs. capital share: The pie will grow, but a larger share might go to capital
> Today, of each dollar the economy produces, about 60¢ goes to workers and 40¢ go to capital.
Modest scenario: 40.6% to capital in 2030 (labor share down 0.6 points)
Substantial scenario: 43.9% to capital in 2030 (labor share down 3.9 points)
Extreme scenario: 54.8% to capital in 2030 (labor share down 14.8 points)
So all the growth goes to capital. For knowledge workers: substantial unemployment and declining wages. For other workers: wages may increase on paper, but not really for actual purchasing power. (note: all of their estimates are for 2030, not for a distant future)
Very dystopic indeed.
> Finding 4: Labor vs. capital share: The pie will grow, but a larger share might go to capital
> Today, of each dollar the economy produces, about 60¢ goes to workers and 40¢ go to capital.
Modest scenario: 40.6% to capital in 2030 (labor share down 0.6 points)
Substantial scenario: 43.9% to capital in 2030 (labor share down 3.9 points)
Extreme scenario: 54.8% to capital in 2030 (labor share down 14.8 points)
So all the growth goes to capital. For knowledge workers: substantial unemployment and declining wages. For other workers: wages may increase on paper, but not really for actual purchasing power. (note: all of their estimates are for 2030, not for a distant future)
Very dystopic indeed.