Jun 6, 2019

Labor's shrinking share of profits

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Data: Federal Reserve Bank of St. Louis; Chart: Axios Visuals

Dating back to the 1940s corporate profits and labor rose and fell together, reflecting the general growth of the economy, note economists at the St. Louis Fed:

"The past decade and a half seems to be different, though. Never have corporate profits outgrown employee compensation so clearly and for so long."

What's happening: Capital Economics chief economist Neil Shearing says the change has to do with a shift in incentives for decision makers at large companies.

  • "There are a whole raft of structural shifts in the developed world over the last 30 years that have weakened the power of unions ... and basically shifted more of the share of income of labor to corporates and rather than being used for investment it's just jacked up share prices."
  • "If you get to a world of more equal distribution of labor it ... would be terrible for the stock market, but it would help to address some of the more social, distributional type issues."

Go deeper: Walmart CEO calls on Congress to increase "lagging" federal minimum wage

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Boris Johnson admitted to hospital as coronavirus symptoms persist

Photo: Ray Tang/Anadolu Agency via Getty Images

U.K. Prime Minister Boris Johnson has been admitted to the hospital for tests as a "precautionary step" as his coronavirus symptoms have continued to persist 10 days after testing positive, according to a Downing Street spokesperson.

Why it matters: Johnson was the first major elected leader to test positive for the coronavirus. He was admitted on the same day that Queen Elizabeth II gave a rare televised address to the nation, urging the British people to confront the pandemic with the same "self-discipline" and "resolve" that has defined the country in times of crisis.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 1,252,265 — Total deaths: 68,413 — Total recoveries: 258,495Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 325,185 — Total deaths: 9.267 — Total recoveries: 16,820Map.
  3. Public health latest: CDC launches national trackers and recommends face coverings in public. Federal government will cover costs of COVID-19 treatment for uninsured. Surgeon general says this week will be "our Pearl Harbor, our 9/11 moment."
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. Biden says DNC may have to hold virtual convention.
  5. States updates: New York Gov. Andrew Cuomo said the state is "literally going day-to-day" with supplies.
  6. Work update: Queen Elizabeth II urges the British people to confront pandemic with "self-discipline" and "resolve" in rare televised address.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Queen Elizabeth addresses U.K. amid coronavirus crisis: "We will meet again"

In a rare televised address on Sunday, Queen Elizabeth II urged the United Kingdom to respond to the coronavirus pandemic with the "self-discipline" and "resolve" that have defined the British people in moments of crisis.

Why it matters: It's just the fifth time that the queen, who traditionally speaks to the nation once a year on Christmas Day, has addressed the British people in this way during her 68-year reign.

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