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Illustration: Aïda Amer/Axios

Tuesday's stock market record proves the definitive triumph of capital over labor in the era of COVID-19.

Why it matters: The recession has caused the size of the American economic pie to shrink substantially. But the share of that pie going to capital rather than labor has continued to rise.

Driving the news: The S&P 500 closed at a record high of 3,390 on Tuesday, a gain of 55% from its March low point in the space of just 105 trading sessions.

The big picture: It's easy to view the stock-market rally as happening despite the fact that more than 28 million Americans are claiming unemployment benefits. But perhaps the stock market is soaring in large part because of the continued unemployment crisis.

How it works: Historically, about two thirds of economic output went to workers in exchange for their labor, with the other third being retained by owners. But since 2000, that ratio has been plunging.

  • Now that America's workforce has been decimated by the COVID-19 pandemic, the share of national income being kept by workers could hit a new record low.

The bottom line: It's unclear how or whether workers will be able to regroup and reclaim more of the fruits of their labor. So long as capital retains the upper hand, an increasing share of corporate revenues will show up as profits. Which is good news for anybody owning stocks.

Go deeper

Wall Street bets it all on a vaccine

Illustration: Eniola Odetunde/Axios

It's the time of year when Wall Street shops are rolling out predictions for where they see the stock market headed in the coming year. There's one common theme: Widespread distribution of a vaccine is the reason to be bullish.

Why it matters: Analysts say vaccines will help the economy heal, corporate profits rebound and stock market continue its upward trajectory.

Dominion sends cease and desist letter to My Pillow CEO Mike Lindell

Photo: Stephen Maturen/Getty Images

Dominion Voting Systems on Monday sent a cease and desist letter to My Pillow CEO Mike Lindell over his spread of misinformation related to the 2020 election.

Why it matters: Trump and several of his allies have pushed false conspiracy theories about the company, leading Dominion to take legal action. It's suing pro-Trump lawyer Sidney Powell for defamation and $1.3 billion in damages, and a Dominion employee has sued Trump himself, OANN and Newsmax.

Off the Rails

Episode 5: The secret CIA plan

Photo illustration: Aïda Amer, Sarah Grillo/Axios. Photo: Zach Gibson/Getty Images

Beginning on election night 2020 and continuing through his final days in office, Donald Trump unraveled and dragged America with him, to the point that his followers sacked the U.S. Capitol with two weeks left in his term. This Axios series takes you inside the collapse of a president.

Episode 5: Trump vs. Gina — The president becomes increasingly rash and devises a plan to tamper with the nation's intelligence command.

In his final weeks in office, after losing the election to Joe Biden, President Donald Trump embarked on a vengeful exit strategy that included a hasty and ill-thought-out plan to jam up CIA Director Gina Haspel by firing her top deputy and replacing him with a protege of Republican Congressman Devin Nunes.