What is the Matter With the Labor Market?

Labor's share of the economy has rarely been lower- what is going on? We will start with a graph of share of income, to labor, vs capital. Note that labor here includes all the highly paid executives- all those fat salaries. The share has been going down for decades, while the profit and capital share has been going up. The seventies were the high-water mark, when unions reached their apogee, and…