Return to Labor

Another interesting chart, via nc links:

So all you economists out there, tell me why this doesn’t show what I think it does: whenever labor’s share of income rises a bit, they hold a recession. Which takes care of that problem quite nicely.

I think it is interesting that the chart peaks out in 1980, right as the "Reagan Revolution" took place.  The tech bubble is also pretty interesting.  I think the 2012 bottom is as far down as things can probably go, and we'll eventually have to move back into the 64 to 66% range.  However, productivity investments and robotics may lead us to test the feasibility of staying below that range.  I doubt that that is feasible.