Commenters debated what a low wage share measures and how much reflects workers losing income versus changes in classification. One argument was that owners of small businesses and professional practices increasingly receive income as pass-through profits rather than wages, even when doing similar work; a cited study was said to explain about 31.9% of the decline. Some commenters questioned how common this arrangement is, while others pointed to LLCs and partnerships. Another noted that including employer-paid insurance, retirement contributions, and payroll taxes produces a different picture. Commenters also cautioned that GDI accounting does not divide income neatly into wages and capital returns: non-wage categories include depreciation, rental income, and business income.
On where income has gone, one commenter cited a five-percentage-point rise in after-tax corporate profits as a share of GDI since 2000, split between dividends and undistributed profits. Some saw the trend as evidence of growing inequality and concentrated economic power; others argued that capital’s share can rise as productive assets, intellectual property, and organizational capabilities accumulate. Rent and land speculation were also proposed as major contributors, alongside outsourcing, automation, and deindustrialization. Commenters disagreed over whether R&D meaningfully explains the shift, with some emphasizing university research and others pointing to tech-company investment. Several stressed that the figures alone do not establish a simple transfer of wages to shareholders.
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From August 2028, universities in England will pay £925 ($1,200) annually for each international student above an exemption threshold of 220, including current and new students. The government expects the levy to raise revenue for education, while university leaders warn it could strain finances and push up tuition fees. (africa.businessinsider.com)
The Pentagon is developing a plan for major U.S. bases to sustain essential operations independently for 90 days, including power, water, fuel, and communications. Separately, Britain is advising households to keep enough food, water, and cash for three days of disruption; officials say the efforts are not coordinated and do not signal an imminent war. (fortune.com)
“Buy, borrow and die” lets wealthy investors hold appreciating assets, borrow against them instead of selling, and pass them to heirs, who may receive a higher tax basis. The strategy can reduce capital-gains taxes while creating demand for loans secured by investments. (wsj.com)
The US fired an estimated 609 missile interceptors defending Israel from October 2023 through September 2026, including 186 SM-3s and 378 THAADs. The analysis estimates the interceptors cost $11 billion, exceeding Israel’s own use of ballistic-missile defenses. (stephensemler.com)
Microsoft is offering voluntary exits to 60,000 employees at level 70 or below in the U.S., India, Canada, and the UK. The program has prompted speculation that further layoffs are coming, but the post does not confirm that connection. (twitter.com)
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