The article examines a significant shift in economic rewards observed in recent decades, particularly in light of technological advancements and the rise of artificial intelligence. It contrasts the workforce size and economic impact of IBM in 1985, which employed nearly 400,000 people and was the most profitable company in the US, with Nvidia, which boasts a market value nearly 20 times greater than IBM's when adjusted for inflation but employs only about one-tenth the number of workers. This raises concerns about the distribution of corporate profits, which have surged since the COVID-19 pandemic, primarily benefiting capital owners and shareholders, while average hourly wages for workers have only increased modestly by 3% since the end of 2019, highlighting a growing disparity between the gains of capital versus labor.

Furthermore, the piece points out the exacerbating effects of AI as more economic production is captured by capital rather than labor. Recent trends indicate a record surge in corporate profit margins while many workers face layoffs, as evidenced by the Dow Jones Industrial Average hitting an all-time high despite rising unemployment and dwindling job openings in the US. This disconnect illustrates a significant rift between optimistic economic indices and the pessimistic perceptions of the workforce relations landscape.

In examining the long-term trends, the article notes that the share of income going to labor in the overall economic output has decreased from 58% in 1980 to 51.4% by the third quarter of last year, while the company's profit share has risen sharply from 7% to 11.7%. This indicates that the decline in labor's income share is more influenced by changes in power dynamics within labor relations and the types of businesses dominating the economy rather than merely a decrease in wages for workers. Such findings call for a reevaluation of how labor and capital share the economic pie, especially as AI continues to transform the workforce landscape.