The Wall Street Journal analyzes a significant shift in the economic landscape, where financial benefits are increasingly favoring capital over labor. In the mid-1980s, IBM was the most valuable company in America, employing nearly 400,000 workers and generating substantial profits. However, today's market leader, Nvidia, is valued immensely higher than IBM but employs only about one-tenth of its workforce. This stark contrast illustrates a broader trend where capital returns are escalating, while labor compensation is diminishing.

This trend is not new but has become more prominent in recent years. Since the early 1980s, the share of income going to labor has significantly declined, while corporate profits have risen sharply. The article indicates that, out of every euro produced in the economy, a shrinking portion is allocated to wages, whereas a larger share is directed toward profits and dividends, raising concerns about income inequality and the changing nature of employment.

The implications of this shift are profound, especially in terms of economic policy and labor rights. As companies prioritize profits over workforce expansion, questions arise about the future of jobs, wages, and the sustainability of this economic model. The movement of wealth towards capital raises fundamental concerns about the structure of the economy and the potential for increased social and economic disparities in the years to come.