The article presents a striking comparison between IBM in the mid-1980s, which was the most valuable company in America with nearly 400,000 employees, and Nvidia today, which, despite being worth significantly more and being much more profitable than IBM, employs less than 40,000 people. This analysis, referenced from the Wall Street Journal, underscores the fundamental shift in the modern economy where returns are increasingly directed towards capital rather than labor.

This trend is not new, but has become more pronounced in recent years, indicating a dramatic decline in the share of income going to labor versus the increase in corporate profits. From the early 1980s to today, the share of labor in the total income of the economy has plummeted, while corporate profit shares have risen, reflecting a broader socioeconomic transition.

In simpler terms, this means that out of every euro generated in the economy, a smaller portion is allocated to wages, while a larger share is funneled into profits. This shift has significant implications for wage growth, employment opportunities, and the overall economic landscape, raising questions about sustainability and equity in growth and prosperity.