The Food is Poison and the Portions are Too Small II: Krugman and Productivity Growth

Paul Krugman had an interesting column today calling attention to the rise in the profit share of income. The point is that we seem to be seeing rapid improvements in productivity growth (he cites the progress in the development of robots) that are drastically reducing the demand for labor. Yet all the gains from these improvements seem to be going to owners of capital as the labor share of output has been falling sharply.

The dsitributional issue raised by Krugman is extremely important, bo...