How the Fourth Revolution Visibly Changes Economic Value Creation

The share of labor and wages is declining in most countries – often to the benefit of corporate profit.

The decrease in the share of labor in the economy in some countries

In this interesting (but long) scholarly article “The Global Decline of the Labor Share�”, University of Chicago researchers show that it is a general trend due to the relative decrease of value required for capital.

In other words “the decrease in the relative price of investment goods,often attributed to advances in information technology and the computer age, induced fi�rms to shift away from labor and toward capital“.

The capital required for value creation is relatively less expensive now than it was a few decades ago (everybody can create a company with a single laptop).

This is a society issue that needs to be tackled – because this is a deep Fourth Revolution trend that won’t reverse!