Duly Noted

This gives a very clear picture. From 2013 to just before the pandemic, the ratio of labor compensation (wages plus benefits) to consumption was mostly between 75 and 76 percent. The pandemic led to a big jump in the ratio due to a fall in wages, associated with the jump in unemployment when the economy shut down, and the big stimulus checks the government sent out in 2020 and 2021.

I guess this is another look at the K shaped economy.

_{Quote Citation: DEAN BAKER, “The AI Bubble #24,736: Consumption Is Outrunning Wages”, JAN 29, 2026, https://deanbaker22.substack.com/p/the-ai-bubble-24736-consumption-is}