Post #7692 by Captkerosene on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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Sure there is!
The cycle can continue a bit longer, but the trend can not continue indefinitely. If the profits keep going up and the wages keep going down as fractions of GDP, at some point people would be paying their employers to go to work. You'd probably have very widespread strikes and social upheaval even in the US long long before that.

Besides, the US labour share of GDP hasn't fallen as much as some people think. It fell from 61.7% to 60.4% in the ~2 decades 2004-2020, not exactly a crash. The rise in corporate profitability as a share of the pie came more at the expense of the government (falling taxes) and bondholders (lower interest) than from crushing the workers.

Human labor is quickly becoming the equivalent of the horse in a world full of tractors.

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