Who Is Our Economy For?

What does rising productivity mean to you? A commenter named Lawrence Krubner left this excellent comment at Brad DeLong’s weblog:

When unions are strong labor gets more of productivity gains than capital. When unions are weak, capital gets more of productivity gains than labor. When markets are competitive consumers get the majority of productivity gains. When markets are monopolistic the majority of the gains go to labor or capital, depending on the strength of the unions.

Saying unions are weak now would be an understatement.