The inefficiency of income distribution in the United States

Income distribution in the United States has shifted sharply in favour of profits and away from wage earners since 1998 . The increase in profitability (in profit margin s ) has not led to a sharp rise in the investment rate, even if we consider companies' R&D spending as investment, but to a sharp rise in earnings distributed to companies' shareholders. The United States could have grown even more: If it had distributed more income to wage earners; Or if it had used the increase in corporate profitability to finance additional investment.