The skewing of income distribution against wage earners in OECD countries cannot be justified

When we look at OECD countries as a whole, we see that income distribution is skewed heavily against wage earners and in favour of earnings. This skewing of income distribution is very difficult to justify: It has not prevented net corporate investment or corporate capital growth from declining, despite the rise in earnings; It has been used by companies to finance share buybacks and accumulate cash reserves, which does not contribute to growth; Until the COVID crisis, it gave rise to low inflation under the effect of low wage growth, leading to low interest rates and expansionary monetary policies that fuelled excessive rises in asset prices and indebtedness; By weakening household purchasing power, it has led to offsetting increases in household debt and fiscal deficits.