During the twentieth century, the share of American corporate income going to profits as opposed to wages, was higher after recessions than before.

Question

Quizplus · Accepted Answer

This phenomenon is known as "profit-led growth" and has been observed in multiple studies. After a recession, companies may focus more on cutting costs and increasing profits, leading to a higher share of income going to profits rather than wages.

During the Twentieth Century, the Share of American Corporate Income