Let’s compare 2012 to 2013.
- From 4th quarter 2011 to 4thQ-2012, real GDP rose $294 billion. During that time, capital income fell $225 billion, while labor income grew $519 billion.
- From 4thQ-2012 to 4thQ-2013, real GDP rose $432 billion. During that time, capital income grew $444 billion while labor income fell $12 billion.
Granted there was a big spike in labor income at the end of 2012, but we now see the spike going in the other direction, toward capital income. From 3rdQ-2013 to 4thQ-2013, capital income rose $113 billion, while labor income only rose $11 billion.
Looks like there were very small Christmas bonuses this year.
At the end of 2012, the strategy was to take personal income before the tax changes of 2013. The strategy this year seems to be boost earnings for some buybacks. We already see a buyback here from Apple.
— Breaking News (@BreakingNews) February 7, 2014