ABSTRACT
This chapter compares the employee share of national income with the profit share. It explains the importance of income distribution in understanding the movements of the macro-economy. The national income of the United States is defined by the US Department of Commerce to mean all of the income received by any citizen as a result of economic activity. The chapter has highlighted the extremely high rate of inequality in the United States and also showed the degree of inequality between employees and owning capitalists increases in every expansion. Karl Marx pointed out that unjust social distributions of income and power-those that existed under slavery or in feudalistic societies, for instance-ended in great revolutions. National income simply equals employee income plus property income. The ratio of profits to employee income rises in expansions, but the ratio of employee income to all income falls in expansions. Thus, the ratio of employee income to all national income is called the employee share.
