Summer bonuses rose the most since 1991 this year. That is partly a reflection of the surge in corporate profits in recent years. But workers are earning more than their fair share of the pie. Labour income is growing much faster than output and the wage share has reached a five-year high. So far, workers remain reluctant to spend those income gains as private consumption remains sluggish. But consumer spending should pick up ahead of next year’s sales tax hike.
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