A Talent Economy Bubble?

While the talent (knowledge) economy continues to heat up, there’s an inherent risk associated with the wage and workforce gap that’s being created – so says Roger Martin in his article “The Rise and Likely Fall of the Talent Economy:”

Little of the value created by this well-compensated class is trickling down to the general population. “Real wages for the 62% of the U.S. workforce classified as production and nonsupervisory workers have declined since the mid-1970s.” Nor is the situation better for investors. “Across the economy, the return on invested capital, which had been stable for the prior 10 years at about 5%, peaked in 1979 and has been on a steady decline ever since. It is currently below 2% and still dropping, as the minders of that capital, whether corporate executives or investment managers, extract ever more for their services.”