What Happens to Money When Labor Splits From Capital?

Joubin Mirzadegan says the real question is what happens to money once labor splits from capital. People have earned money through labor, and that is no longer going to happen. Capitalism stops working for people when capital and labor come apart, so the next problem is what happens to people.

Stock value for companies used to be tied to labor, because labor was the input. As labor detaches from the creation of value, stock-market capital diverges from labor input. The U.S. stock market is worth about $100 trillion, roughly in line with the GDP of the world. Twenty or thirty years ago, the overall value of the stock market was way lower than the GDP of the world.

The decoupling is the crux for humanity. Over the next decade or so, society has to work out what follows when creating value no longer depends on labor.