maybe returns to capital are falling because returns to labor are increasing. From everything I see, the opposite is the case, at least in the USA and Europe.

maybe returns to capital are falling because returns to labor are increasing. From everything I see, the opposite is the case, at least in the USA and Europe. Maybe it's the Chinese labor that's getting a bigger share of the returns. But I suspect that most of the "missing returns" go to those that exploit weaknesses in the financial system and know how to hide their profits, i.e. investment banks, hedge funds etc.