If GDP keeps increasing, but the percentage of GDP that flows to labor keeps decreasing, then both of these things are true: * the economy has grown * people

If GDP keeps increasing, but the percentage of GDP that flows to labor keeps decreasing, then both of these things are true: * the economy has grown * people are worse off People's feelings about the economy can be both accurate ("we are worse off") and inaccurate ("the economy is worse"). The lesson here is that we need to clear about what the metrics we are using (e.g. GDP or disposable income after housing/health/food/transportation is accounted for) are actually good for. Rising GDP really does indicate a larger and/or more productive economy. But because of the way wealth is distributed and controlled in the US, a larger and/or more productive economy does not have any direct relationship to individual people's economic situation.