How Stock Bubbles Die
The mega trends in the next decade are increased wages for workers and declines in corporate profit margins. The political tailwinds are in place. There is high income inequality; the large cap companies are earning extremely high profit margins. Politicians have these large cap firms squarely in their crosshairs. One proposal that supports this point is the global minimum tax.
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Aligned with this trend is universal basic income which might be experimented with beyond the recent COVID-19 stimulus checks. We also could see an increase in union membership. Amazon employees have been attempting to unionize, but Amazon has thwarted some of these efforts. As you can see from the chart below, there has been a minor uptick in unionization in the past few quarters. This follows a very long period of declines since the 1970s.