The significant gap between CEO and worker pay is a direct result of globalization. When companies can easily outsource labor, domestic workers lose their negotiating power, or "fear of loss." This allows capital owners and executives to capture a larger share of the value created, widening the income disparity.

The S&P 500 can rise during conflicts because the top 10% of Americans, who own 90% of stocks, are unaffected by rising gas or fertilizer prices that hurt the broader population. The market has become a proxy for the wealthy, not the overall economy's health.

The central thesis of "The Myth of Capitalism" is that historically high corporate profit margins stem from increased industrial concentration. This concentration, which grants significant pricing power, is a result of a multi-decade policy pendulum swing away from aggressive antitrust enforcement that began in the 1980s.

Wage stagnation is not accidental but a result of two concurrent policies. By sending manufacturing jobs overseas and simultaneously bringing in low-wage labor, corporations create a market where domestic workers lose nearly all leverage to demand higher pay for remaining jobs.

Free cash flow has outpaced earnings growth primarily for two reasons: a smaller share of corporate output is going to labor wages, and firms have been able to generate profits without significant capital expenditure. This surplus cash flows directly to shareholders, boosting valuations.

An analysis of ADP payroll data shows job growth is concentrated entirely in large companies (over 250 employees), while smaller firms are consistently shedding jobs. This divergence is attributed to smaller businesses' inability to absorb tariff costs or reshuffle supply chains, unlike their larger, more resilient counterparts.

Despite investor fears over geopolitics and inflation, companies are successfully navigating rising costs by passing them on to consumers. Strong revenue surprises show this pricing power is offsetting pressures at an index level, indicating market resilience rather than a widespread demand shock.

Beyond simple efficiency, Amazon's automation drive is a strategic financial maneuver. It's designed to transfer value from its human workforce—by eliminating jobs and associated costs like wages, benefits, and union risks—directly to shareholders through higher margins and customers via lower prices.

The growing gap between company productivity and employee wages isn't solely due to corporate greed. The ability to outsource work globally gives companies immense leverage, weakening the negotiating power of domestic workers and suppressing their wages.