--- title: "Meaning & Key Takeaway of: In the old 20th-century income…" description: "\"In the old 20th-century income distribution system, the shares of income going to capital, mainly in profits, and labor, in wages and non-wage benefits..." image: "https://sms4smile.com/quotes/i/804/guy-standing-4017_labor_in-the-old-20th-century-income-distribut_1712179.jpg" --- # In the old 20th-century income distribution system, the… ![“In the old 20th-century income distribution system, the shares of income going to capital, mainly in profits, and labor, in wages and non-wage benefits, were roughly stable. But that system is no more.” quote by Guy Standing](https://sms4smile.com/quotes/i/804/guy-standing-4017_labor_in-the-old-20th-century-income-distribut_1712179.jpg) [Download](https://sms4smile.com/quotes/i/804/guy-standing-4017_labor_in-the-old-20th-century-income-distribut_1712179.jpg) [Open image](https://sms4smile.com/quotes/i/804/guy-standing-4017_labor_in-the-old-20th-century-income-distribut_1712179.jpg) > “In the old 20th-century income distribution system, the shares of income going to capital, mainly in profits, and labor, in wages and non-wage benefits, were roughly stable. But that system is no more.” [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The traditional split between capital and labor income has collapsed, reshaping economic power and inequality. **In simple terms:** Income shares have shifted away from stable labor‑capital balance. Key Takeaway Recognize and adapt to new economic realities. Themes economics inequality labor capital policy Mood concerned analytical Type economic political When to use this quote - policy analysis - business strategy - personal finance - academic research - public debate Key Concepts distributional change precariat wealth concentration Questions to Reflect On - How does this shift affect your career? - What policies could rebalance income? A Different Perspective The transition may be uneven and cause social unrest. ★ ★ ★ ★ ★ No ratings yet [Income distribution](https://sms4smile.com/quotes/about/income-distribution/) [Labor](https://sms4smile.com/quotes/about/labor/) [System](https://sms4smile.com/quotes/about/system/) [Wages](https://sms4smile.com/quotes/about/wages/) ## Related quotes > [I don't see basic income as a panacea, but we must have a new income distribution system. The old one has broken down irretrievably.](https://sms4smile.com/quotes/guy-standing/i-don-t-see-basic-income-as-a-panacea-but-we-must-have-a-new-income/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [The income distribution system constructed in the 20th century has broken down, and it will not come back.](https://sms4smile.com/quotes/guy-standing/the-income-distribution-system-constructed-in-the-20th-century-has/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [We are in an era of chronic insecurity and growing inequalities. In that context, we need to have new mechanisms for income distribution which…](https://sms4smile.com/quotes/guy-standing/we-are-in-an-era-of-chronic-insecurity-and-growing-inequalities-in/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“The share of income going to the rich remained remarkably constant from the mid-1940s through the 1970s and then began to escalate rapidly. For…](https://sms4smile.com/quotes/larry-m-bartels/the-share-of-income-going-to-the-rich-remained-remarkably-constant/) [Larry M. Bartels](https://sms4smile.com/quotes/author/larry-m-bartels/) > [When America installs a minimum income, it's going to be doing it in a very different historical context than Switzerland or Sweden or Germany,…](https://sms4smile.com/quotes/charles-murray/when-america-installs-a-minimum-income-it-s-going-to-be-doing-it-in-a/) [Charles Murray](https://sms4smile.com/quotes/author/charles-murray/) > [I'm just trying to get used to living on a fixed income. Now, it's going to get unfixed.](https://sms4smile.com/quotes/janet-jackson/i-m-just-trying-to-get-used-to-living-on-a-fixed-income-now-it-s/) [Janet Jackson](https://sms4smile.com/quotes/author/janet-jackson/) > [“Chief among these headwinds is the rise of inequality that since 1970 has steadily directed an ever larger share of the fruits of the…](https://sms4smile.com/quotes/robert-j-gordon/chief-among-these-headwinds-is-the-rise-of-inequality-that-since-1970/) [Robert J. Gordon](https://sms4smile.com/quotes/author/robert-j-gordon/) > [In the United States today we have the most unequal wealth and income distribution of any major country on earth - worse than at…](https://sms4smile.com/quotes/bernie-sanders/in-the-united-states-today-we-have-the-most-unequal-wealth-and-income/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [Increasing inequality in income distribution in this country has broader policy implications, and there is also the growing problem of perverse incentives that result…](https://sms4smile.com/quotes/barney-frank/increasing-inequality-in-income-distribution-in-this-country-has/) [Barney Frank](https://sms4smile.com/quotes/author/barney-frank/) > [“Normally, changes in the average income (total income divided by the total number of people) are not very different from changes in median income…](https://sms4smile.com/quotes/anonymous/normally-changes-in-the-average-income-total-income-divided-by-the/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [The latest research on social mobility showed that there's a large aggregate decline in the U.S. in your chances of earning more than your…](https://sms4smile.com/quotes/raj-chetty/the-latest-research-on-social-mobility-showed-that-there-s-a-large/) [Raj Chetty](https://sms4smile.com/quotes/author/raj-chetty/) > [Cities that tend of have better schools for middle-income families, they tend to have much better prospects for kids moving up in the income…](https://sms4smile.com/quotes/raj-chetty/cities-that-tend-of-have-better-schools-for-middle-income-families/) [Raj Chetty](https://sms4smile.com/quotes/author/raj-chetty/) > [The Supreme Court consistently favors organized money and the political privileges of the corporate class. We have a Senate that is more responsive to…](https://sms4smile.com/quotes/bill-moyers/the-supreme-court-consistently-favors-organized-money-and-the/) [Bill Moyers](https://sms4smile.com/quotes/author/bill-moyers/) > [Income tax in particular in the United States is concentrated on the top half of the income distribution, and very heavily skewed towards the…](https://sms4smile.com/quotes/judy-woodruff/income-tax-in-particular-in-the-united-states-is-concentrated-on-the/) [Judy Woodruff](https://sms4smile.com/quotes/author/judy-woodruff/) > [The climate change problem is at its heart an ethical problem. It's a problem of income distribution and it's a problem of income distribution…](https://sms4smile.com/quotes/ross-garnaut/the-climate-change-problem-is-at-its-heart-an-ethical-problem-it-s-a/) [Ross Garnaut](https://sms4smile.com/quotes/author/ross-garnaut/) ## More by Guy Standing > [“The ethical and philosophical justifications for basic income – social justice, freedom and economic security – have been well established. They are embedded in…](https://sms4smile.com/quotes/guy-standing/the-ethical-and-philosophical-justifications-for-basic-income-social/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [What we can say with confidence is that the technological revolution is worsening inequality, due mostly to mechanisms that limit free markets. It is…](https://sms4smile.com/quotes/guy-standing/what-we-can-say-with-confidence-is-that-the-technological-revolution/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“While there are reasons to be sceptical about the predicted technological dystopia that has prompted many high-tech plutocrats to come out in support of…](https://sms4smile.com/quotes/guy-standing/while-there-are-reasons-to-be-sceptical-about-the-predicted/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“Selective paternalism, for those on low incomes or for other groups needing state assistance, is perhaps even worse than general paternalism, since the minority…](https://sms4smile.com/quotes/guy-standing/selective-paternalism-for-those-on-low-incomes-or-for-other-groups/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [A democratically governed national fracking fund should be set up, perhaps similar to what Norway and Alaska have. Areas of drilling should be rented…](https://sms4smile.com/quotes/guy-standing/a-democratically-governed-national-fracking-fund-should-be-set-up/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [Many low-income people in the U.S.A. charged with a crime opt to plead guilty to a lesser offence because they cannot afford to go…](https://sms4smile.com/quotes/guy-standing/many-low-income-people-in-the-u-s-a-charged-with-a-crime-opt-to-plead/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [People in the precariat rely very heavily on money wages.](https://sms4smile.com/quotes/guy-standing/people-in-the-precariat-rely-very-heavily-on-money-wages/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“Ironically, opponents of basic income on the grounds that it would lead to a dismantling of the welfare state tend to support some variant…](https://sms4smile.com/quotes/guy-standing/ironically-opponents-of-basic-income-on-the-grounds-that-it-would/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [Globalisation began what should be called the Great Convergence, creating a globalising labour market in which wages in emerging market economies slowly converge with…](https://sms4smile.com/quotes/guy-standing/globalisation-began-what-should-be-called-the-great-convergence/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“Although reducing poverty, economic insecurity, malnutrition and ill-health should be the primary driving forces, an additional factor is the stress being placed on societies…](https://sms4smile.com/quotes/guy-standing/although-reducing-poverty-economic-insecurity-malnutrition-and-ill/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“The first basic income pilot in a developing country was implemented in the small Namibian village of Otjivero-Omitara in 2008–9, covering about 1,000 people.40…](https://sms4smile.com/quotes/guy-standing/the-first-basic-income-pilot-in-a-developing-country-was-implemented/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“Leaving aside instrumental reasons for supporting a basic income, the thrill lies in the potential to advance full freedom and social justice, and the…](https://sms4smile.com/quotes/guy-standing/leaving-aside-instrumental-reasons-for-supporting-a-basic-income-the/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“Reformers must be able to pre-empt the expected jibes over lack of ‘reciprocity’, affordability, inducement to laziness, ‘something for nothing’ and cash for the…](https://sms4smile.com/quotes/guy-standing/reformers-must-be-able-to-pre-empt-the-expected-jibes-over-lack-of/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [“The importance of ethical governance, exemplified by the Norwegian Pension Fund, is highlighted by a deplorable UK government proposal in 2016 to set up…](https://sms4smile.com/quotes/guy-standing/the-importance-of-ethical-governance-exemplified-by-the-norwegian/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [If the scale of gas is anything like the claims made by its advocates, it has major implications for the economy and British society.…](https://sms4smile.com/quotes/guy-standing/if-the-scale-of-gas-is-anything-like-the-claims-made-by-its-advocates/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) [Explore all 117 Guy Standing quotes ](https://sms4smile.com/quotes/author/guy-standing/) ## More Income distribution quotes > [The climate change problem is at its heart an ethical problem. It's a problem of income distribution and it's a problem of income distribution…](https://sms4smile.com/quotes/ross-garnaut/the-climate-change-problem-is-at-its-heart-an-ethical-problem-it-s-a/) [Ross Garnaut](https://sms4smile.com/quotes/author/ross-garnaut/) > [Income tax in particular in the United States is concentrated on the top half of the income distribution, and very heavily skewed towards the…](https://sms4smile.com/quotes/judy-woodruff/income-tax-in-particular-in-the-united-states-is-concentrated-on-the/) [Judy Woodruff](https://sms4smile.com/quotes/author/judy-woodruff/) > [The Supreme Court consistently favors organized money and the political privileges of the corporate class. We have a Senate that is more responsive to…](https://sms4smile.com/quotes/bill-moyers/the-supreme-court-consistently-favors-organized-money-and-the/) [Bill Moyers](https://sms4smile.com/quotes/author/bill-moyers/) > [Cities that tend of have better schools for middle-income families, they tend to have much better prospects for kids moving up in the income…](https://sms4smile.com/quotes/raj-chetty/cities-that-tend-of-have-better-schools-for-middle-income-families/) [Raj Chetty](https://sms4smile.com/quotes/author/raj-chetty/) > [The latest research on social mobility showed that there's a large aggregate decline in the U.S. in your chances of earning more than your…](https://sms4smile.com/quotes/raj-chetty/the-latest-research-on-social-mobility-showed-that-there-s-a-large/) [Raj Chetty](https://sms4smile.com/quotes/author/raj-chetty/) > [“Normally, changes in the average income (total income divided by the total number of people) are not very different from changes in median income…](https://sms4smile.com/quotes/anonymous/normally-changes-in-the-average-income-total-income-divided-by-the/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Increasing inequality in income distribution in this country has broader policy implications, and there is also the growing problem of perverse incentives that result…](https://sms4smile.com/quotes/barney-frank/increasing-inequality-in-income-distribution-in-this-country-has/) [Barney Frank](https://sms4smile.com/quotes/author/barney-frank/) > [In the United States today we have the most unequal wealth and income distribution of any major country on earth - worse than at…](https://sms4smile.com/quotes/bernie-sanders/in-the-united-states-today-we-have-the-most-unequal-wealth-and-income/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [“Chief among these headwinds is the rise of inequality that since 1970 has steadily directed an ever larger share of the fruits of the…](https://sms4smile.com/quotes/robert-j-gordon/chief-among-these-headwinds-is-the-rise-of-inequality-that-since-1970/) [Robert J. Gordon](https://sms4smile.com/quotes/author/robert-j-gordon/) > [We are in an era of chronic insecurity and growing inequalities. In that context, we need to have new mechanisms for income distribution which…](https://sms4smile.com/quotes/guy-standing/we-are-in-an-era-of-chronic-insecurity-and-growing-inequalities-in/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) > [My research in this period centered around growth, technical change, and income distribution, both how growth affected the distribution of income and how the…](https://sms4smile.com/quotes/anonymous/my-research-in-this-period-centered-around-growth-technical-change/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Despite a voluminous and often fervent literature on "income distribution," the cold fact is that most income is not distributed: It is earned.](https://sms4smile.com/quotes/thomas-sowell/despite-a-voluminous-and-often-fervent-literature-on-income/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [A premise of the new city is that we want a society to be as egalitarian as possible. For this purpose, quality-of-life distribution is…](https://sms4smile.com/quotes/enrique-penalosa/a-premise-of-the-new-city-is-that-we-want-a-society-to-be-as/) [Enrique Penalosa](https://sms4smile.com/quotes/author/enrique-penalosa/) > [“In our day, this global offensive plays a well-defines role. Its aim is to justify te very unequal income distribution between countries and social…](https://sms4smile.com/quotes/eduardo-hughes-galeano/in-our-day-this-global-offensive-plays-a-well-defines-role-its-aim-is/) [Eduardo Hughes Galeano](https://sms4smile.com/quotes/author/eduardo-hughes-galeano/) > [The income distribution system constructed in the 20th century has broken down, and it will not come back.](https://sms4smile.com/quotes/guy-standing/the-income-distribution-system-constructed-in-the-20th-century-has/) [Guy Standing](https://sms4smile.com/quotes/author/guy-standing/) [Browse all 20 Income distribution quotes ](https://sms4smile.com/quotes/about/income-distribution/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "In the old 20th-century income distribution system, the shares of income going to capital, mainly in profits, and labor, in wages and non-wage benefits, were roughly stable. 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