WHERE THE MONEY GOES: “Taking 1967 as our starting point, 30% of the cost of the things we consumed that year went to manufacturing them; by 2007, that figure had fallen to 16%. In contrast, what we spent on business services over the same period jumped from 12% to 26%. That’s because baked into the price of everything we buy is the rising cost of advertising, accounting, legal services, insurance, real estate, consulting, and the like—jobs performed by the high-wage workers of our modern economy. These days, 52% of all compensation goes to office workers. That includes the manufacturing sector: nearly a third of workers aren’t on the factory floor; they’re behind desks.”
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