The record gap between corporate profits and worker pay has an ‘undercurrent of betrayal,’ top economist warns
Fortune
by Jason MaFebruary 23, 2026
AI-Generated Deep Dive Summary
Diane Swonk, chief economist at KPMG, has issued a stark warning about the widening gap between corporate profits and worker pay, calling it an "undercurrent of betrayal" that threatens economic stability. Her report reveals that corporate profits as a share of U.S. GDP have surged to 15.85%, up from 8% in 1982, while employee compensation has dropped to 61.9% from 66.6% over the same period. This divergence is at its highest level since World War II, raising concerns about inequality and social trust.
Swonk highlights how this gap undermines the economic narrative of progress, as most Americans experience slow wage growth and rising costs for basic necessities like food, healthcare, and housing. While aggregate data suggest a resilient economy with steady income gains, the reality for everyday workers is one of stagnation and financial strain. The richest 20% of households account for nearly all U.S. spending growth, leaving the majority struggling to keep up with inflation.
The report also points to broader economic anxieties, including the impact of generative AI on job security and CEO decisions to freeze hiring or lay off workers despite unproven productivity gains from
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Originally published on Fortune on 2/23/2026