"According to the still dominant economic orthodoxy, the shift from wages to profits should have boosted investment and productivity. Yet in both the UK and the US, booming profits have been associated with falling investment. This is because the sustained squeeze on wages has created a number of highly damaging economic distortions. It has sucked out demand and encouraged debt-fuelled consumption. Because labour is cheap, firms have less incentive to invest in training and become more productive, helping to turn the UK into an increasingly low value-added and low-skilled economy." (Quoted from article)