Methodology and sources

Valuation of the work hour is derived from the data series published by the U.S. Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA). See, for example, series CEU4100000056 or CEU4100000081. The outputs, intermediate inputs, and value added per major NAICS sector are combined with reported aggregate work hours. The results are averaged across sectors for which sufficient data are available to produce the reported estimate. Currency conversion uses exchangeratesapi.io.

The total capital invested per sector is imputed using standard rates of return on investment. Overall profits are then estimated by comparing expected growth under the conditions of full reinvestment with actual growth. Thus the reported profits withdrawn figure is subject to error due to transient variation in return rates between sectors. This estimate could be improved with detailed reporting by investor/owners, which is currently unavailable and private by law. Alternatively it might be improved by the consideration of sale prices and labor/output metrics for large firms undergoing acquisition or merger.