It's pretty simple if I understand it correctly. GDP = total income in the economy = income that goes to labour + income that goes to owners of capital.
g is the absolute growth of GDP, r is the absolute growth of income that goes to capital. If r > g, then the share of income that goes to labour is shrinking as a ratio of GDP.
Another problem is that the income that goes to labour is increasingly unevenly distributed.
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It's pretty simple if I understand it correctly. GDP = total income in the economy = income that goes to labour + income that goes to owners of capital.
g is the absolute growth of GDP, r is the absolute growth of income that goes to capital. If r > g, then the share of income that goes to labour is shrinking as a ratio of GDP.
Another problem is that the income that goes to labour is increasingly unevenly distributed.