Alongside what everyone else mentioned, I believe a part of it is that the margins are being spent on frivolous; Instead of putting the money back into the business it is hoarded or spent on personal goods and services by those that control the company/business/corporation. There is is inflationary reasons but we don't want to accept this fact or think about it at all. And yes giving employees proper wages and time off is an expense a business should pay and this is where a lot of wealth is being taken out of from the middle class.