Yes, it is being eaten up. By the capitalists. It's pretty frikkin obvious. We could have avoided a lot of the problems we have now if the owners, shareholders and executives had been willing to pay fair wages. If they want low taxes someone somewhere has to be paid enough to pay them.
But they didn't want to do that.
Instead they paid less, encouraged a credit based economy that sucked even more value out of the earnings of the masses, yet another transfer of wealth from the bottom to the top. So now we have a situation where living wages are becoming a fiction, libtards are telling people to get bootstrappy while ignoring the fact that there is a lot of simple shit work that still needs to be done and should be paid a living wage for, the wealthy are encouraged to ignore any responsibilities or understanding of a social contract (look it up Americans, especially you Christians, it's a useful albeit foreign concept) and everything is going to hell.
Basically, capitalists can either agree to pay out decent wages and have low taxes on their investments, or they can subsidize their businesses with social services paid for through higher taxes. Low pay, low taxes and no social network is just the road to Detroit.