Via Random Eyes: Corporate Profits and Personal Income, pinned at 1960:
FRED Graph#4kX |
Challenging the Premisses
Start with the debt problem, three views of it,
and the most important thing. Here's a longer look at the debt problem.
Here's a short one on economic policy, some surprising trends, and a few unusual policy recommendations. How'd we get into this mess? Read Policy Venn and Policies of the Venn Overlap. Still with me? Read A Matter of Life and Death. And for an overview, download my 12-page PDF |
6 comments:
I modified your graph to divide by the CPI, and added one more item Average Hourly wage of non supervisory workers
See Graph
Made all indices pinned to 1964-01-01 Here
The PI curve turns into a straight line when you divide out the price increases. Interesting.
If real PI is uphill and the real Average Hourly Wage is flat... What does this tell us? That all growth can be attributed to population growth? Or rather, to changes in the employment:population ratio?
Two answers to your question. Population, increase in emratio, more hours worked per person, the rentier tax that you talk about - interest paid on private debt. And finally higher compensation to top management of corporations.
The best way to payout corporate profits is through dividends; this way, profits can be spent before people realize you are insolvent, and hopefully it is spent before you are bankrupt.
Art,
I have added in the effects of hours worked per week, population and the emratio at Graph gvs
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