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.
I modified your graph to divide by the CPI, and added one more item Average Hourly wage of non supervisory workers
ReplyDeleteSee Graph
Made all indices pinned to 1964-01-01 Here
ReplyDeleteThe PI curve turns into a straight line when you divide out the price increases. Interesting.
ReplyDeleteIf 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.
ReplyDeleteThe 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.
ReplyDeleteArt,
ReplyDeleteI have added in the effects of hours worked per week, population and the emratio at Graph gvs