Two notes on Graph #4 from yesterday (here renumbered):
Graph #1: Monetary Interest Paid by Domestic Business, relative to Total Labor Cost |
a. A sustained high (in the 1980s)
b. A gradual rise (in the 1990s), and
c. A sharp rise to peak.
The middle one, b, corresponds to the good years, when productivity was up and the Federal budget got balanced: the "macroeconomic miracle" years. Goldilocks.
2. I wonder if there is some relation between these peaks and Ed Lambert's "effective demand".
1 comment:
Again, my comment disappeared into Error 503 hell.
I wonder if there is some relation between these peaks and Ed Lambert's "effective demand".
Effective demand relates to labor share, and interest paid relates to capture by the finance sector.
So, in broad brush terms, I would guess yes.
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