More on the labor-market model using labor share. I want to look at productivity to make the case that the labor supply curve is actually the effective demand limit in the model. (link to previous article) Start with the equation… labor share = real wage/productivity We have all seen that over the years, real wages […]
Yves Smith writes: SEC Commissioner Calls FSOC “Vast Left Wing Conspiracy” We witnessed a new outburst of Banking Industry Persecution Complex yesterday from SEC Commissioner Michael Piwowar, who was speaking before an assembly of fellow inmates at the American Enterprise Institute. Piwowar has made it clear in previous speeches that he is opposed to provisions […]
The Washington Post reports: While the youngest boomers are still in their forties, the generation as a whole is shifting from one of net savers to one of net spenders. And what that leads to is the fact that over the coming decades, wealth is expected to transfer between generations at only an increasing rate. […]
By Dean Baker (2011) Progressives need a fundamentally new approach to politics. They have been losing not just because conservatives have so much more money and power, but also because they have accepted the conservatives’ framing of political debates. They have accepted a framing where conservatives want market outcomes whereas liberals want the government to […]
Hat Tip Digsby and Kos Cartoons “Supreme Court Chooses Religion Over Science” In a footnote, Justice Alito concedes that Hobby Lobby’s religious-based assertions are contradicted by science-based federal regulations: “The owners of the companies involved in these cases and others who believe that life begins at conception regard these four methods as causing abortions, but […]
I have had a series of posts (one, two) in response to Simon Wren-Lewis‘ post on an aggregate demand constraint. My posts give another version of his model which puts real wages on the y-axis and Qty labor employed on the x-axis. I put labor share on the y-axis and employment rate on the x-axis. […]
This post is a message to the Federal Reserve if they are serious about maximizing employment. Yesterday I posted a model for labor share plotted against labor (Qty.) in response to a post by Simon Wren-Lewis. The model suggests that there is an ideal level of labor share that will employ the most amount of […]
David Zetland @aguanomics · 2h Here’s the AMA link: http://www.reddit.com/r/IAmA/comments/2ayco8/iama_water_economist_from_california_ask_me/ …
The Office of Management and Budget annually releases the President’s Budget as a baseline proposal for the next Fiscal Year. If the Congress is in whole or in part in the hands of the opposite party this mostly gets filed away somewhere in a drawer entitled “You Wish”. But it does come complete with a […]