I track an estimation of consumption by capital income through the NIPA numbers and labor’s income share. Changes in this estimation give insights into how well capital income is doing. What do I find? The percentage of capital’s income used for consumption surged in the 2nd quarter 2015. To me, this is crazy. The dynamics […]
Both bulls and bears are examining wage growth for signs of incipient inflationary pressures. The current debate seems to assume that wages are completely determined by how much slack there is in the labor market and overall economy. Both conservatives and liberals seem to believe that if employment fall below current levels that wage growth […]
While the world is focused on the Syrian refugee crisis (now that the refugees have arrived in Europe) aid to refugees in Turkey, Lebanon and, especially, Jordan has been cut. The cash-strapped World Food Programme has had to drop one-third of Syrian refugees from its food voucher program in Middle Eastern host countries this year, […]
Via Diane Ravictch and Dailykos comes this video from last year. Mary Poppins Quits with Kristen Bell from Funny Or Die
When we last looked at Obamacare as an alleged “job-killer,” Matt Yglesias had just pointed out that 2014, the first full year of insurance on the exchanges, was also the best year for job creation since 1999. But recently a non-blogging friend reminded me of a related anti-Obamacare meme, the idea that employers have been […]
Effective Demand is basically a demand limit upon the business cycle. Wouldn’t it be great if it could be determined? Then we would know where the limit of a business cycles is. Well maybe we can determine effective demand. A simple equation for the Effective Demand Limit relates labor share to the utilization of labor […]
by Sandwichman The Confederate Ideology: “At this cost the system is maintained.”
by Joseph Joyce Global Volatility, Domestic Markets Unlike the global financial crisis of 2008-09, the current disruption in the financial markets of emerging market nations was anticipated. The “taper tantrum” of 2013 revealed the precarious position of many of these nations, particularly those dependent on commodity exports. The combination of a slowdown in Chinese growth, […]