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Idea to Ponder

Edward Lambert | June 3, 2016 8:30 am

US/Global Economics

An idea to ponder…

When labor share is lower, the optimum level of capital utilization is lower.

Is this not obvious?

 

Comments (1) | Digg Facebook Twitter |
1 Comment
  • William Ryan says:
    June 4, 2016 at 10:04 am

    It would seem to me that one must make the distinction between short term and long term capital cost of ownership. As in the Total Cost of ownership(TCO) model -calculator provided by Harry Moser of ReshoreNow.org . There must be a price or penalty to pay if companies want to take all work outside the country and ship their product back in free. The price will be a value added tax for a company or a variable rate tariff for an industry as a whole…HRC and BS will not do this.

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