Idea to Ponder
An idea to ponder…
When labor share is lower, the optimum level of capital utilization is lower.
Is this not obvious?
Relevant and even prescient commentary on news, politics and the economy.
An idea to ponder…
When labor share is lower, the optimum level of capital utilization is lower.
Is this not obvious?
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.