This little video puts into 1 minute and 43 seconds, the simple challenges to Abenomics in Japan. Getting money from the corporations into the pockets of the people, namely labor, namely the consumers. Aging population on fixed income. They like deflation. Small percentage of children in population. Children are actually outnumbered by pets.  

Is there a case for raising interest rates by the Fed? Even a weird one? In the previous post, I explained the reasoning behind the current lower level of real GDP. The explanation is that real GDP declines to an equilibrium with the low interest rate in the money market for labor income. So if […]

Real GDP has dropped to a new level. Many economists think it will return to its previous trend before the crisis. I made this video to explain how real GDP can drop to a new level as a result of labor share of income dropping after the crisis.   Capital income rose after the crisis, […]

So the cobra equation has made me re-evaluate the dynamics of the effective demand limit. The main reason is that the graph of the Cobra equation shows that capital utilization decreases as employment increases at the effective demand limit. I was assuming that as employment increased, the utilization of capital would also increase. That was […]

Here is an interview from the Real News Network with one of the founders of the Basic Income initiative in Switzerland, Enno Schmidt. The initiative would guarantee a basic income of $2800 per month for every adult. That may seem like a lot from the perspective of the United States, but it is enough to […]

I just want to pass along a great show by the Renegade Economist, which is its pilot show in the United Kingdom. If we only had a show like this in the United States.

This post continues the exploration into the Cobra equation, which measures the profitability of utilizing labor and capital as a function of labor share. Now it looks as though the Cobra equation is implying a natural rate of unemployment. The simplified Cobra equation is now… Measure of profitability in the aggregate = (x + y) […]

In the morning I posted about the Cobra equation and included some graphs using past data. The graphs showed how capital utilization and employment of labor would increase up to the profit maximization line and then fall back into a recession. But I did not include a graph for the years before the 2001 recession, […]

OK… so the exploration is continuing into the new equation which I am calling “The Cobra Equation” because the 3D curve looks like a cobra. This equation shows promise in its ability to explain the process of the business cycle and to ascertain the utilization of labor and capital near the end of the business […]

I am working on a new equation and want to pass it along for feedback. The equation is 3 dimensional and simulates the effective demand limit upon the utilization of labor and capital. Here is the equation… Measure of profitability = MFP * ((x+y) – a * (x^2 * y^2) – b * (x^2 + […]