…of international capital flows. I agree that corrupt and inefficient domestic institutions in many developing countries are major impediments to growth. And there are lots of examples where citizens have…

…out in a post today. That has meant that the US has not had to attract much capital from the private sector. The following chart shows the total inflows of…

…one to assess how proposed tax changes will affect economic growth. Suppose Congress eliminated the double taxation of capital income by doing away with taxes on capital gains and dividends…

…is making headway in understanding the importance of low labor share of income. Remember low labor share means high capital share. Capital income is dedicated to increasing the means of…

…corner toward a contraction. So, do we see any signs? … Well, yes. This graph plots the aggregate profit rate against the savings rate of capital income. Aggregate profit rate…

…But let’s break this out. Profit rate = (1 – labor share)*GDP Output/Capital Profit rate = (1 – unit labor costs/inflation)*productivity * labor hours/Capital As unemployment comes down, labor hours…

…of demand to purchase production. The effective demand limit says that the combined utilization rates of labor and capital will not surpass an effective labor share. Therefore, slack in the…

…be increasing its income. The problem is that capital income obtained a high level of consumption after the recovery. And capital income tends to reduce spending toward the end of…

…al., I use a measure labeled “Comprehensive Income” that includes accrued, marked-to-market capital gains. I go a step further, however, and propose another measure based on that, a residual of…

…things such as eliminating the preferential capital gain rate (that benefits the wealthy who own the vast majority of the capital assets) eliminating the section 1031 “like kind exchange” rules…