…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…

…the reinstatement of the preferential capital gains rate within 2 years of the 1986 tax reform’s well-considered removal of the preference, or the reinstatement of the absurd R&D credit when…

…understanding what I am typing about. Very briefly the question is: what effect would cutting the tax on profits have on the _US capital stock ? The particular issue is…

…lowered the chances of a repetition. Banks have deleveraged and possess larger capital bases. The replacement of debt by equity financing should provide a more stable source of finance. Indicators…