An Allegory: What Troubles Developed Economies?
Karl Sjogren
11

‘The return on labor is falling while the return on capital remains relatively high. Here, the return on capital is rents, interest, dividends and capital gains while the return on labor is real wages and proxies for a sense of security, belonging, and purpose.’

Do you have any data backing this up? It’s repeated constantly without any evidence. I would think low rates would be devastating to the returns on capital. Have wages dropped a commensurate amount? I don’t think so… Or is that why you included arbitrary measurements, because the hard data doesn’t support your theory?

All in all what a muddle. Caught between calling for reducing capital formation and increasing productivity which requires risking capital. Trade is technology. It is the inventing of new processes to create things at a cheaper cost. This includes the trade of labor.

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