A living profit

[ksen]

You could, theoretically, define excessive profits by some mathematical equation that shows a ratio of expenses, revenue, and profits, and say "a certain percentage in this ratio qualifies".

Personally I think the real reason it is undefined is so that if perchance you get profit limits or higher bottom wages you can still press for more, and more, and more, and more........

You deliberately cannot reach your goal.

Actually, the real reason it remains undefined is because we're not talking about the economy on a microscale. At a macro level the economy has performed better when the labor share of GDP is 5 to 10 points higher than it is now.

It's about coming up with policies that help move the labor share back up to a more optimal level for strong economic growth.

 

[coloradoatheist]

You could, theoretically, define excessive profits by some mathematical equation that shows a ratio of expenses, revenue, and profits, and say "a certain percentage in this ratio qualifies".

Personally I think the real reason it is undefined is so that if perchance you get profit limits or higher bottom wages you can still press for more, and more, and more, and more........

You deliberately cannot reach your goal.

Actually, the real reason it remains undefined is because we're not talking about the economy on a microscale. At a macro level the economy has performed better when the labor share of GDP is 5 to 10 points higher than it is now.

It's about coming up with policies that help move the labor share back up to a more optimal level for strong economic growth.

And can you give us examples of other countries where that has been the case over the long term? And factors like women and blacks equal rights, are we going to be able to get rid of those?

 

[ksen]

Actually, the real reason it remains undefined is because we're not talking about the economy on a microscale. At a macro level the economy has performed better when the labor share of GDP is 5 to 10 points higher than it is now.

It's about coming up with policies that help move the labor share back up to a more optimal level for strong economic growth.

And can you give us examples of other countries where that has been the case over the long term?

It's the history of the American economy. There's no need to bring in other countries.

And factors like women and blacks equal rights, are we going to be able to get rid of those?

You might want to work on hiding that misogyny and racism. Your mask is slipping.

 

[coloradoatheist]

And can you give us examples of other countries where that has been the case over the long term?

It's the history of the American economy. There's no need to bring in other countries.

And factors like women and blacks equal rights, are we going to be able to get rid of those?

You might want to work on hiding that misogyny and racism. Your mask is slipping.

And there were some huge variables in our economy that were different that we can't return to. We aren't going to return to China being a small player in the world economy or the technological advances we've had in the economy. Are we going to be able to go back to an economy without computers? And you won't compare our economic growth to other countries to see if different policies make a difference. There should be examples of lots of countries countries outgrowing the US over the last 35 or so years.

 

[ksen]

But, since I like you . . .here you go:

The Global Decline of the Labor Share

http://conversableeconomist.blogspot.com/2013/06/labors-falling-share-everywhere.html

http://www.slate.com/blogs/moneybox...the_decline_and_it_s_not_a_huge_mystery_.html

http://www.ft.com/intl/cms/s/0/63f14896-2f6c-11e3-8cb2-00144feab7de.html#axzz3EALE0yPH

 

[ksen]

There should be examples of lots of countries countries outgrowing the US over the last 35 or so years.

Labor share decline is a global phenomenon so why do you think other countries experiencing the same thing the US has been experiencing should be performing noticeably better?

But funnily enough, the countries that have managed to keep wealth/income equality more in check than the US have been able to weather the storm a bit better.