Conclusion: The rise in power of the monopolies as Joseph Stiglitz writes is giving more power to capital income. The above dynamics between labor and capital reflect what he is saying.
The implication is that capital income has been getting more and more control over labor. The result has been lower labor force participation, higher unemployment, lower capacity utilization and a weakening utilization of labor.
Something should be done to give power back to labor.Effective Demand
Circular Flow of Labor & Capital
Edward Lambert
1 comment:
Without government-subsidized private credit creation then much more purchasing power would have been created as shares in equity, common stock, and the division between capital and labor much less pronounced than it is.
But why should those with equity share it when they can use that equity as collateral for a loan of legally stolen purchasing power from the less or non so-called creditworthy?
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