Friday, June 4, 2021

How U.S. capitalism "lifts all boats" — Jonathan Nitzan and Shimshon Bichler

It doesn't....
Real-World Economics Review Blog
How U.S. capitalism "lifts all boats"
Jonathan Nitzan and Shimshon Bichler

1 comment:

Ahmed Fares said...

The graph is misleading.

It compares wages which are a flow variable to the value of a stock market investment which is a stock variable.

Worse yet, it assumes reinvested earnings for the stock market investor but not the worker. In reality, a portion of a worker’s earnings end up being invested, if not in the stock market, then usually in real estate. A fair comparison would have included the returns for those investments also.

Apples and oranges.