Neoclassical economists often maintain that there is a trade-off between equality and efficiency. That this is a false contention is shown forcefully by research conducted for example by Andrew Berg and Jonathan Ostry.Lars P Syll's Blog
There is no trade-off between equality and efficiency
Lars P. Syll | Professor of Economics, Malmo University
Another shibboleth of neoliberalism as a political theory based on economic efficiency bites the dust.
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ReplyDeleteAlso, a very important observation from Art Shipman at the New Arthurian Economics
ReplyDeleteUnit Labor Cost
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As Milton Friedman did with his MRTO graphs, the Unit Labor Cost calculation divides inflation out of GDP, then divides labor compensation by this inflation-adjusted GDP, effectively factoring inflation *INTO* the resulting numbers.
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Labor costs (including benefits) have been declining since 1961. Labor costs cannot be the driver of inflation.
This includes the great inflation of the 1970's. To me this implies that the inflation of the last 50 years has been driven by rent seeking, and increasing portions of the GDP going into the financial sector - in other words, enrichment of the 1% on the backs of the 99%