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The recent trend the capital component was a little light, labor was a bit more than usual. Its the 'mfp' that is really lagging. My speculation is business i
by beezle 5y ago
The recent trend the capital component was a little light, labor was a bit more than usual. Its the 'mfp' that is really lagging.
My speculation is business investment in r&d has vanished, in part because of stock buybacks and in part executive level compensation. Think about what the r&d spending was like back in the 50s-mid 80s and then the initial flipping of the online switch in the late 90s early 00s. The easy gains seem to have been made?
- mschuster91 5y ago> My speculation is business investment in r&d has vanished, in part because of stock buybacks and in part executive level compensation. No, it only has shifted. In ye olde days, companies took the risks of R&D spending upon themselves. These days, R&D spending has been shifted towards the capital market (especially venture capital) and in some areas universities, and companies buy startups that have shown results, and the VC investors/taxpayers/university endowments bear the risk.
- beezle 5y agoNot sure most people would consider venture capital funded startups as even close to the same as the large corporate basic R&D of the past. A better 'name' might be: niche short term applied r&d. Likewise, university "research" is not the wide open expanse that it once was either.