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If you assume that productivity is fixed, and that relative shares of profits, wages, and taxes are fixed. Then the above is true. The reality is that the abo
by lumost 4y ago
If you assume that productivity is fixed, and that relative shares of profits, wages, and taxes are fixed. Then the above is true. The reality is that the above have complex non-stationary relationships. Labor can get more expensive and more efficient. Speculative investment can be reduced, and capital/government can reduce/increase their share of the economy.
A soft-landing was possible post-WW2 US economy, where the US both inflated away large debts and maintained high GDP growth rates. We'll see how things shake out.