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... and what is the increase in real profit growth to capital? The point of my post wasn't that wages never go up, but I do not remember when price increase MOS
by mhuffman 3y ago
... and what is the increase in real profit growth to capital? The point of my post wasn't that wages never go up, but I do not remember when price increase MOSTLY went to labor.
- medvezhenok 3y agoThe bubonic plague would probably be the classical historical example - cutting the labor supply in ~half increased wages/prices across the board with no increase in profit to capital. In a less somber example, unions in the 20th century had some notable successes at labor-driven inflation dynamics (i.e. at least classically until Reagan broke the back of labor by firing all the striking ATCs in the early 80s). While everyone's purchasing power shrunk because of the oil shocks in the 70s, labor unions were better at fighting back for their share of the pie than the rest - so perhaps not growth, but they were certainly winning the redistributive battle in the 70s.
- nostrademons 3y agoThey're flat-to-down since 2022: https://fred.stlouisfed.org/series/CP https://fred.stlouisfed.org/series/CP The situation since 2023 really has been price inflation largely accruing to labor.