Monday, October 5, 2015

Some Monday news

Darn, I forgot to clear out my inbox this weekend.

New Deal Demoncrat - gloat gloat gloat. He says he told you job growth was going to weaken.

FT Alphaville - global risk appetite in panic mode. Yes, indeed let's crack each other's heads open and feast on the goo inside.

Mark Thoma - market power and labour share of income. Quote:
[...]businesses with more market power are able to charge higher markups on their goods and services, meaning their pricing is higher than the cost of producing an additional goods or services compared to pricing in a perfectly competitive market. So in this situation where markups are high, goods and services are being produced less efficiently, with the increased profits going to the owners of capital.

Vollrath argues that this is how measured productivity growth is affected by the decline of the labor share of income. Market power is important for thinking about measured productivity growth because, as Vollrath says, it “dictates how efficiently we use our inputs.” ... Impeding the most efficient use of capital and labor via marked-up prices will reduce measured productivity. ... Perhaps this could explain some of the reason why measured productivity growth looks so meager in the seeming age of innovation...
But if it's all down to Cobb-Douglas exponents changing due to neocon anti-labour strategies, then what to make of the ten trillion dollars hidden in offshore bank accounts not being reinvested in the world economy?

FT Alphaville - assessing Abenomics re corporate capex. The real point is to shake the money out of corporate Japan's pockets, and it ain't happened yet.

FT Alphaville - negative rates and the death of banking. Izzy Kamizzy on rent extraction killing the hand that feeds it. I still say the entire glut-of-savings problem is the result of right-wing ideology. When will anyone listen to me?

No comments:

Post a Comment