Interesting thought from perusing Ritchie\’s blog

This little chart, showing the labour share of income.

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Now, just imagine that equity was your thing. That the workers by hand and mind get their fair share. You should therefore be arguing for a permanent recession, shouldn\’t you?

For, as you can see, the labour share of income really does go up in recessions (for the obvious reason that profits fall).

Of course, at the time you\’re doing this the more sensible of us will be saying, yes, lovely, but shouldn\’t we be thinking about absolute numbers, not just relative?

3 thoughts on “Interesting thought from perusing Ritchie\’s blog”

  1. I believe that relative poverty goes down during a recession, but absolute poverty goes up. that should make a good natural experiment as to whether people actually think that relative or absolute poverty is the most important, and as you say lefties should campaigne for recession. Strangely only the fringier greens do so openly, which I guess shows which option is the most important.

  2. So Much For Subtlety

    An unusual title for any article. Not relevant as such but I thought I would point it out.

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