Saturday, January 15, 2022

"capital income derives from more sources than just (corporate) profits"

From Measuring Labor’s Share of Income (PDF, 11 pages) by Paul Gomme and Peter Rupert:

[T]he terms “capital’s share” and “profit share” are often used interchangeably, ignoring the fact that capital income derives from more sources than just (corporate) profits.

 

From Finance is Not the Economy (2016) by Dirk Bezemer and Michael Hudson:

Immoderate debt creation was behind that “Great Moderation”. That is what made this economy the “Great Polarization” between creditors and debtors. This financial expansion took the form more of rent extraction than of profits on production — a fact missed in most analyses today.

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