Re:Hallmark of an Economic Ponzi Scheme
by JumpCrisscross on Thursday June 14, 2018 @09:08AM
(#17311354)
> The article shows a different view: total wages dropped as a percentage of GDP from 50% post-WWII to 42% in 2011
The article and I are in agreement on this narrow point. Wages as a fraction of GDP are down. Wages, themselves, are up.
Broadly, I disagree with the assertion that our economy's growth is unusually debt-fueled. Total debt as a fraction of GDP is worryingly high [1]. Strip out financial sector indebtedness, however, and we're where we were in the 80s. Household debt explains a relatively narrow slice of recent GDP growth.
The article and I are in agreement on this narrow point. Wages as a fraction of GDP are down. Wages, themselves, are up.
Broadly, I disagree with the assertion that our economy's growth is unusually debt-fueled. Total debt as a fraction of GDP is worryingly high [1]. Strip out financial sector indebtedness, however, and we're where we were in the 80s. Household debt explains a relatively narrow slice of recent GDP growth.
[1] https://en.wikipedia.org/wiki/Financial_position_of_the_Unit...