|
|
|
|
|
|
by RivieraKid
4436 days ago
|
|
|
It's pretty simple if I understand it correctly. GDP = total income in the economy = income that goes to labour + income that goes to owners of capital. g is the absolute growth of GDP, r is the absolute growth of income that goes to capital. If r > g, then the share of income that goes to labour is shrinking as a ratio of GDP. Another problem is that the income that goes to labour is increasingly unevenly distributed. |
|
|