/lit/ - Literature

>>17287584
>>17291425

cont.

problems with inequaltiy within rich countries over the past 30-40 years; because the windfall from investment in other parts of the world has not been distrubuted. This problem is in fact a very basic result of modern macro models, that open capital markets for countries with lower natural interest rate leads to lower real wages and higher real return to capital. This was never considered a problem prima facie because redistribution of that wealth can be pareto-efficient cf. coase theorem and the second welfare theorem. The fact that this redistribution did NOT happen is a political, not an economic problem.

Forgot the graph in my first post.

>>16887522
>That's extremely far from true in most capitalist enterprises.

Now we're entering reality, not theory. The original claim was related to absolute statements on how workers NEVER are paid their share etc., i.e. commie nonsense. That actual outcomes diverge from perfect competition conditions is completely congruent with classic economic theory.

>Today, that isn't true for the majority of workers, wages have completely stagnated, yet Capitalist profits are higher than ever.

This is wholly dependent on what you mean by workers. Are you aware that globally, wages have not stagnated at all, but in fact a huge number of people have been lifted out of poverty over the past 5 decades? The phenomenom of stagnating wages is a phenomenom isolated to developed countries, and this stagnation is directly related to the growth in incomes in developing countries. Check the graph, it's from Branki Milanovic's "Global Inequality", a good book on global income growth over recent decades. That is not to say there is no problem, but it is worth taking such miraculous improvements in the lot of the poor when judging the overall effects of capitalism.

The world is indeed getting better, except for white people