Are Returns to Capital Hitting New Historic Highs?
Some analysts believe that earnings of owners of capital are booming, setting new records. The basis of this view is that corporate profits, both before and after taxes, have been climbing in recent years as a percent of GDP. This has contributed to the view that workers are falling behind as the share of compensation declines, reflecting the rising share going to owners of corporate capital. The difficulty with this conclusion is that corporate profit is not the only payment to owners of capital. Interest, rent and profit of unincorporated business are also payments for the services of capital. This article discusses these components and their relevance to this belief.
|Date of creation:||31 May 2007|
|Date of revision:|
|Publication status:||Published in Research Buzz 5.3(2007): pp. 1-3|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:17774. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.