Unemployment and the Maturity of Capitalism

Blair Fix

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: In my last post, I discussed the underwhelming relation between interest rates and unemployment. In this post, I’ll look at a better way to connect unemployment to interest income. It turns out that if you take US net interest and divide it by corporate profit, you get a ratio that closely tracks unemployment. It’s a measure that Jonathan Nitzan and Shimshon Bichler call the ‘maturity of capitalism’. If this language sounds odd, that’s because Nitzan and Bichler see capitalism differently than your average economists. So before we get to the data, let’s review some of their thinking.

Keywords: income distribution; interest rate; maturity of capitalism; profit; sabotage; unemployment (search for similar items in EconPapers)
JEL-codes: D3 E24 E4 J6 P00 P1 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-hme and nep-pke
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