Capital, Profits and Wages in 2021
Long before Karl Marx and Jenet Yellen, some might have suspected that there are three elements that define the core of capitalism. These are, of course, capital. But capitalism is also a system that is defined by profits – commonly camouflaged as shareholder values – as well as wages.
From Smith to Yellen the existence of these three fundamentals was never threatened. Yet the relationship between the three has altered somewhat in recent years. This is the argument of Belgian economist Jan Eeckhout.