Great Questions from Paul Krugman

Why have profits been so strong in a weak economy? Why, with profits so high, don’t businesses find reason to invest more (equipment investment is actually fairly strong, but construction remains weak). (For the seriously wonkish, why do average and marginal q seem to be so different?)

051713krugman1-blog480His full post is here.

Advertisements

About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
This entry was posted in Uncategorized and tagged , , , , . Bookmark the permalink.

One Response to Great Questions from Paul Krugman

  1. Tyler says:

    “Why have profits been so strong in a weak economy?”

    Perhaps it’s because labor’s share of national income is at an all-time low.

    “Why, with profits so high, don’t businesses find reason to invest more?”

    Perhaps they’d rather use profits for executive compensation than new investment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s