Because a significant proportion of the capital is not being committed to a productive process. Thus the proportion of capital to labour has not risen or if it has it has not risen sufficiently to create a shortage in the labour market. What remains is being speculated rather than utilised.
Simon Ward ----- Original Message ----- From: "Michael Perelman" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Saturday, October 13, 2007 9:22 PM Subject: [PEN-L] Savings Glut Conundrum
If there is a global savings glut, why does capital get such a big share of the pie? If finance is so abundant, why is there not great competition for labor, bidding up wages? -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
