Family Crest

Family Crest
Motto: I will never forget. [ Source HouseofNames ]

HUMANITY DOOMSDAY CLOCK - Moves forward to 2125 due to election of US President trump.

Estimate of the time that Humanity will go extinct or civilization will collapse. The HUMANITY DOOMSDAY CLOCK moves forward to 2125 due to US President trump's abandonment of climate change goals. Apologies to Bulletin of the Atomic Scientists for using the name.


While this material is copyrighted, you are hereby granted permission and encouraged to copy and paste any excerpt and/or complete statement from any entry on this blog into any form you choose. In return, please provide explicit credit to this source and a link or URL to the publication. Email links to

You may also wish to read and quote from these groundbreaking essays on economic topics with the same permission outlined above

The Jobs Theory of Growth []

Moral Economics []

Balanced Trade []

There Are Alternatives to Free Market Capitalism []

Specific Country Economic Policy Analyses - More Than 50 Countries from Argentina to Yemen []


Tuesday, July 23, 2019

Is There Too Much Capital ?

Most economists recognize that income inequality is too high and problematic for the well-being of the population.

That is true today regardless of which country is considered.

One of the secondary effects of high income inequality is a rise in savings; people with high incomes have extra cash to save or invest.

The ratio of Bank Deposits to GDP is about 60% for Brazil and over 80% for the USA. The St. Louis FED has prepared charts which are available at these links:



There is so much cash floating in the banking systems that interest rates have fallen to just about zero. It can be argued that interest rates this low obscure the real cost of projects and encourage marginal investments.

Interestingly, the marginal income tax rate in the US was cut from 70% in 1984 to under 30%. The current USA marginal tax rate is about 39%

The ratio of bank deposits to GDP peaked at about 70% then, fell to historical levels of about 55% in 1995 and then rose to current levels.

No comments:

Post a Comment