"Over the last century each financial crisis had resulted in permanent, heightened corporate profits as a share of GDP; this is because the government is taking action to protect capital holders while ignoring the difficulties faced by labor. This frees capital to consolidate their gains within the system and lay the groundwork for more."
This doesn't seem to be true. Corporate profits as share of GDI/GDP historically has been pretty stable, as this graph from FRED shows: https://fred.stlouisfed.org/series/A445RE1A156NBEA
I looked at latest BEA stats for 2022 and there's not much change there either.
One thing that I found interesting was the sudden drop in personal savings. It's not what you think though: the drop is actually savings coming back down to standard levels.
When compared with historical rates it turns out that it was lockdowns that caused quite an anomaly here with as high as 26% of disposable income going into saving in the second quarter of 2020.
This is all aggregate data though, so don't tell the whole story.
Sources:
https://www.bea.gov/sites/default/files/2023-04/gdp1q23_adv.pdf
Kind of explains where all the money for #bitcoin came from.
@jackofalltrades Yep!
People with a higher relative ratio of cash on hand vs things to spend it on might be tempted into dipping toes into the water of stuff like #Bitcoin
Pandemic closures and fiscal responses set the stage for that, all through personal accounts, not corporate ones.
