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Capacity utilization has a limit expressed with this equation...
labor share index*0.76/(1 - unemployment rate)
The reason for this limit is found in the balance between labor and capital. The real share to labor is expressed by the limit. If capacity utilization goes over that share, then capitalists begin to consume their own income for production. The result is falling profits in the aggregate.
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UT Index (measure of slack):
z-vertical:
z derivatives in terms of labor & capital:
Effective Demand, real GDP & Potential GDP:
ED Output Gap:
Corporate profit rate over real cost of money:
Exponential decay of Inflation:
Measures of Inflation:
YoY Employment change:
Speed of consuming slack: yoy monthly:
Speed of consuming slack: quarterly:
Real consumption per Employee:
Will real wages ever rise faster than productivity?:
Productivity:
Productivity against Effective Demand limit:
Bottom of Initial Claims?:
Tracking inflation expectations:
M2 velocity still falling:
All in one:
Double checking labor share with unit labor costs & inflation:
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