What Non-inclusive Growth Looks LIke - Effective Demand

If you want to see the dynamics of how labor gets marginalized in an economy.

What Non-inclusive Growth Looks LIke - Effective Demand

  In a previous post, I presented the basic model of Effective demand. Now I want to apply that model to the growth of an economy. But I am going to show the dynamics of a specific kind of growth... Non-inclusive growth. In this type of growth, labor's share of income does not rise as real GDP rises.
Of course, labor income will rise because real GDP is rising, but the % share of national income will not rise for labor. With this distinction we can proceed.
Let's start with a graph showing an economy with a real GDP of $2 trillion, a business cycle amplitude of $3 trillion, a capacity utilization rate of 62%, an effective labor share rate of 60% and an unemployment rate of 6%. (money in real $ terms). Here is what it looks like...