Give it time. You have to look at numbers smoothed over the business cycle. Labor participation has been declining, real wages have been stagnant, the growth has been in debt and incomes of the top 10%. Debt-funded gains in capital income are prone to reversal when debt growth stops or reverses.
Federal research funding is dominant, and it is what the AAU focuses on.
Percentage, share, real funding, and nominal funding are all connected. With real growth under 2%, inflation under 2%, government spending is limited to about 3% growth in normal terms. Entitlements are growing much faster than that, meaning that discretionary spending will be declining.
I’m not sure we are even talking about the same thing anymore. Yes, you have to look at numbers smoothed over the business cycle… a macro view. Yes, labor participation has been declining - recent ‘gains’ are from people no longer seeking employment, thus not included in the unemployment figures. Yes, real wages have been stagnant.
Now you lose me.
“Growth has been in debt and incomes of the top 10%?” Growth in debt of the top 10%? Is this your point? Is this an issue?
“Debt-funded gains in capital income are prone to reversal when debt growth stops or reverses.” This isn’t even a ‘thing’. This sentence doesn’t even make sense. What kind of debt are we even talking about?
“Federal research funding is dominant” …a point with which I have already agreed.
“Percentage, share, real funding, and nominal funding are all connected.” Sure, by the word ‘funding.’ Beyond that they are dissimilar and unique.
“With real growth under 2%”…a touch low, but ok…
“Inflation under 2%” …fine…
“Government spending is limited to about 3% growth in normal terms.” Government spending increase year to year? Government funding for R&D year to year? Government spending on ‘WHAT’?
“Entitlements are growing much faster than that” …faster than that…faster than what? 3% of what?
“Meaning that discretionary spending will be declining.” ...as entitlement spending increases. Sure, as long as nothing else in the freaking country changes, like revenue increases, reductions in the size of the gov. (not likely). This is not an ‘all things being equal’ situation, this is fluid.
Look, you don’t need to reply to this. Actually, please don’t. I’ll concede the point, whatever it originally was….