Finally, note that the LFP is also a very important coincident Supercycle Period indicator (
like corporate profit margins and industrial capacity): see the up - trending arrow ending in Mar ’00 and the down - trending arrow declining since then.
Not exact matches
«Business cycles do not succumb to age alone but rather to a confluence of factors
like falling
corporate profit margins, slowing productivity growth, and a sharp rise in real policy rates into positive territory.»
Now I am clear why HIGH
profits are negative for the economy and why — unless deficit spending, money printing or QE INCREASE — then
corporate profit margins will collapse, perhaps violently
like in 2008/09 — see chart above.
Corporate culture that demands ever - expanding
profit margins simply trumps any momentary concerns for things
like environmental health or worker safety, and companies are more than capable of convincing themselves that such atrocities will never happen to them.