OECD: Everything would be simpler if income distribution was normal
For 20 years, income distribution has been skewed at the expense of employees in OECD countries, which has led to an abnormally high corporate profit rate since the self-financing rate (the ratio of cash flows to investment) is markedly higher than 100%. But, instead of returning to a normal income distribution with a corrective increase in wages that would not have any negative effect on investment, OECD countries prefer to stimulate demand through fiscal deficits and zero interest rates. It seems absurd to take the risk of increasing public debt and the risk related to the dangerous effects of zero interest rates instead of returning to normal income distribution.