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Big Profits Drove a Stock Boom. Did the Economy Pay a Price?

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Thursday 11:48 GMT
Category: Economy

In this economy, stock prices don’t just reflect the future stream of normal economic returns that would accrue to a company’s capital investment.

The scholars argue that the American economy is afflicted by “rents” — returns in excess of what investments would yield in a competitive economy, where fat margins are quickly whittled away by competition.


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