1 Motivation
Some conundrums have arisen in the development of profit-led versus wage-led
growth models. We are concerned with the characterization of modern capitalism
along this axis. Thus, the description of contemporary western economies as
profit-led means that a fall in wages and a corresponding increase in profits entail
sufficient investment demand to compensate for the expected fall in consumption
demand. However, falling wage shares have not correlated with high investment
(Kapeller and Schütz 2015).