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#247003
Scot Griffin
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I am a little confused by the conclusion that “(2) the relative power of U.S. capital continues to wane,”  which appears to be based on your discussion regarding Figure 3 and “net profit shares. ”

I thought power (and, therefore, relative power) is determined by market value (i.e., capitalization), not by net profit shares (i.e., earnings multiplied by the number of shares outstanding).  By factoring out share price, you’ve eliminated any consideration of differential discount rates and differential “hype,” which conceivably could result in lesser profits representing greater power. What do the relative market capitalization data show?