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Goodwin Cycle

Predator-prey of capitalism. Employment v hunts wage share u: dv/dt=v(α−w−β·u), du/dt=u(γ·v−ρ). Closed orbits in (v,u) plane: high employment → wages rise → profits fall → investment falls → employment falls.

t0.0
v employment
u wage share
v* fixed pt
u* fixed pt