Relation of Unemployment to the Ratio of Net-Investment/Net-Profits Several OECD and BRICS Countries Germany

Rate of Unemployment

Unemployment as a Function of the Investment/Profit Ratio Germany 1950-2010 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

12% 10% 8% 6% 4%

f(x) = -0,16x + 0,12 R² = 0,73

2% 0% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Net-Investment/Net-Profit Ratio

France

Unemployment as a Function of Net-Investment/Net-Profits France 1955-2009 Net-Investment as % of Net Profits Linear Regression for Net-Investment as % of Net Profits

Rate of Unemployment

12% 10% 8% 6% 4% 2% 0% 20%

f(x) = -0,25x + 0,17 R² = 0,84

25%

30%

35%

40%

45%

50%

Net-Investment/Net-Profits 1

55%

60%

65%

70%

Italy

Unemployment as a Function of Net-Investment/Net-Profits Italy 1970-2009 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

Rate of Unemployment

14% 12% 10% 8% 6% 4%

f(x) = -0,13x + 0,12 R² = 0,41

2% 0% 5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Net-Investment/Net-Profits

UK

Unemployment as a Function of Net-Investment/Net-Profits U.K. 1970-2009 14%

Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

Rate of Unemployment

12% 10% 8% 6% 4% 2% 0% 10%

f(x) = -0,18x + 0,12 R² = 0,47 15%

20%

25%

30%

35%

40%

Net-Investment/Net-Profits

2

45%

50%

55%

60%

Japan

Unemployment as a Function of Net-Investment/Net-Profits Japan 1970-2009 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

Rate of Unemployment

6% 5% 4% 3% 2%

f(x) = -0,05x + 0,05 R² = 0,81

1% 0% 0%

10%

20%

30%

40%

50%

60%

70%

80%

Net-Investment/Net-Profits

Canada

Unemployment as a Function of Net-Investment/Net-Profits Canada 1970 - 2010 14%

Rate of Unemployment

12%

Net-Investment as % of Net Profits Linear Regression for Net-Investment as % of Net Profits

10% 8% 6% 4%

f(x) = -0,08x + 0,11 R² = 0,2

2% 0% 15%

20%

25%

30%

35%

40%

45%

Net-Investment/Net-Profits

3

50%

55%

60%

Canada 1970 - 1992

Unemployment as a Function of Net-Investment/Net-Profits Canada 1970 - 1992 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

14%

Rate of Unemployment

12% 10% 8% 6% f(x) = -0,21x + 0,18 R² = 0,65

4% 2% 0% 25%

30%

35%

40%

45%

50%

55%

60%

Net-Investment/Net-Profits

Russian Federation

Unemployment as a Function of Net-Investment/Net-Profits Russian Federation 1989-2009 Net-Investment as % of Net Profits Linear Regression for Net-Investment as % of Net Profits 14%

Rate of Unemployment

12% 10% 8% 6% f(x) = -0,07x + 0,11 R² = 0,48

4% 2% 0% -30%

-20%

-10%

0%

10%

20%

30%

40%

Net-Investment/Net-Profits

4

50%

60%

70%

U.S. 1970 – 1984

Unemployment as a Function of Net-Investment/Net-Profits U.S. 1970-1984

Rate of Unemployment

12%

Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

10% 8% 6% 4%

f(x) = -0,26552x + 0,16942 R² = 0,79958

2% 0% 28%

30%

32%

34%

36%

38%

40%

42%

44%

46%

Net-Investment/Net-Profits

US 1984 – 2009

Unemployment as a Function of Net-Investment/Net-Profits U.S. 1984-2009 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

10%

Rate of Unemployment

9% 8% 7% 6% 5% 4% f(x) = -0,13x + 0,09 R² = 0,36

3% 2% 1% 0% 5%

10%

15%

20%

25%

Net-Investment/Net-Profits

5

30%

35%

40%

U.S. 1986 – 2009

Unemployment as a Function of Net-Investment/Net-Profits U.S. 1986-2009 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

10%

Rate of Unemployment

9% 8% 7% 6% 5% 4%

f(x) = -0,17028x + 0,10432 R² = 0,66549

3% 2% 1% 0% 5%

10%

15%

20%

25%

Net-Investment/Net-Profits

Copyright © 2011 Klaus Hagendorf. All Rights Reserved!

6

30%

35%

40%

U.S. 1970 - 2009

Unemployment as a Function of Net-Investment/Net-Profits U.S. 1970-2009 Unemployment as % of Civilian Employees Linear Regression for Unemployment as % of Civilian Employees

Rate of Unemployment

12% 10% 8% 6% 4%

f(x) = -0,05x + 0,08 R² = 0,07

2% 0% 5%

10%

15%

20%

25%

30%

35%

Net-Investment/Net-Profits

7

40%

45%

50%