Economic Stagnation Postponed

Geert Reuten

International Journal of Political Economy, 2011, vol. 40, issue 3, 50-58

Abstract: The significant increase since the early 1980s in the share of income accruing to capital (rather than labor), in both the United States and the European Union, created the potential for economic stagnation. Stagnation was postponed, however, by the development of the banking sector in these countries, notably in the increasing amounts of credit granted to wage earners. To the extent that such lending will be curtailed in the aftermath of the recent financial-economic crisis, stagnation looms. Within the confines of capitalism, this dilemma can be overcome only by making a significant shift in the macroeconomic pattern of income distribution to realign consumption with income. While particular banks and banking policies are usually blamed for the crisis and indeed played an important role, the roots of the crisis are located at a deeper level. The implication is that the economic problems we face will be much more difficult to overcome than the usual analyses suggest.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.2753/IJP0891-1916400304 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:ijpoec:v:40:y:2011:i:3:p:50-58

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MIJP20

DOI: 10.2753/IJP0891-1916400304

Access Statistics for this article

More articles in International Journal of Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().