Under-Consumption and the Accumulation Motive

Thomas Palley

Review of Radical Political Economics, 1993, vol. 25, issue 1, 71-86

Abstract: This paper presents a theory of individual behavior in which the drive to accumulate wealth is a critical motive behind economic action. The suggested theory is fully consistent with the neoclassical approach to choice, subject only to displacing the traditional hedonistic interpretation. When this theory of individual behavior is placed in the context of a self-interest private property economy in which individuals accumulate wealth in the form of financial claims (intermediated accumulation) and firms maximize profits, it generates a logical explanation of the causes of effective demand failures.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:25:y:1993:i:1:p:71-86

DOI: 10.1177/048661349302500104

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