Financialization, Household Credit And Economic Slowdown In The U.S.

Three important features of the U.S. economy during the neoliberal era since the mid-1970s have been: growing financialization, increasing household debt, and stagnant real wages for production and nonsupervisory workers. This paper develops a discrete-time Marxian circuit of capital model to analyze the links between these three features and economic slowdown. The discrete-time model is used to address two important theoretical issues of general interest to the heterodox economic tradition: profit-led versus wage-led growth, and the growth-reducing impact of non-production credit.

Provided by: University of Massachusetts Topic: Mobility Date Added: Jun 2011 Format: PDF

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