Accumulation under Conditions of Inequality

In: Review of international political economy: RIPE, Band 8, Heft 1, S. 66-95

Abstract

This paper presents a Keynesian analysis of accumulation under conditions of inequality in the UK & US where household savings are channeled into corporate securities. This form of saving is dominated by the comfortable classes in upper income households whose behavior indirectly encourages the UK & US corporate sectors into merger & acquisition. A broader discussion of trajectory & results brings out the risk of instability in a coupon pool type of capitalism where the stock market operates like a giant Ponzi scheme. In the UK & US cases, the policy implication is that it is foolish to give the stock market a larger role in provision for retirement through schemes that encourage or enforce increased savings by lower income groups. 10 Tables, 2 Figures, 21 References. Adapted from the source document.