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Distribution and accumulation in post-1980 advanced capitalism

Author

Listed:
  • Aldo Barba

    (Università di Napoli 'Federico II')

  • Massimo Pivetti

    (Università di Roma 'La Sapienza')

Abstract

The paper tries to build a framework of the interconnections between income distribution and accumulation for the years after 1980. On the basis of this framework it is argued that it was primarily the weakening of the inducements to invest that improved the attractiveness of financial investments, rather than the other way round. The overall effect on investment of financial sector enlargement was negative, but for the reason that it contributed to bring about a change in income distribution unfavourable to the expansion of demand, while permitting only a temporary disconnection of demand from the distributive change. The reader's attention is then drawn to the element of continuity that can be detected between the current European economic policy of austerity and the process of substitution of loans for wages experienced by a large section of advanced capitalism up to the 2007 crisis. The article concludes on the question of long-run social stability within advanced capitalism.

Suggested Citation

  • Aldo Barba & Massimo Pivetti, 2012. "Distribution and accumulation in post-1980 advanced capitalism," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(0), pages 126-142.
    • Handle: RePEc:elg:rokejn:v:0:y:2012:i:1:p126-142
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    References listed on IDEAS

    as
    1. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    2. Amit Bhaduri, 2011. "Financialization in the Light of Keynesian Theory," PSL Quarterly Review, Economia civile, vol. 64(256), pages 7-21.
    3. Wiemer Salverda & Ken Mayhew, 2009. "Capitalist economies and wage inequality," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(1), pages 126-154, Spring.
    4. Aldo Barba & Massimo Pivetti, 2009. "Rising household debt: Its causes and macroeconomic implications--a long-period analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(1), pages 113-137, January.
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    Citations

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    Cited by:

    1. Davide Gualerzi, 2020. "Secular Stagnation Revisited," Bulletin of Political Economy, Bulletin of Political Economy, vol. 14(1), pages 55-79, June.
    2. Massimo Pivetti, 2019. "On Interest as a Monetary Phenomenon and the ‘Best’ Interest-rate Policy," Bulletin of Political Economy, Bulletin of Political Economy, vol. 13(2), pages 167-187, December.
    3. Edoardo Beretta, 2024. "On the Inflation-Debt-Bubble “Vicious Cycle” in Times of Evolving Money—A Memorandum of Forward-Looking Lessons," Economies, MDPI, vol. 12(2), pages 1-14, January.
    4. Gonzalo Paz Pardo & José Manuel Sánchez Santos, 2014. "Household Debt and Consumption Inequality: The Spanish Case," Economies, MDPI, vol. 2(3), pages 1-24, July.

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    More about this item

    Keywords

    income distribution; accumulation; finance; austerity; social stability;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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