IDEAS home Printed from https://ideas.repec.org/a/mes/jeciss/v47y2013i2p505-514.html
   My bibliography  Save this article

The Great Financial Crisis and Functional Distribution of Income

Author

Listed:
  • Antoon Spithoven

Abstract

This article provides a post-Keynesian analysis of economic growth and discusses the effects of austerity measures on demand in countries where growth is wage-led. It finds that growth is predominantly wage-led in both the United States and the Eurozone, although it is profit-led in some European Union countries. Profit-led growth may flourish under austerity measures, whereas wage-led growth requires economic stimuli (and reforms) to address an economic downturn. The dominant policies of addressing the great financial crisis currently are austerity measures to deleverage balance sheets, incidental interventions to save banks, and market reforms. However, these policies ignore the effects of the functional distribution of income on growth and are not likely to turn the tide in economies where growth is wage-led. Distribution of income cannot be left to marketmechanisms alone. A decent society requires a government policy of income distribution.

Suggested Citation

  • Antoon Spithoven, 2013. "The Great Financial Crisis and Functional Distribution of Income," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 505-514.
    • Handle: RePEc:mes:jeciss:v:47:y:2013:i:2:p:505-514
    DOI: 10.2753/JEI0021-3624470224
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/JEI0021-3624470224
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/JEI0021-3624470224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:47:y:2013:i:2:p:505-514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MJEI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.