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Consumer Finance and Labor Exploitation

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  • Luke Lattanzi-Silveus

Abstract

Lending to the working class is increasingly becoming an essential feature in modern capitalism. Marxist theory, however, does not possess an adequate account of this phenomenon, particularly its effect on labor exploitation. This paper seeks to show how Marxist economic theory could understand and account for this form of finance. It finds that lending to the working class enables increases in both absolute and relative surplus value. JEL Classification: B51, G21, J50

Suggested Citation

  • Luke Lattanzi-Silveus, 2019. "Consumer Finance and Labor Exploitation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 95-110, March.
    • Handle: RePEc:sae:reorpe:v:51:y:2019:i:1:p:95-110
    DOI: 10.1177/0486613417707530
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    References listed on IDEAS

    as
    1. Bruce D. Meyer & James X. Sullivan, 2013. "Consumption and Income Inequality and the Great Recession," American Economic Review, American Economic Association, vol. 103(3), pages 178-183, May.
    2. Mark Aguiar & Mark Bils, 2015. "Has Consumption Inequality Mirrored Income Inequality?," American Economic Review, American Economic Association, vol. 105(9), pages 2725-2756, September.
    3. Charles Steindel, 2007. "How worrisome is a negative saving rate?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 13(May).
    4. Jonathan D. Fisher & David S. Johnson & Timothy M. Smeeding, 2013. "Measuring the Trends in Inequality of Individuals and Families: Income and Consumption," American Economic Review, American Economic Association, vol. 103(3), pages 184-188, May.
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    More about this item

    Keywords

    finance; Marxist economics; labor and workers; surplus value and economic surplus;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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