Inequality and the Anglo-American Economic Model
The rollback of the state and the redistribution initiated during the Reagan-Thatcher period in the US and Britain has resulted in these countries being the least egalitarian in the OECD, with wages increasingly de-coupled from productivity growth and gains accruing to top CEOs. The view that inequality is attributable solely to the new premium on human capital is challenged; it is argued that inequality has resulted from mainly from personal tax breaks and the corporate drive for ‘shareholder value’. The social costs are evident from the sociological and epidemiological evidence. Equally, inequality has helped fuel US consumer spending, facilitated by low interest rates, holding gains and credit deregulation. The result is a ‘triple deficit’. The risk is that by relying exclusively on market-led devaluation, a crisis of confidence will result; righting financial imbalances requires not merely a Plaza-type solution, but a major reversal in the growth of inequality.
|Date of creation:||Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 011 6706060
Fax: +39 011 6706062
Web page: http://www.esomas.unito.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Piketty, Thomas & Saez, Emmanuel, 2006. "How Progessive is the US Federal Tax System? An Historical and International Perspective," CEPR Discussion Papers 5778, C.E.P.R. Discussion Papers.
- John Schmitt & Ben Zipperer, 2006. "Is the U.S. a Good Model for Reducing Social Exclusion in Europe?," CEPR Reports and Issue Briefs 2006-17, Center for Economic and Policy Research (CEPR).
- Stiglitz, Joseph E, 1969.
"Distribution of Income and Wealth among Individuals,"
Econometric Society, vol. 37(3), pages 382-97, July.
- Joseph E. Stiglitz, 1967. "Distribution of Income and Wealth Among Individuals," Cowles Foundation Discussion Papers 238, Cowles Foundation for Research in Economics, Yale University.
- Dew-Becker, Ian & Gordon, Robert J, 2005.
"Where did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income,"
CEPR Discussion Papers
5419, C.E.P.R. Discussion Papers.
- Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income," NBER Working Papers 11842, National Bureau of Economic Research, Inc.
- McKinnon, Ronald & Schnabl, Gunther, 2006. "Devaluing the dollar: A critical analysis of William Cline's case for a New Plaza Agreement," Journal of Policy Modeling, Elsevier, vol. 28(6), pages 683-694, September.
- Frydman, Carola & Jenter, Dirk, 2010.
2069, Stanford University, Graduate School of Business.
- Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did Productivity Growth Go? Inflation Dynamics and the Distribution of Income," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(2), pages 67-150.
- Papatheodorou, Christos & Pavlopoulos, Dimitris, 2003. "Accounting for inequality in the EU: Income disparities between and within member states and overall income inequality," MPRA Paper 209, University Library of Munich, Germany.
- Offer, Avner, 2007. "The Challenge of Affluence: Self-Control and Well-Being in the United States and Britain since 1950," OUP Catalogue, Oxford University Press, number 9780199216628, March.
When requesting a correction, please mention this item's handle: RePEc:icr:wpicer:26-2007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simone Pellegrino)
If references are entirely missing, you can add them using this form.