Declining Profitability and the Evolution of the US Economy
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€192.20
A01=Ascension Mejorado
A01=Manuel Roman
Author_Ascension Mejorado
Author_Manuel Roman
Average Profit Rate
Average Real Gdp Growth Rate
Business Sector
capital accumulation profitability trends
Capital Accumulation Rate
Capital Labor Accord
Category=KCA
Category=KCP
Category=KCZ
deindustrialisation impacts
Economy
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_isMigrated=2
eq_nobargain
eq_non-fiction
Falling Interest Rates
Federal Reserve
financialisation effects
Gdp Growth
Gdp Growth Rate
Growth
Labor Productivity Growth
labour market dynamics
Net Capital Stock
Net Interest Margins
Net Operating Surplus
Nipa Table
Non-financial Corporate Sector
Nonfinancial Corporate
Nonfinancial Corporate Business
Nonfinancial Corporate Sector
Nonfinancial Sectors
Political
political economy theory
Power
Profit
Profit Rate
Profitability Trend
Real Hourly Earnings
Rising Profit Shares
Secular Stagnation
secular stagnation debate
stagflation analysis
Stagflation Crisis
United States
Product details
- ISBN 9781032538150
- Weight: 730g
- Dimensions: 156 x 234mm
- Publication Date: 01 Sep 2023
- Publisher: Taylor & Francis Ltd
- Publication City/Country: GB
- Product Form: Hardback
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The 1970s were a pivotal decade for the US economy: deindustrialization broke the power of the labor unions and made possible the redistribution of income in favor of corporate profits; globalization and offshore investments opened alternatives to domestic nonfinancial capital accumulation; domestic productivity growth declined; and labor-saving technology empowered superstar corporations to rapidly gain market share. This book argues that the persistent fall in profitability, leading to the stagflation crisis, was a direct result of the transition from the Fordist phase of capital accumulation, based on large-scale manufacturing, to the neoliberal phase and the rising power of finance. Neoliberalism restored the power of rentiers but not the profit rates of nonfinancial corporations. Falling accumulation rates weakened the growth capacity of nonfinancial corporate firms and secular stagnation became the norm. Neo-Keynesian economists, Larry Summers and Paul Krugman, explained the persistence of secular stagnation with arguments borrowed from Alvin Hansen in the 1930s, such as the declining birth rate or the falling relative prices of investment goods, hence a shortfall of demand. In the Classical paradigm, profitability drives capital accumulation and falling profitability slows down growth. As the accumulation rate declined and the capacity growth diminished, breakdowns in supply links, due to the COVID-19 pandemic, prevented large infusions of purchasing power to find matching levels of supply, hence the stagflation crisis returned. The book will be a great asset to researchers and scholars interested in the development of Classical Political Economy concerning issues related to inflation, stagnation, growing inequality, and the next phase of neoliberalism.
Ascension Mejorado is Clinical Professor and Economics Faculty Chair in the Liberal Studies program at New York University, USA. She is co-author with Manuel Roman of Profitability and the Great Recession: The Role of Accumulation Trends in the Financial Crisis (Routledge).
Manuel Roman taught economics at New Jersey City University, USA, for over 25 years and is now retired. He is co-author with Ascension Mejorado of Profitability and the Great Recession: The Role of Accumulation Trends in the Financial Crisis (Routledge). He is the solo author of Heterodox Views of Finance and Cycles in the Spanish Economy and Growth and Stagnation of the Spanish Economy: the Long Wave, 1954-1993.
