The European Journal of Comparative Economics

ISSN: 1824-2979

EJCE Year: 2017, June. Volume: 14 - Issue: 1

United States of America, European economy and inequality: A perspective from the economic history, 1910-2010

by Carles Manera ; Ferran NavinÚs ; Javier Franconneti

Start page: 59 - End page: 87

Keywords: business cycle, rate of profit, business profits, capital productivity, economic inequality, European Union, United States, Piketty

Jel code: B22; B52; C40

Abstract:

This paper analyzes the impact of the Great Recession on the economies of the United States and the major economies of Europe (Germany, France, United Kingdom, Italy, Spain), based on the analysis of the national accounts of the countries chosen. The paper provides additional weight to the conclusions reached by Piketty, but using different sources: a reduction in the share of wages in national income and an increase in social inequality. This can be explained because the downward trend in capital productivity cannot be corrected, so an increase in the share of gross operating surplus in national income (q) and in social inequality is bolstered to maintain the rate of profit, a process which is accompanied by the growing financialization of the economy.

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