Wednesday, March 28, 2012

Thomas Palley's Book On The Little Depression: review



I have been reading Thomas Palley's new book, From Financial Crisis to Stagnation: The Destruction of Shared Prosperity and the Role of Economics. He argues that the ongoing crisis is not just a downturn in the business cycle, but the manifestation of the exhaustion of the neoliberal paradigm for economic growth1. Palley points to underlying structural contradictions, such as the role of consumer debt in the United States of providing the mass-based aggregate demand for consumption no longer sustainable when the overwhelming majority of workers do not participate in income gains from improving productivity. The expanded power of the less-regulated financial sector fits nicely into this thesis. Palley also discusses flaws in how the United States has come to fit into the global economy.
Read it at Thoughts on Economics
Thomas Palley's Book On The Little Depression
by Rober Vienneau


2 comments:

Ryan Harris said...
This comment has been removed by the author.
Mike Norman said...

When I had my radio show I had Palley on as a guest several times. He's good.