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Rent-seeking and asset-price inflation: a total-returns profile of economic polarization in America

Author

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  • Michael Hudson

    (Institute for the Study of Long-Term Economic Trends (ISLET), Forest Hills, NY and Research Fellow, Levy Economics Institute of Bard College, Annandale-on-Hudson, NY, USA)

Abstract

This paper reconstructs the National Income and Product Accounts to add asset-price (‘capital’) gains to national income to derive a measure of total returns. It also treats rent-extraction as a charge against national income and GDP, not as a contribution to national output. Segregating the Finance, Insurance, and Real Estate sector from the rest of the private sector shows that most growth in wealth and income derives from rentier activities – from the dynamic of finance capitalism more than that of industrial capitalism.

Suggested Citation

  • Michael Hudson, 2021. "Rent-seeking and asset-price inflation: a total-returns profile of economic polarization in America," Review of Keynesian Economics, Edward Elgar Publishing, vol. 9(4), pages 435-460, October.
    • Handle: RePEc:elg:rokejn:v:9:y:2021:i:4:p435-460
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    File URL: https://www.elgaronline.com/view/journals/roke/9-4/roke.2021.04.01.xml
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    Citations

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    Cited by:

    1. Thomas Palley, 2021. "Financialization revisited: the economics and political economy of the vampire squid economy," Review of Keynesian Economics, Edward Elgar Publishing, vol. 9(4), pages 461–492-4, October.
    2. Michael Hudson, 2021. "Finance Capitalism versus Industrial Capitalism: The Rentier Resurgence and Takeover," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 557-573, December.
    3. Pianta, Mario, 2023. "Inflation and distributive conflicts," MPRA Paper 119345, University Library of Munich, Germany.
    4. Mark R. S. Howard, 2023. "Book Reviews: Rentier Capitalism: Who Owns the Economy, and Who Pays for It?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(4), pages 728-732, December.

    More about this item

    Keywords

    FIRE sector; economic rent in the NIPA; financialization;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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