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

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  • Carles Manera
  • Ferran Navinés
  • Javier Franconneti

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.

Suggested Citation

  • Carles Manera & Ferran Navinés & Javier Franconneti, 2017. "United States of America, European economy and inequality: A perspective from the economic history, 1910-2010," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 14(1), pages 59-87, June.
    • Handle: RePEc:liu:liucej:v:14:y:2017:i:1:p:59-87
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    business cycle; rate of profit; business profits; capital productivity; economic inequality; European Union; United States; Piketty;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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