Inequality and Global Supra-surplus Capitalism (ePub)

This book is written as a sequel to John Kenneth Galbraith's The Affluent Society, and provides a theoretical framework, for the first time, for surpra-surplus capitalism.Conventional economics has the income and wealth distributions as "givens". This assumption immediately excludes such distributions from economic and social concern. Occasionally, economists such as Kenneth Boulding and even earlier, Michal Kalecki, have attempted to develop alternative perspectives in which such distributions are integral to the story and therefore have implications for public policy. At the same time, conventional microeconomics is a theory of price only in which economic efficiency (in an engineering sense) is the only value to be optimized. The income or wealth distributions are given as constraints. Mathematically, the constraints thereafter become invisible; they have no further role to play. The choices that are presumed to be made are neither inhibited nor facilitated by a household's position in the income or wealth distributions.This volume will explore problems with conventional theory and policy, but its main thrust comprises a theory of supra-surplus capitalism, applicable to both developed and developing countries, and its relation to inequalities worldwide.Figure 7.2 Percentage Changes, Investment and Profits, 1929–2015Figure 7.2 Variations in investment and GDP, 1947–2016Figure 7.3 Wages vs. Corporate Profits, as Shares of GDP 1940–2015Figure 17.10 Ratio of Median U.S. White Household Wealth to Black Household Wealth, 1983–2013Figure 19.1 Cross-Purposes: Monetary V. Fiscal Policy. Central Banks have Vastly Expanded Their Balance Sheets while Governments Tightened their Belts. Sources: St. Louis Federal Reserve (central bank assets); International Monetary Fund (deficits) The Wall Street Journal