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The United States Economy at the Turn of the Century: Entering a New Era of Prosperity?:

The United States Economy at the Turn of the Century: Entering a New Era of Prosperity?: This paper argues that the US economy is not entering a new era of prosperity, mainly because the rate of profit remains 30-40% below its earlier postwar peaks, in spite of a 20% reduction of real wages since the early 1970s. Under these conditions, real wages are unlikely to increase very much (if at all) in the years ahead. The paper also argues that an important reason for the acceleration of growth in the US economy since 1995 is a large and rapidly increasing net inflow of foreign capital (which also precipitated the worsening depression in Asia). The final section argues that the chances of a recession in the US in 1999 are high, and that such a depression would probably propel the world capitalist economy into deep depression. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Capital and Class SAGE

The United States Economy at the Turn of the Century: Entering a New Era of Prosperity?:

Capital and Class , Volume 23 (1): 21 – Sep 11, 2016

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References (32)

Publisher
SAGE
Copyright
Copyright © 2019 by The Conference of Socialist Economists Ltd
ISSN
0309-8168
eISSN
2041-0980
DOI
10.1177/030981689906700102
Publisher site
See Article on Publisher Site

Abstract

This paper argues that the US economy is not entering a new era of prosperity, mainly because the rate of profit remains 30-40% below its earlier postwar peaks, in spite of a 20% reduction of real wages since the early 1970s. Under these conditions, real wages are unlikely to increase very much (if at all) in the years ahead. The paper also argues that an important reason for the acceleration of growth in the US economy since 1995 is a large and rapidly increasing net inflow of foreign capital (which also precipitated the worsening depression in Asia). The final section argues that the chances of a recession in the US in 1999 are high, and that such a depression would probably propel the world capitalist economy into deep depression.

Journal

Capital and ClassSAGE

Published: Sep 11, 2016

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