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/lp/springer-journals/a-theory-of-accumulation-and-secular-stagnation-a-malthusian-approach-eQ8Ddy0Ri5
- Publisher
- Palgrave Macmillan US
- Copyright
- © The Editor(s) (if applicable) and The Author(s) 2016
- ISBN
- 978-1-349-71984-6
- Pages
- 1 –8
- DOI
- 10.1057/9781137562210_1
- Publisher site
- See Chapter on Publisher Site
Abstract
[This book explores and extends Thomas Malthus’s idea that if an economically significant group saves a large portion of income it plans never to spend, it will cause a deficiency in demand that prevents a market economy from operating at full employment on a sustainable basis—Accumulation is the portion of saving that is intended never to be spent. Accumulation causes secular stagnation—a condition of low growth and underemployment of resources and it provides fertile ground for periodic, but unsustainable, booms. Accumulation places bounds on possible outcomes; actual outcomes depend upon the institutional structure of the economy and the expectations of its participants. Malthus’s idea is coherent—contrary to the conventional wisdom—and it can be used to understand the cause of the low growth and tepid employment, periodically punctuated by booms, that has plagued the US economy since the turn of the millennium. It is explained that offshore mercantilists—principally China—and top income earners has been driving Accumulation in the US economy in recent decades.]
Published: Aug 5, 2016