Volume 7 (2012)
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- Capital Markets and Financial Politics: Preferences and Institutions by Roe, Mark J.
- Implementing a Macroprudential Framework: Blending Boldness and Realism by Borio, Claudio
- The Historical Origins of 'Open Science': An Essay on Patronage, Reputation and Common Agency Contracting in the Scientific Revolution by David, Paul A.
- Household Debt in the Consumer Age: Source of Growth--Risk of Collapse by Cynamon, Barry Z. and Fazzari, Steven M.
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Will Limited Needs Kill Capitalism?
1Université des Sciences Sociales de Toulouse
Citation Information: Capitalism and Society. Volume 1, Issue 1, ISSN (Online) 1932-0213, DOI: 10.2202/1932-0213.1000, May 2006
- Published Online:
This paper argues that a number of ``unorthodox" analyses of capitalism can be understood from the point of view of orthodox economic theory. Our argument is based on the assumptions of monopolistic competition and that utility derived from consuming an individual good is bounded. The model's predictions are consistent with some popular heterodox views, such as ``In modern capitalist society, productivity is so high that many people are nearly saturated with goods;" ``Productivity growth reduces the real consumption wage of workers;" and ``The benefits from growth are appropriated by symbol manipulators." Furthermore, depending on relative levels of product diversity and physical productivity, globalization may harm poorer workers in LDCs, rather than unskilled workers in developed countries, as is usually predicted.