Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

Capitalism and Society

A Journal of the Center on Capitalism and Society

Ed. by Phelps, Edmund / Bhidé, Amar

SCImago Journal Rank (SJR) 2014: 0.285
Source Normalized Impact per Paper (SNIP) 2014: 1.534
Impact per Publication (IPP) 2014: 1.000

See all formats and pricing
In This Section

Will Limited Needs Kill Capitalism?

Gilles Saint-Paul
  • Université des Sciences Sociales de Toulouse
Published Online: 2006-05-22 | DOI: https://doi.org/10.2202/1932-0213.1000

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.

Keywords: growth; income distribution; bounded needs; monopolistic competition; inequality; wages; globalization; innovation

About the article

Published Online: 2006-05-22

Citation Information: Capitalism and Society, ISSN (Online) 1932-0213, DOI: https://doi.org/10.2202/1932-0213.1000. Export Citation

Comments (0)

Please log in or register to comment.
Log in