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A case for redistribution? income inequality and wealth concentration in the recent crisis

A case for redistribution? income inequality and wealth concentration in the recent crisis

Goda, Thomas, Onaran, Özlem ORCID: 0000-0002-6345-9922 and Stockhammer, Engelbert (2014) A case for redistribution? income inequality and wealth concentration in the recent crisis. [Working Paper]

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Abstract

Several Nobel laureates economists have called for redistributive policies. This paper shows that there is a strong case for redistributive policies because the global increase of income inequality and wealth concentration was an important driver for the financial and Eurozone crisis. The high levels of income inequality resulted in balance of payment imbalances and rising debt levels. Rising wealth concentration contributed to the crisis because the increasing asset demand from the rich played a key role in the rise of the structured credit market and enabled poor and middle-income households to accumulate increasing amounts of debt. To tame the inherent instability of the current mode of capitalism it is necessary to reduce inequality.

Item Type: Working Paper
Uncontrolled Keywords: financial crisis; eurozone crisis; distribution; income inequality; wealth concentration; redistribution
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Related URLs:
Last Modified: 19 Nov 2015 15:04
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/14056

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