Title The American Economy
Subtitle A European View
Author Anton Brender, Florence Pisani
ISBN 9789461386755
List price USD 24.00
Price outside India Available on Request
Original price
Binding Paperback
No of pages 136
Book size 165 x 229 mm
Publishing year 2018
Original publisher Brookings Institution Press
Published in India by Brookings Institution Press
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
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Each year, 25% of the world’s output is produced by less than 5% of the planet’s population. The juxtaposition of these two figures gives an idea of the power of the American economy. Not only is it the most productive among the major developed economies, but it is also a place where new products, services and production methods are constantly being invented. Even so, for all its efficiency and its capacity for innovation, the United States is progressively manifesting worrying signs of dysfunction. Since the 1970s, the American economy has experienced increasing difficulty in generating social progress. Worse still, over the past twenty years, signs of actual regression are becoming more and more numerous. How can this paradox be explained? Answering this question is the thread running throughout the chapters of this book.

Anton Brender and Florence Pisani, economists with Candriam Investors Group, offer the reader an overview of the history and structure of the American economy, guided by a concern to shed light on the problems it faces today.




Chapter 1. A trailblazing economy • An exemplary economic trajectory • An aversion to public intervention • The social advances of the New Deal • The war on poverty • Social progress running out of steam • The end of the American dream

Chapter 2. ‘Tertiarisation’ of income • The role of household consumer spending • A decline in the importance of purchases of consumer goods • Stability of spending on housing • The increasing importance of financial services • … and of healthcare services • The role of corporate demand • The contribution of outsourcing to the intermediate consumption of services • The role of openness to foreign trade • Pressure concentrated on the manufacturing wage bill

Chapter 3. Employment tendencies and widening inequalities • The polarisation of job creation • Growth in employment due to the services sector alone • Job creation in low-remuneration sectors but for high-remuneration activities • The laborious emergence of a ‘new middle’ • Factors underlying an increased divergence of wage levels • Technical progress and the ‘education ‘premium’ • ‘Firm premiums’ • Weakened trade unions • Erosion of the minimum wage • Ever-increasing – and more enduring – inequalities • Inequalities heightened by the concentration of income from capital • Inequalities only slightly diminished by mobility • The determining role played by full employment in the evolution of the lowest incomes

Chapter 4. Fiscal policy under constraint • State and local authority budgets and the federal budget • The build-up of social programmes • Income tax and social contributions, the principal resources of the federal government • Public budgets and the redistribution of national income • Redistribution among the federated states • …essentially through differing contributions to the federal budget • Inter-household redistribution more through taxes than through transfers • Major social programmes with fairly evenly distributed benefits • Social assistance reduced to basic needs • The budget as instrument for maintaining full employment • From the Keynesianism of the 1960s • … to the Reaganism of the 1980s • The federal budget, ‘stabiliser of last resort’ for activity

Chapter 5. Overstretched monetary policy • Household borrowing at the heart of economic regulation • A mechanism for the transmission of monetary policy • A (short-lived) golden age of monetary policy • The Fed learns how to communicate with the bond markets • The bond market becomes a powerful stabiliser of activity • A continuous rise in household borrowing, in response to deflationary pressures • An accumulation of excess and imprudence • Increasingly relaxed lending norms • A steady climb in real estate prices • Blind faith in market discipline • A catastrophic outturn

Chapter 6. Lost dynamism? • Weakened growth potential • A distinct slowdown in the growth of manpower supply • Weaker productivity gains • … due in particular to weaker total factor productivity • A low-pressure economy • Limited budgetary support • Problems with the transmission of monetary policy • An emergency monetary policy • Desperately weak growth • The American model called into question • Going back on trade liberalisation: no easy task • The supply-side chimera walks again • No going back to greater social solidarity



Target Audience:

People interested in American Economy.

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