Capitalists, Workers, and Managers

Daniele TavaniRamaa Vasudevan
Written By SCEPA

WORKING PAPER

DOWNLOAD PDF

(1.29 MB)

This paper presents a simple three-class model in the Kaleckian tradition to investigate the implications of a dominant managerial class class for the dynamics of demand and distribution.

The main distributional implication of the wage squeeze produced by inequality is that the effect of redistribution toward workers in both the low-investment response regime and and the high investment response regime leads to declining inequality and capacity utilization. Hence, in both regimes, the inequality–led character of the equilibrium overcomes the stagnationist or exhilarationist features of effective demand.

SCEPA
Previous

The Crisis of Jobs and Healthcare for Unemployed Americans Aged 55-64
Next

Minimum Wage Policy and Employment in the U.S. and France