THE CRISIS OF POSITIVE-SUM CAPITALISM by Chris Dillow

THE CRISIS OF POSITIVE-SUM CAPITALISM by Chris Dillow

- With savings low and debt high, households might respond to higher wages by saving more. If so, we’ll not get higher aggregate demand and hence incentives to invest. There’s a warning here from the 70s. One reason why the positive-sum game broke down then was that workers saved increasing proportions of their wages. 

These doubts don’t make me side with neoliberalism. They just make me think that wage-led growth is nothing like sufficient.