Add to ORKGWhy has the U.S. economy been so sluggish to return to growth in the aftermath of the Great Recession of the late 2000s? In new research, Barry Z. Cynamon and Steven M. Fazzari find that the current level of household demand is more than 17 percent lower than its pre-recession trend, preventing a stronger recovery. They argue that in the lead up to the Great Recession, households compensated for rising inequality and stagnant wages by borrowing more, something that became unsustainable when the financial crisis hit. For the U.S. to achieve robust growth rates once again, the gap in demand that opened with the collapse of household spending in the Great Recession will have to be closed, preferably through wage growth across the board
Rising inequality reduced income growth for the bottom 95 percent of the income distribution beginni...
It is widely believed that the current economic slowdown will be mild and temporary in nature, the r...
This brief argues that increasing inequality had deep macroeconomic consequences as it contributed, ...
The U.S. housing market recovery following the Great Recession has in many ways been atypical of ear...
Today's weakness in the US economy results from lack of aggregate demand, due to high and growing in...
The US economy has been expanding moderately since the official end of the Great Recession in 2009. ...
The Great Recession, which began in 2008, was an economic upheaval the likes of which had not been s...
Wealth inequality in the United States increased over the last several decades and worsened as a res...
While we celebrate the beginning of the end of the era of zero interest rates, the US economy can ha...
Productivity growth—a necessary (though not sufficient) condition for rising incomes in the long run...
Income inequality has been relatively neglected in mainstream macroeconomics until recently, when th...
The American economy could recover much faster from the Great Recession, and our young people could ...
Income and economic equality have been on the rise in recent decades – but has this trend been fuell...
The most widely embraced explanations of the financial crisis of 2008 have centered upon inadequate ...
The corona virus pandemic has dramatically changed the economic outlook for the United States and ma...
Rising inequality reduced income growth for the bottom 95 percent of the income distribution beginni...
It is widely believed that the current economic slowdown will be mild and temporary in nature, the r...
This brief argues that increasing inequality had deep macroeconomic consequences as it contributed, ...
The U.S. housing market recovery following the Great Recession has in many ways been atypical of ear...
Today's weakness in the US economy results from lack of aggregate demand, due to high and growing in...
The US economy has been expanding moderately since the official end of the Great Recession in 2009. ...
The Great Recession, which began in 2008, was an economic upheaval the likes of which had not been s...
Wealth inequality in the United States increased over the last several decades and worsened as a res...
While we celebrate the beginning of the end of the era of zero interest rates, the US economy can ha...
Productivity growth—a necessary (though not sufficient) condition for rising incomes in the long run...
Income inequality has been relatively neglected in mainstream macroeconomics until recently, when th...
The American economy could recover much faster from the Great Recession, and our young people could ...
Income and economic equality have been on the rise in recent decades – but has this trend been fuell...
The most widely embraced explanations of the financial crisis of 2008 have centered upon inadequate ...
The corona virus pandemic has dramatically changed the economic outlook for the United States and ma...
Rising inequality reduced income growth for the bottom 95 percent of the income distribution beginni...
It is widely believed that the current economic slowdown will be mild and temporary in nature, the r...
This brief argues that increasing inequality had deep macroeconomic consequences as it contributed, ...