Secular stagnation, low growth, and financial instability
Luiz Carlos Bresser-Pereira
Paper submetido ao International Journal of Political Economy.
Rentier-financier capitalism, neoliberalism and globalization have been in crisis since 2008. It is characterized by low growth rates, quasi-stagnant wages and increase of inequality since rentiers replaced business entrepreneurs, neoliberalism became the hegemonic ideology, and globalization became the means to achieve the best of all possible worlds. But the rich capitalist world faces the threat of secular stagnation. In this paper, I discuss this threat, the main authors who have been discussing it, and the new historical facts that are behind such threat. Among the threats are the fall of the productivity of capital associated with information and communication technology, the increase of market power, the profusion of capitals, and globalization, that opened room for the successful competition of developing countries. These new historical facts don't cause stagnation, but low growth rates and general uneasiness.