The Pathology of the U.S. Economy: The Costs of a Low-Wage System

Product Description This book demonstrates the calamitous consequences of the current U.S. policies that follow a Haitian model of low-wage development. The author makes his case by describing the decades-long unfolding of the current crisis in the U.S. economy following the postwar boom. From the beginning, the boom contained the seeds of its own destruction. As the boom disintegrated, attempts to stabilize the economy made matters even worse. Efforts at profit maximization reinforced the problems. For example, attacks on both labour and government reinforced the decline. This work warns against framing policies predicated upon either Keynesian or neo-classical theory since both suffer from an unwarranted belief that a market economy can avoid crisis with appropriate economic management. From the Back Cover This book demonstrates the calamitous consequences of the current U.S. policies that follow a Haitian model of low-wage development. The author makes his case by describing the decades-long unfolding of the current crisis in the U.S. economy following the postwar boom. From the beginning, the boom contained the seeds of its own destruction. As the boom disintegrated, attempts to stabilize the economy made matters even worse. Efforts at profit maximization reinforced the problems. For example, attacks on both labour and government reinforced the decline. This work warns against framing policies predicated upon either Keynesian or neo-classical theory since both suffer from an unwarranted belief that a market economy can avoid crisis with appropriate economic management. About the Author Michael Perelman is Professor of Economics at the California State University, Chico. He has been a visiting scholar at the University of Paris and Visiting Professor at Stanford University.