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The US economy today is confronted with the prospect of extended stagnation. This book explores why. Thomas I. Palley argues that the Great Recession and destruction of shared prosperity is due to flawed economic policy over the past thirty years. One flaw was the growth model adopted after 1980 that relied on debt and asset price inflation to fuel growth instead of wages. A second flaw was the model of globalization that created an economic gash. Third, financial deregulation and the house price bubble kept the economy going by making ever more credit available. As the economy cannibalized itself by undercutting income distribution and accumulating debt, it needed larger speculative bubbles to grow. That process ended when the housing bubble burst. The earlier post-World War II economic model based on rising middle-class incomes has been dismantled, while the new neoliberal model has imploded. Absent a change of policy paradigm, the logical next step is stagnation. The political challenge we face now is how to achieve paradigm change.

Economic policy and planning (general) --- United States --- Recessions --- Financial crises --- Global Financial Crisis, 2008-2009 --- Economic conditions --- Economic policy --- -Financial crises --- -Global Financial Crisis, 2008-2009. --- AA / International- internationaal --- US / United States of America - USA - Verenigde Staten - Etats Unis --- 331.30 --- 331.31 --- 331.01 --- 331.061 --- 330.973 --- Global Economic Crisis, 2008-2009 --- Subprime Mortgage Crisis, 2008-2009 --- Crashes, Financial --- Crises, Financial --- Financial crashes --- Financial panics --- Panics (Finance) --- Stock exchange crashes --- Stock market panics --- Crises --- Business cycles --- Depressions --- Economische toestand. --- Economisch beleid. --- Evolutie van de economische cycli. --- Economische vooruitzichten. --- Economic policy. --- Evolutie van de economische cycli --- Economische vooruitzichten --- Economische toestand --- Economisch beleid --- Business, Economy and Management --- Economics --- Global Financial Crisis, 2008-2009. --- Recessions - United States --- Financial crises - United States --- United States - Economic conditions - 2009 --- -United States - Economic policy --- United States of America

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330.564 --- 37 --- 330.564 Verdeling van nationaal inkomen. Inkomensverdeling --- Verdeling van nationaal inkomen. Inkomensverdeling --- 37 Opvoeding en onderwijs --(algemeen) --- Opvoeding en onderwijs --(algemeen) --- Social policy and particular groups --- United States --- 37 Education --- Education --- United States of America

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Legal theory and methods. Philosophy of law --- Human rights --- United States of America

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Comparative literature --- Plato --- More, Thomas --- Aristotle

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Sociology of environment --- Sociology of the family. Sociology of sexuality --- Demography --- Social geography --- demografie --- huisvesting --- sociografie --- woonbeleid --- anno 1980-1989 --- Belgium