What Is the American Model Really about? : Soft Budgets and the Keynesian Devolution
Europeans tend to view the American success story of the 1990s through the prism of free-market public relations, as a triumph of falling wages, rising inequality, and increasing "flexibility" in labor markets. This is an illusion. If it were not, the United States would not now be in its present difficulties. The American return to full employment is better understood as the result of greatly expanded spending in the social sectors: health care, education, housing and pensions, notably, which in conjunction with the bubble in information technologies created the effective demand necessary to absorb the unemployed. Now that the bubble has collapsed the American model is in danger, as interlocking mechanisms of public and private finance all come under pressure. But the period of American success still holds lessons for Europeans considering how best to cope with their continuing scourge of mass unemployment. (original abstract)
- Galbraith, J. K. (1998), Created Unequal: The Crisis in American Pay, New York: Free Press.
- Galbraith, J. K. (1999), Pedro Conceicao and Pedro Ferreira, "Inequality and Unemployment in Europe: The American Cure," New Left Review, No. 237, September-October, p. 28 -51. Also published as "Ungleicheit und Arbeitslosigeit in Europa: Das amerikanische Rezept" in Berliner Debatten, 10, Jahrgang 1999, 4/5 (Dezember) p. 50-67.
- Godley, W., Izurieta A. (2002), Strategic Prospects and Policies for the U.S. Economy.
- Godley, W., Izurieta A. (2001), The Developing U.S. Recession and Guidelines for Policy.
- Godley, W., Izurieta A. (2001), As the Implosion Begins? Prospects and Policies for the U.S. Economy.
- Kornai, J. (1986), Contradictions and Dilemmas: Studies on the Socialist Economy and Society, Cambridge: MIT Press.
- Lafer, G. (2002), The Job Training Charade, Cornell University Press.
- Woolhandler, S. Himmelstein, D. U. (2002), Paying for National Health Insurance - and Not Getting It, "Health Affairs" Vol. 21, No. 4 (July-August), p. 88-96.