The G-20, Global Stagnation and the Option of Wage Led Growth
Here is the link to a short piece I wrote for Economy Lab.
It borrows from and includes the link to an important paper co-authored by the PEF’s own Marc Lavoie and recently published by the ILO , which I highly recommend. The overall conclusion of that paper is that a shift from profits to wages would be a positive for the global economy as a whole since higher wages are more likely to be spent and would raise productivity by forcing business to invest surplus profits.
There is an important debate to be had between left economists as to whether we could have sustainable wage led growth via higher productivity combined with rising demand, or whether this would result in a profits squeeze and low investment as argued in the Kalecki tradition.
I say give wage-led growth a good trial run!