On Wealth and Income Inequalities Prabhat Patnaik

In the late nineteen sixties and the early nineteenth seventies, an argument used to be put forward by theorists of Social Democracy that went as follows. In any society wealth inequality is always greater than income inequality; but if this income inequality is curtailed, then that ipso facto has the effect of curtailing wealth inequality as well, and that too quite substantially. Hence it is not necessary to actually nationalize private property and institute social ownership of the means of production; all that is required is the use of taxes and subsidies to reduce income inequality, and over time wealth…

Debtors’ Crisis or Creditors’ Crisis? Who Pays for the European Sovereign and Subprime Mortgage Losses? Jan Kregel

In the context of the eurozone’s sovereign debt crisis and the US subprime mortgage crisis, this article looks at the question of how the losses ought to be distributed between borrowers and lenders in cases of debt resolution. The author points out that it is unlikely that debtors can fully bear the losses in a debt resolution. It is argued that the behavior and policy of creditors is just as important a factor to consider in assessing the situation. debtors_crisis (Download the full text in PDF format)

Employment shifts after the Global Crisis C.P. Chandrasekhar and Jayati Ghosh

For more than a year now, it has been evident that the ''recovery'' from the Great Recession, which has been visible if sputtering in terms of output growth in the core capitalist countries, has not delivered anything like the increases in employment that were expected. A recent report of the ILO (''Short-term employment and labour market outlook and key challenges in G20 countries'', ILO and OECD September 2011, page 1) points out: ''With economic activity slowing in several major economies and regions, earlier improvements in the labour market are now fading, hiring intentions are softening and there are greater risks…