Christian E. Weller
University of Massachusetts Boston
Abstract
Recent data tell a conflicting economic story. Part of America is drowning in debt, while the another part is overflowing with cash. Middle-class families have experienced weak job growth, stagnant wages, and declining benefits. To make ends meet, they have amassed record amounts of debt. In contrast, corporations have been flush with cash due to sharp profit gains, which they have used for dividends and share repurchases. Firms have largely foregone productive investments in favor of these more speculative uses because it is impossible to sustain increased consumer demand in a debtdriven economy.
