Contemporary Macroeconomic Outcomes: A Tragedy in Three Acts

The thesis developed in this paper is that contrary to the claims of its proponents, main supply-side consequence neoliberalism was zap labour, institutionalize worker insecurity, and install an `incomes policy based on fear' US economy. Like any successful incomes policy, diminished con flict over shares real income so reduced flationary pressures - but at cost decoupling wage growth from productivity growth. This last outcome fueled rising inequality hollowed out wage-funded, consumption-led core demand-generating process. demand-side weakness neoliberal economy initially concealed by household borrowing debt-financed increases autonomous consumption spending. But it has asserted itself wake Great Recession, following exhaustion debt accumulation result a depressed upswing 2009-2019 addressed none fundamental structural weaknesses evident prior Recession. institutionally entrenched exhausted paradigm left unprepared for onset recession 2020, larger social economic travails COVID-19 pandemic with which initial 2020 associated. excerpted Capitalism, Inclusive Growth, Social Protection: Inherent Contradiction or Achievable Vision? (Edward Elgar, forthcoming).