Full text: Growth and Stagnation

This was partly due to institutional 
7 saving(pension funds) partly to 
high incomes of the middle class, 
increased markedly over a long period./As has been argued 
above this tends to depress profits, and this effect is 
at least partly offset by government deficits: The saving 
of the rentiers finds its counterpart in the government 
budget deficit.The budget has to absorb what business does 
not wish to borrow. This is the enforced indebtedness 
discussed further above. The weight of the rentiers interest 
in the councils of governments has generally been high 
and some governments have pampered them with subsidies 
(promotion of savings) and inadequately taxed them. 
These interests have been at the head of the reaction against 
inflation and against full employment. Thpey are allied 
to the banks*These interests triumphed in the 1980s with 
the victory of monetarism which brought about the high 
interest rates which weighed heavily on the debtors 
including governments of the developped countries 
whose rangejof action with regard to employment policies 
was thus severely curtailed. 
Another feature of the post-war period was internationalisation 
of trade, capital movements, enterprise. The liberalisation 
of trade introduced a new force of competition, 
also because it increased the speed of diffusion of technical 
progres^This alone makes it difficult to believe that 
concentration of businees-which no doubt happendd~ 
had increased the profit margins at normal rates of utilisation 
In a sense the liberalisation was linked to the hegemony 
of the U.S. which assured economic cooperation in the western 
world. It involved the dollar as the basis of the

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