Inequality and capital accumulation in peripherical capitalism

Vol. 7 No. 1 (1987)

Jan-Mar / 1987
Published January 1, 1987
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Prebisch, Raúl. 1987. “Inequality and Capital Accumulation in Peripherical Capitalism”. Brazilian Journal of Political Economy 7 (1):3-7. https://doi.org/10.1590/0101-31571987-1005.

Inequality and capital accumulation in peripherical capitalism

Raúl Prebisch
Economista da CEPAL. Comissão Econômica para a América Latina e o Caribe.
Brazilian Journal of Political Economy, Vol. 7 No. 1 (1987), Jan-Mar / 1987, Pages 3-7

Abstract

The paper argues that in developing countries the changing political and social
relations so as the technical progress create a systematic tendency for a dynamic disequilibrium
between consumption and investment. Under these conditions, continued growth
requires a macroeconomic policy directed to increase the rate of accumulation through a reduction
in the aggregate consumption of both capitalist and working classes. Politically this
kind of regulatory policy should be seen as an opportunity for the working class to increase
its share in the wealth ownership.

JEL Classification: E21; E25; O43.


Keywords: Inequality economic growth effective demand productivity