TITLE:
Income Concentration and Its Impact on Economy and Society: The Case of Mexico
AUTHORS:
Carlos Encinas-Ferrer
KEYWORDS:
Gross Domestic Product (GDP), Real GDP and GDP per Capita in Pesos and Dollars, Income Distribution, Income Concentration, Poverty, Domestic Market
JOURNAL NAME:
Modern Economy,
Vol.8 No.2,
February
20,
2017
ABSTRACT: As
we move into the twenty-first century the problem that concentration and
inequality in income distribution represent for the World is accentuated more
and more. The great crisis of 2008 and its aftermath, the crisis in the
Eurozone, took place due to a fall in aggregate demand. While the productive
sector was working below its capacity, demand accumulated insufficiencies
initiated years earlier. Since 1982 and the great crisis of external debt the
neoliberal political system exacerbated the problem starting the dismantling of
the welfare state based on the theories of John Maynard Keynes that had been
built since the end of World War II. Neoliberalism disguised their ideology
clearly in favor of the big transnational capital through developmentalist
arguments unsubstantiated and that after nearly four decades of failure they
refuse to recognize.