Today’s choice of impoverishing wage earners to rid the economy of cycles and recessions

The United States, the euro zone and Japan have chosen to impoverish wage earners by skewing income distribution at their expense and in favour of profits. This impoverishment of wage earners has led to: Weak wage growth, even at full employment; Low inflation; Low interest rates; A nd has therefore eliminated what generated cycles and recessions in the past: rising interest rates late in the expansion period; falling investment and asset prices; debt crises. The elimination of cycles (recessions) in OECD countries therefore comes at the cost of impoverish ing wage earners.