United States: An economic model based on the impoverishment of the poorest

The lowest -income Ame ricans have been “ robbed ” on two counts : By being stripped of bargaining power in the labour market, leading income distribution to be skewed at their expense and in favour of companies and high-income Americans; By the growing concentration of US companies, and therefore the emergence of companies that enjoy dominant positions and extract rents at consumers’ expense. This deterioration in the situation of the low est -income Americans forms the basis of the US economic model: It gives companies very high profit margins, leading to a high investment rate and to share buybacks, which boost share prices and stimulate demand via the equity wealth effect; It maintains full employment despite the low level of labour force skills, thanks to abundant job creation in unsophisticated services made possible by the low wage in these services and by employment flexibility .