abstract: 'Detailed analysis of BEA methodology and data strongly suggests that

  U.S. GDP is overvalued on the output side. The ability to generate

  income without producing real value-added output is a key characteristic

  of a rentier economy. Broader indicators include a massive increase in

  financial activity and finance, insurance, and real estate (FIRE),

  declining manufacturing share, declining real investment in plant and

  equipment, increased outsourcing of production and rising trade

  deficits, declining employment and real wage growth, rising profits,

  growing inequality, and increasing aggregate demand dependency on

  private (household and business) and public sector debt. Based on these

  indicators, relative to other advanced countries like Germany, the U.S.

  has since the mid-1970''s increasingly become a rentier economy. Grafting

  a schematic rentier economy onto a simple free trade unequal exchange

  model from Baiman (2006) highlights the labor exchange, inequality, and

  efficiency characteristics of rentier United States, unequal exchange

  (German), and developing country (China), economies. Reviving the U.S.

  economy and restoring full employment will require a public policy

  induced reallocation of resources away from rentier activity back to

  productive high-value added unequal exchange production.'
affiliation: 'Baiman, R (Corresponding Author), Benedictine Univ, Lisle, IL 60532
  USA.

  Benedictine Univ, Lisle, IL 60532 USA.'
author: Baiman, Ron
author-email: rbaiman@ben.edu
author_list:
- family: Baiman
  given: Ron
da: '2023-09-28'
doi: 10.1177/0486613413511404
eissn: 1552-8502
files: []
issn: 0486-6134
journal: REVIEW OF RADICAL POLITICAL ECONOMICS
keywords: 'full employment; unequal exchange; rentier economy; national income and

  product accounts; federal deficit; trade deficit; E01; E11; E12; F16;

  F41; J21'
language: English
month: DEC
number: '4'
number-of-cited-references: '39'
pages: 536-557
papis_id: d8a59f19ad3ee08abb31ca649472f647
ref: Baiman2014unequalexchange
times-cited: '9'
title: Unequal Exchange and the Rentier Economy
type: Article
unique-id: WOS:000344690300012
usage-count-last-180-days: '3'
usage-count-since-2013: '18'
volume: '46'
web-of-science-categories: Economics
year: '2014'