Financialisation, income distribution and aggregate demand in the USA

This paper investigates the effects of financialisation and functional income distribution on aggregate demand in the USA by estimating the effects of the increase in rentier income (dividends and interest payments) and housing and financial wealth on consumption and investment. The redistribution of income in favour of profits suppresses consumption, whereas the increase in the rentier income and wealth has positive effects. A higher rentier income decreases investment. Without the wealth effects, the overall effect of the changes in distribution on aggregate demand would have been negative. Thus a pro-capital income distribution leads to a slightly negative effect on growth, i.e. the USA economy is moderately wage-led.

Imaginative Mislocation: Hiroshima’s Genbaku Dome, Ground Zero of the Twentieth Century

The controversy that erupted in March over the publication of Charles Pellegrino’s account of the atomic bombings of Japan, The Last Train from Hiroshima, suggests that the historical legacy of the first military use of atomic weaponry is still fiercely contested in the USA. The spat is merely the latest conflict in a long war over the significance of the bombings, which resurfaces with each new book, exhibition or programme that appears. When the ruins of the Genbaku (Atomic Bomb) Dome – formerly the Hiroshima Prefectural Commercial Exhibition Hall – were nominated as a UNESCO World Heritage Site in 1995, the United States objected on the basis of concerns over a ‘lack of historical perspective’, arguing that the ‘events antecedent to the United States’ use of atomic weapons to end World War II are key to understanding the tragedy of Hiroshima’. The appeal to historical facts by both US diplomats and, more recently, military veterans contrasts with the dehistoricized emphasis of other Western cultural responses to Hiroshima. But what both kinds of reception share is an occlusion of the prehistory of capitalist liberalism, colonialism and imperialism which produces Japanese modernity,a prehistory which is itself built into the Genbaku Dome’s concrete structure, and an afterlife of nuclear pacification which produces the global context of terrorism as the continuation of war by other means.