Income Concentration and Its Impact on Economy and Society: The Case of Mexico

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.