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Dualism and Economic Stagnation

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Can a Policy of Guaranteed Basic Income Return Mature Market Economies to les Trente Glorieuses?

The starting point of this paper is an analysis of the original 19 th Century classical dualistic structure of emerging industrial economies associated with a decoupling between real wage and productivity growth . This is followed by a description of how this gap disappeared during the Golden Age period of les Trente Glorieuses and then re - eme rged after the 1970s. Th is is done with the purpo se of providing a framework for discussing some o f the literature on guaranteed income programmes as promoted by both mainstream and heterodox economists . As is well known, proposals in favour of guaranteed income have become fashionable in recent times to address this growing income polarisation that has become endemic in mature industrial economies , and th is paper offer s a critique of these proposals from a Polanyian perspective. While supporting the princi ple of a universal basic income as a means to establish a social subsistence floor, it is argued that a guaranteed income policy without also a societal commitment to full employment may trigger mechanisms that could actually strengthen labour - market decou pling.