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Do We Eat Too Much? The current economic crisis as a result of overconsumption

Jaworski, Piotr Marek; Weber, Jorg


Piotr Marek Jaworski

Jorg Weber


Over the past 15 years, a fairly synchronised and steady increase of the current account deficits of the US and the UK has been witnessed, while at the same time real house prices and real wages in these two economies increased sharply. We analyse the offspring of the economic crisis of 2008 within the framework of Minsky’s theory of financial crisis, and identify the reasons behind this development as the global imbalances. Our empirical results show that overconsumption in the US and UK caused unsustainable growth, which manifested first in real wage inflation. Within this development, neither the financial sector nor failed regulation is to blame, as financial intermediaries merely fulfilled their requirements as the vehicle between borrowers and lenders. Instead, we argue, our ‘need’ for overconsumption is to blame, and policy makers are required to address this issue as soon a possible in order to avoid another, probably more severe crisis in the long-run.


Jaworski, P. M., & Weber, J. (2011). Do We Eat Too Much? The current economic crisis as a result of overconsumption. Journal of Interdisciplinary Economics, 23, 223-238.

Journal Article Type Article
Publication Date 2011
Deposit Date May 29, 2012
Print ISSN 0260-1079
Publisher SAGE Publications
Peer Reviewed Peer Reviewed
Volume 23
Pages 223-238
Keywords Overconsumption; economy; economic crisis; deficit; real wage inflation;
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