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The Share Economy: Conquering Stagflation

The Share Economy' by Martin L. Weitzman has reaped favorable comments from several distinguished sources. Robert Solow has termed it "a marvelous book," James E. Meade views the book as "important, stimulating, readable, and persuasive," and the New York Times has provided editorial praise. Because of the support it has received and because of the importance of its goal-conquering stagflation-we have selected this book for special review by distinguished representatives of academia, labor, and management. In recent decades, industrialized economies have been troubled with stagnation, the combination of stagnation and inflation. Weitzman argues that the traditional macroeconomic weapons, such as fiscal policy, are inadequate to deal with stagnation because they ignore im-iportant micro behaviors. The main culprit is the wage-payment system, which relates compensation to some measure, such as a fixed dollar amount, whose value is independent of the firm's well-being. Most sales are accounted for by firms that are "competitive monopolists" in their product markets, which means that prices tend to be a fixed markup over wages. Because wages