In recent decades, the labour share has experienced a downward trend in Portugal at the same time as a weaker and anaemic growth pattern. This seems to suggest that the fall in the labour share represents an important constraint on Portuguese economic growth, which is contrary to the orthodox claims around wage restraint policies – namely, that such policies are a necessary condition of improved macroeconomic performance, owing to their positive effects on private investment through higher profits and on net exports through reduced unit labour costs and a corresponding rise in competitiveness. This study assesses the relationship between labour share growth and economic growth by performing a time series econometric analysis focused on Portugal from 1971 to 2021. Findings show that labour share growth has positively impacted on economic growth in Portugal, which is in line with heterodox claims and particularly with post-Keynesian economics on the beneficial effects on private consumption played by the growth of wages. Findings also confirm that the Portuguese economy has followed a wage-led growth regime instead of a profit-led growth regime; that is, a rise in wages increases aggregate demand and, therefore, boosts economic growth because its beneficial effect on private consumption more than compensates for a prejudicial effect on private investment and on net exports. The study points out the urgent need to adopt public policies to support the growth of wages to avoid more decades of dismal growth and a new ‘secular stagnation’ in Portugal.

‘Post-Keynesian’ became an umbrella term for those heterodox economists wanting to move away from the dominant neo-classical paradigm but not comfortable with another umbrella term of ‘political economy’. This review is about the contributions to understanding societal and economic change from an established and internationally recognised group of post-Keynesian economists. Many of the features which differentiate them from other, and sometimes fluid, subsets of post-Keynesian economists derive from their Kaleckian inspiration.

This essay is a review of and tribute to the life and contributions of Nina Shapiro, who passed away this year. Shapiro was an American Post-Keynesian economist, who was a bridge figure in radical economics, connecting Marx to Keynes, Schumpeter to Kaldor, the behavior of the firm to the dynamics of the macroeconomy, and the process of innovation to the organization of production and accumulation. She was seminal to important moments in the history of radical economics in the US, including the formation of the Hegel-inspired journal Social Concept in the 1980s and the Rutgers University’s Post-Keynesian circle in the 1980s and 1990s. Shapiro’s deeply philosophical and dialectical approach to firm behavior, innovation, and business cycles led her to theorize the “revolutionary character” of Post-Keynesian economics and to formulate a critique of the competitive neoclassical firm which, she argued, is at odds with the logic of capitalism in which firms seek to make profit and grow.

This article aims to set out some progressive, mainly post-Keynesian, macroeconomic policy ideas for debate and further research in the context of macroeconomic challenges faced by South Africa today. Despite some successes, including at reducing poverty, the South African economy has been characterised by low growth, rising unemployment and increasing inequality, which together with rampant corruption and governance failures combine to threaten the very core of the country’s stability and democracy. The neo-liberal economic policies that the African National Congress–led government surprisingly adopted in 1996 in order to assuage global markets sceptical of its historical support for dirigiste economic policy, have simply not worked. Appropriate progressive macroeconomic interventions are urgently needed to head off the looming prospect of a failed state in the country which Nelson Mandela led to democracy after his release from prison in February 1990. What happens in Africa’s southern tip should still matter for progressives all around the world. The article draws on both history and theory to demonstrate the roots of such progressive heterodox economic thinking and support for a more carefully coordinated activist state-led macroeconomic policy, both in general terms and in the South African context. It shows that such approaches to growth and development – far from being populist – also have a rich history and respectable theoretical pedigree behind them and are worthy of inclusion in the South African policy debate.