ABSTRACT
The financial crisis that started in 2007 in the US is considered the consequence of the financial capitalism model characterized by uneven development and inequality and driven by credit consumption and finance. The flexibility agenda of the labour market and the end of wage increases, along with the contraction of indirect wages diminished workers' purchasing power. However, in the long term, unstable consumption patterns derived from precarious job creation, job instability, and poor wages have weakened aggregate demand. Hence, labour market issues such as flexibility, uneven income distribution, poor wages, and the financial crisis are two sides of the same coin. The economic crisis that started in the financial sector in 2007 had a negative and strong impact on the US and European economies, causing decreases in output and employment levels. This was the largest financial crisis since the Great Depression of 1929 and several arguments regarding the financial collapse have already been put forward.
