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Post by jacquelope on May 10, 2012 8:17:16 GMT -6
Boy, I knew this was coming. This is the end game for the working class. www.businessinsider.com/global-reality-surplus-of-labor-scarcity-of-paid-work-2012-5Charles Hugh Smith, Of Two Minds | May 7, 2012, 6:48 PM | 1,846 | 16 The industries that are increasing productivity do so by eliminating entire industries and entire job categories. The global economy is facing a structural surplus of labor and a scarcity of paid work. Here is the critical backdrop for the global recession that is unfolding and the stated desire of central banks and states everywhere for "economic growth": most of the so-called "growth" since the 2008 global financial meltdown was funded by sovereign debt and "free money" spun by central banks, not organic growth based on rising earned incomes. Take away the speculation dependent on "free money" and the global stimulus dependent on massive quantities of fresh debt, and how much "growth" would be left? ...
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Post by unlawflcombatnt on May 10, 2012 11:44:36 GMT -6
I read this article myself. And I've seen this concept before.
It is NOT a valid concept.
If income is shared with the worker/consumers in proportion to their productivity, it increases their buying power AND the demand for production.
By increasing the demand for production, it increases the demand for labor to provide that production. The only real limits to aggregate demand is the income of workers, and the evenness of distribution of that income. (Obviously if all the income goes to rich, it creates less demand than if it was evenly distributed.)
The only way a "labor surplus" occurs is when the demand for production isn't sufficient to employ all the labor. And again, the only way that happens is if the wages aren't high enough to create enough demand.
That's exactly what's happening now.
Demand isn't sufficient to employ all the labor, because workers--in aggregate--aren't paid enough to fund sufficient demand.
Economic doctrine states that "wants" are unlimited. "Demand" is created when people have the means to fulfill those "wants." If the means for fulfilling those wants declines, so does demand for production, and hence demand for labor.
It is the means to fulfill those wants that is limiting the demand for labor.
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Post by jacquelope on May 18, 2012 20:04:10 GMT -6
I read this article myself. And I've seen this concept before. It is NOT a valid concept. It is valid if you factor in the hocus pocus skills of the Plutocracy. In a natural economic environment this is not possible, but when the Plutocrats are hoarding the benefits of increased productivity, a global shortage of jobs is the end result. This is in fact a planned outcome. It will facilitate the artificial mass redundancy of BILLIONS of working class people. Makes it easier to cull their numbers. This is a quiet mass murder of the world's population. They're not using Mongol-style mass slaughters, deadly gas and bio-weapons, or concentration camps to make it happen; they're using economics. Starvation, workers fighting workers, suicides (see: Greece), and when the workers rebel: combat drones.
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Post by unlawflcombatnt on May 19, 2012 9:24:09 GMT -6
I read this article myself. And I've seen this concept before. It is NOT a valid concept. It is valid if you factor in the hocus pocus skills of the Plutocracy. In a natural economic environment this is not possible, but when the Plutocrats are hoarding the benefits of increased productivity, a global shortage of jobs is the end result. Yes. You're right about that. By continually transferring production and labor demand to low-wage countries, aggregate world production demand is being reduced. This is a point I've tried to make for years. If all the labor done by American, Japanese, & European production workers was shifted to China & Vietnam, it would result in a HUGE decrease in aggregate world production demand--since the lower wages of Chinese, Vietnamese, & North Korean workers would support far less buying power. The world's true economic "engine" is the buying power of American & European consumers. Again, US consumer spending power alone accounts for 20% of world GDP. Add European spending power and that number roughly doubles. I'm not sure I agree with that (though my wife certainly would). "Planning" would imply that all the greedy, self-serving Plutocrats & Free Traitors agreed on a plan. I would acknowledge, however, that there's a lot of collusion. It's just hard to imagine that the greed-blinded stupidity that destroyed our economy is the product of any actual planning. But then again, maybe it is planned--and it's just very bad planning. But driving people into poverty WILL ultimately lead to an armed revolution. People tolerate their freedom being eliminated far better than they tolerate poverty and collapse of their living standards. History has born this out time and time again.
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Post by jeffolie on May 19, 2012 14:22:05 GMT -6
It is valid if you factor in the hocus pocus skills of the Plutocracy. In a natural economic environment this is not possible, but when the Plutocrats are hoarding the benefits of increased productivity, a global shortage of jobs is the end result. Yes. You're right about that. By continually transferring production and labor demand to low-wage countries, aggregate world production demand is being reduced. This is a point I've tried to make for years. If all the labor done by American, Japanese, & European production workers was shifted to China & Vietnam, it would result in a HUGE decrease in aggregate world production demand--since the lower wages of Chinese, Vietnamese, & North Korean workers would support far less buying power. The world's true economic "engine" is the buying power of American & European consumers. Again, US consumer spending power alone accounts for 20% of world GDP. Add European spending power and that number roughly doubles. I'm not sure I agree with that (though my wife certainly would). "Planning" would imply that all the greedy, self-serving Plutocrats & Free Traitors agreed on a plan. I would acknowledge, however, that there's a lot of collusion. It's just hard to imagine that the greed-blinded stupidity that destroyed our economy is the product of any actual planning. But then again, maybe it is planned--and it's just very bad planning. But driving people into poverty WILL ultimately lead to an armed revolution. People tolerate their freedom being eliminated far better than they tolerate poverty and collapse of their living standards. History has born this out time and time again. I agree. My optimism...more hope than outright optimism's foundation comes from past such economic/political events. Politics Matters remains one of my most important views...including revolutions America now ridgidly adheres to a crony capitalism with Obama leading the status quo championing JPMorganChase openly and bragging of his 2 individual, personal accounts there where JPMorganChase's investments portfolio contains over $75 Trillion in mostly interest rate focused derivatives. All this will be destroyed in 2014 and/or beyond with the end of encrusted crony capitalism industries and corporations which fail to adapt and survive the coming crisis. Cycle after cycle of these revolutions against stagnant capitalist institutions burning down in Crisises formed the foundation of Kondratief's theories and documented 150 years of data. Will history rhyme again? Yes, I predict another such massive institutional failures allowing new replacements known as creative destructionism. Revolutions that destroy crony capitalism create "good" results. My belief remains hopeful for future Americans.
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Post by unlawflcombatnt on May 20, 2012 0:08:59 GMT -6
The powers that be are going to try to prop up living standards by making credit easier, rather than by making incomes higher.
This serves the immediate need of giving average Americans more buying power, while serving the longer term needs of the Plutocracy by allowing them to confiscate even more of the wealth of the less affluent through interest payments, foreclosures, and property confiscation when payments on credit aren't made.
Isn't it interesting that the major mission of the Federal Reserve and our Government over the last 4 years has been to make credit more available and easier to obtain, instead of increasing wages?
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Post by spudbuddy on Jun 2, 2012 3:57:08 GMT -6
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Post by jacquelope on Jun 3, 2012 15:21:03 GMT -6
[ But driving people into poverty WILL ultimately lead to an armed revolution. People tolerate their freedom being eliminated far better than they tolerate poverty and collapse of their living standards. History has born this out time and time again. Prior to the French Revolution, peasant and poor people revolts historically fail, miserably. Plutocrats are not really letting it sink in that since the French Revolution, such revolts have generally ended successfully. The Plutocrats are now betting on the supremacy of armed drones. They think the drones will, once the tech is matured, destroy an armed insurrection before they have to even think about deploying their troop-thugs. Hackers may turn their drones against them...
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