Wall Street

Mark Jones jones.mark at SPAMbtconnect.com
Sat Mar 17 13:41:18 MST 2001


Henry wrote:

>Why is capital so fearful of fair wages?  Is it not time to face facts and
recognize that wages drives consumption and in a world of structural over
capacity, high wages is good economics?<

Keynesian reflations are more likely to produce inflation than growth in
consumption standards during cycles of falling profit, and capitalism has been
locked into such a downswing (admitting counter-tendencies) since 1973 at
least. This does not go to the underlying problem.

What's more, any substantial increase in mass consumption levels in the
peripheries would immediately run into a more serious underlying problem:
shortage of water, food and above all, energy. There is no real scope for
expanding energy production even to cater for the 1.7% p.a. increase in
production needed (other things being equal) to provide for continuing
population growth.

And what would be the enviornmental and climate effects of substantial
increases in mass consumption levels? Raising this question is not
misanthropy, it is to point to a very real issue which the Left either ignores
or does not address properly. It is no good compartmentalising our politics,
and arguing in one place against global warming and ecocide, and in another
for increases in human impacts on the environment.

Mark






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