[Marxism] IMF style austerity in the works for the USA?
sartesian at earthlink.net
Fri Oct 16 09:49:58 MDT 2009
No, no, no, the "long term health" does not depend on a weaker dollar to
spur investment in US production and increase the competitiveness of the US
economy, and what investment does occur because of the weaker dollar will
not decrease unemployment and increase workers' income.
How do we know this? Because we've lived through such periods before-- like
the Reagan era, like the Bush era, like the Bush 2 era, and we lived through
a period when real investment took place, and for a brief period, the
decline in workers' wages was reversed-- we call that the W. Clinton era--
just the opposite took place-- the dollar strengthened.
Look at the recovery after the 2001-2003 recession, the decline in the
relative value of the dollar from 2003-2007-- that was a period of
tremendous restriction on investment in US based production [until 2006],
and the slowest job creation and wage growth in an period of "recovery" from
recession in the postwar period.
The bourgeoisie don't give a rat's ass about domestic based production,
about investment, about anybody's income other than their own. They don't
think past the next quarter, when it comes to long-term, or short-term
health of the economy. All they care about is profit. If letting the
dollar sink gives them a better margin in the world markets, well say hello
to the Titanic.
When the Russia or China or Brazil talks about "replacing" the dollar--
they are 1) whistling as they pass by a graveyard that includes their names
on the tombstones 2) "vogueing" for the media 3) wishing and hoping that
something, somebody can find a way out the predicament of their and the
US's own making.
As things resume getting worse after this faux spring of capitalism, we can
look for greater trade conflict, tariffs etc. and we might even see a
growing sense of the US bourgeoisie that they themselves don't want the
dollar to be the reserve currency, don't want to have to front open ended
currency lines to Japan, the EU, Brazil, Switzerland, UK, So.Korea.
I do like, however, the questions you raise at the end of your post.
----- Original Message -----
From: "brad bauerly" <bbauerly at gmail.com>
To: "David Schanoes" <sartesian at earthlink.net>
Sent: Friday, October 16, 2009 9:59 AM
Subject: Re: [Marxism] IMF style austerity in the works for the USA?
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