[Marxism] Are pay cuts a solution to the crisis?
farmelantj at juno.com
Mon Mar 5 06:05:28 MST 2012
Within bourgeois economics, that was an issue that was debated back in the 1920s and 1930s. Pigou famously argued that paycuts were necessarily to reduce unemployment during a slump. John Maynard Keynes argued that attempting to do paycuts during a slump may prove to be counterproductive because this might reduce effective demand. Keynes argued that fiscal and monetary stimulus would be a more effective and practical way for dealing with a slump. It's interesting to note though that one of his arguments for reflation was that it would achieve the same sort of thing that Pigou had hoped to achieve by cutting wages, because while monetary wages would not be reduced, workers' real incomes would be reduced as the cost of living rose in response to fiscal and monetary stimulus.
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---------- Original Message ----------
From: james pitman <marinercarpentry at gmail.com>
To: farmelantj at juno.com
Subject: Re: [Marxism] Are pay cuts a solution to the crisis?
Date: Mon, 5 Mar 2012 12:50:24 +0000
Rule #1: YOU MUST clip all extraneous text when replying to a message.
I haven't read the article yet, but the short answer must be no. Any
increase in the rate of exploitation that successfully extracts more
surplus value is still unrealised as profit, and therefore, no guarantee of
a return to profitability. Surplus value and profit may be inversely
related in some cases and some increases in the rate of exploitation could
actually deepen a crisis from a 'consumptionist' perspective.
On 5 March 2012 10:22, Mark Comerford <markmedia at gmail.com> wrote:
> Rule #1: YOU MUST clip all extraneous text when replying to a message.
> An interesting and pedagogical answer to the above question, with stats
> from both the Economist and the Bureau of Labour Statistics can be found at
> The article is in Swedish but Google translate gives an adequate
> translation. This could be useful for labour activists
> Mark Comerford
> Skype: markmedia
> Tel: cell +46 76 040 32 52; 08-519 72 070
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