[Marxism] Are pay cuts a solution to the crisis?

Jim Farmelant farmelantj at juno.com
Mon Mar 5 07:13:56 MST 2012


I think this goes to show that there have been parallel debates going on within both bourgeois economics and Marxist economics.  Grossman's view is not really all that different from Pigou's.  Likewise, Paul Sweezy defended a view that was analogous to that of Keynes, as Sweezy himself was the first to admit.

Jim Farmelant
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---------- Original Message ----------
From: Tristan Sloughter <tristan.sloughter at gmail.com>
To: farmelantj at juno.com
Subject: Re: [Marxism] Are pay cuts a solution to the crisis?
Date: Mon, 5 Mar 2012 07:43:09 -0600



>
> John Maynard Keynes argued that attempting to do paycuts during a slump
> may prove to be counterproductive because this might reduce effective
> demand.


But would not increasing exploitation lower the cost of goods?

I believe this was what Grossman argued was the only way to save capitalism
as well. But it of course also increases resistance and means the ultimate
demise of the capitalist system.

"Once this connection is clear, we have a means of gauging the complete
superficiality of those theoreticians in the trade unions who argue for
wage increases as a means of surmounting the crisis by expanding the
internal market. As if the capitalist class is mainly interested in selling
its commodities rather than the valorisation of its capital." - Law of the
Accumulation and Breakdown, Henryk Grossman

Tristan
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