[Marxism] Kohler on deflation - a thought as much as a query
dwaltersmia at gmail.com
Sun Dec 1 09:58:23 MST 2013
Uncontrolled general commodity deflation equals a depression. I don't
believe that is happening in China, at least I've seen no evidence of it.
Plus, a bit of deflation, especially in the rather skewed state capitalist
economy of the PRC, means an increase in economic activity with more people
being able to get into the so-called "Middle Class" there, now numbering
around 60 million. The PRC goal, stated and unstated, is to double this
number in 10 years. Low commodity *can* help in his goal. Assuming the
economy doesn't crash.
Secondly, the reason to keep wages down is to help the export sector, now
dominent, keep all those sub-conctractors making auto-parts, plane parts,
industrial tool and commodities low enough to keep the central banks flush
with cash. In fact as we know it's the ONLY way they can stay on top of
places like Thailand, Malaysia, Vietnam and now Cambodia. The Chinese have
only one real goal, afterall: exporting unemployment.
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