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What is Marx's view of fiscal policy ?
GK: the situation in Germany:
As the leftist critique keeps pointing out, over the last two decades
profits in Germany have increased significantly, while real wages have been
near stagnant. Productivity increases have not been passed on to the
workers.
How have profits been realized? (a) in manufacturing, through vigorous
exports (cars, machinery, biotechnology, etc.) (there is a frequent
reference in the media to Germany as an export world champion) and layoffs.
(b) in services, (1) through selling of cheap imports from Asia and Eastern
Europe (a German equivalent to Wal-Mart is the Aldi chain and other similar
ones), aided by a strong Euro; (2) through employing cheap labour from
Eastern Europe (e.g., in construction, transport) and growth of the low-wage
sector (there I no legal minimum wage) and precarious employment.
^^^^^^^
CB: I just wonder, the more layoffs and the less paid in wages, the less
money the workers have to buy the commodities that realize the profits for
the companies. How do lower wages avoid this problem for realization ?
Doesn't it get papered over with funny finanical money to a large extent ?
I assume that the mass cosumers of commodities that are the means of
personal consumption are the wage-laborers. To realize the profits, most
must be bought by wage-laborers.
- Thread context:
- Re: What is Marx's view of fiscal policy ?, (continued)
- Re: What is Marx's view of fiscal policy ?,
Fred Moseley Mon 04 Jun 2007, 01:09 GMT
- Re: What is Marx's view of fiscal policy ?,
s.artesian Mon 04 Jun 2007, 16:50 GMT
- What is Marx's view of fiscal policy ?,
Charles Brown Mon 04 Jun 2007, 17:36 GMT
- Re: What is Marx's view of fiscal policy ?,
s.artesian Mon 04 Jun 2007, 18:37 GMT
- What is Marx's view of fiscal policy ?,
Charles Brown Tue 05 Jun 2007, 15:54 GMT
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