Re: What is Marx's view of fiscal policy ?

[Gernot Koehler <gko15@xxxxxxxxxxx>]

Quoting Charles Brown 4 Jun 2007
. . .
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 ?
. . .

GK: with respect to Germany:
the situation was not papered over with funny financial money, in the sense
of, generous money creation a la Greenspan and generous capital imports from
the rest of the world, as in the case of the United States.  Labour unions
and other critics have pointed out that, for many years, there has been a
shortfall of domestic demand in Germany (due to stagnating wage levels and
stagnating public pension payments) and that (modest) GDP growth has been
largely due to export earnings.

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