Karl Marx to ride again?
Speaking of the economy and the odd disconnect between "growth" in output and wages, which are not growing in proportion, as WallDon & KissWeb did here yesterday, one has to wonder if this is not primarily because just about all the increased profits are being directed to corporate higher-ups and certain investors.
Not only does current tax policy drastically favor the wealthier, but it seems the wealthy and powerful have few compunctions these days against further enriching themselves at the corporate trough without regard for workers beneath them. (As far as I am concerned this factors not only into wages, but hiring/firing/outsourcing practices and lack of environmental concern as well.) Egregiously excessive CEO pay packages, which resemble the abuses of banana republic dictators and their suitcases stuffed with cash & diamonds, are simply the tip of the iceberg.
As I think back to the Cold War and before that to the struggle between Marxism and capitalism throughout the 20th century, I somehow think that the reason "we" won was because western capitalist countries enacted a generally social-democratic form of capitalism that alleviated the worst excesses of early industrial capitalism. This development undercut (or addressed) Marx's economic analysis and offered an alternative to revolution and outright socialism. In this regard, the labor unions may have been one of "our" best weapons, no?
Here's the point: if not checked, I think that Reagan/Bush capitalism will engender a resurrection of Marxist or Marxist-like movements (Happy Easter, Karl). Capitalism as such did not "win" the struggle with socialism: it was more of a Hegelian synthesis of the two that emerged. Turning back the economic clock to the 19th century, only now exploiting labor on a global basis, is not going to stop time.
I know I am writing this in a blog well-stocked with economists, so fire away!
Not only does current tax policy drastically favor the wealthier, but it seems the wealthy and powerful have few compunctions these days against further enriching themselves at the corporate trough without regard for workers beneath them. (As far as I am concerned this factors not only into wages, but hiring/firing/outsourcing practices and lack of environmental concern as well.) Egregiously excessive CEO pay packages, which resemble the abuses of banana republic dictators and their suitcases stuffed with cash & diamonds, are simply the tip of the iceberg.
As I think back to the Cold War and before that to the struggle between Marxism and capitalism throughout the 20th century, I somehow think that the reason "we" won was because western capitalist countries enacted a generally social-democratic form of capitalism that alleviated the worst excesses of early industrial capitalism. This development undercut (or addressed) Marx's economic analysis and offered an alternative to revolution and outright socialism. In this regard, the labor unions may have been one of "our" best weapons, no?
Here's the point: if not checked, I think that Reagan/Bush capitalism will engender a resurrection of Marxist or Marxist-like movements (Happy Easter, Karl). Capitalism as such did not "win" the struggle with socialism: it was more of a Hegelian synthesis of the two that emerged. Turning back the economic clock to the 19th century, only now exploiting labor on a global basis, is not going to stop time.
I know I am writing this in a blog well-stocked with economists, so fire away!
posted by ChiTom | 8:26 AM
2 Comments:
You're not getting any complaints from me. The growing divide between the super rich and the rest of us is certainly not a healthy sign.
Unfortunately, we liberals/progressives always have to adhere to the middle ground, and the middle tends to get driven out by the extremes: middle children, the Mensheviks in the Russian Revolution. So we need to find ways of asserting the Social Democratic "middle way" with strength. I think of it as the Mr. Miyagi school of economic thought: "Remember Daniel-san, balance ... is key!" The present gross imbalance in improvement in quality of life drags down the whole system.
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