By Crushing Labor, Capitalism Destroys Itself

Because all wealth comes from labor

Capitalism's fundamental error is rejecting this fact: without labor, there is no capital.

The only time capitalism has truly thrived n this country is when working people earned good pay with good benefits: the four decades between World War II and the Reagan Regression.

As soon as Big Money decided they could do better by crushing workers - and persuaded politicians of both parties to help them do it - the Great Liberal Prosperity began to decline.

But plutocrats toasting the imminent death of unions and the rise of a lords-and-serfs economy are celebrating their own demise.

Shamus Cooke at Truthout:

"Karl Marx got it right, at some point capitalism can destroy itself," said Mr. Roubini, in an interview with The Wall Street Journal. "We thought markets worked. They're not working."

The world economy is in shambles and about to get worse, according to even mainstream economists. How bad is anybody's guess. Some things, however, are certain: the recovery that politicians have been promising for years existed only in their heads. The reality of the situation is now apparent to millions of people across the globe, who, before, clung to the empty promises of economic recovery. This newfound consciousness will inevitably find expression in the political realm and, more importantly, the streets.

A key aspect of this sudden mass awareness is in response to high unemployment and the deeply unpopular measures that politicians are forcing upon working people, both byproducts of the Great Recession. Politicians are blaming "the markets" for demanding austerity measures, but "markets" are simply places where wealthy people invest their money. To guarantee a profitable return on their money these investors demand that labor laws be squashed and social programs be eliminated, all over the world.

Spain, for example, is one of many countries having austerity measures forced down their throats. Reuters reports:

"Analysts see the shaking up of the country's inflexible labor laws [laws that protect workers] and the easing of hiring and firing [so older, activist, or slower workers can be fired] as vital to restoring the country's competitiveness. The labor reforms are crucial. They will help to restore growth [profits] in the long term. Growth is the only way out of these adverse fiscal trends,' said Luigi Speranza, analyst at BNP Paribas." [May 27, 2010]

To summarize, creating new laws that enable Spanish corporations to work their workers harder will be better for profits.

Greece faces a similar austerity plan, according to The Guardian UK:

"Tax increases, spending cuts and wage reductions and a sweeping privatisation programme have led to violent protests in Greece, with many arguing that the International Monetary Fund and European Union have demanded too high a price for their financial support." [August 2, 2011]

In the United States, these policies find expression in the attack against public-sector unions and the targeting of Social Security, Medicare and Medicaid for cuts, while mass unemployment is allowed to act as a very efficient way to lower wages for all workers.

Politicians have made it clear that economic growth, especially corporate profits, will increase in response to these anti-worker policies. They are only partially right. Corporate profits in fact have been on the rise, but the austerity measures have been responsible for the depressed economies throughout Europe and the US. When workers' wages are lowered and social programs are decimated, working people and the poor are left with little money for any purchases other than the bare necessities. Without consumer demand for their products, corporations curtail operations even more. This global dynamic has been decades in the making, with the recession having finally forced the issue into the forefront.

SNIP

Since illusions of an economic recovery have now been shattered, it's up to working people to demand that their labor unions and community groups unite to tax the rich and corporations in order to finance a massive jobs program. Fortunately, the AFL-CIO is organizing actions for the first week of October to demand jobs and oppose cuts to Social Security, Medicare and Medicaid. Many within the labor movement are calling for massive demonstrations across the country for October 1. It will take these types of actions to unite working people to fight for a positive solution to the economic crisis.

Read the whole thing.

Then find your local Labor Day parade and get out there and march for workers, for capitalism, for America.