[Marxism] Roubini anticipates 1.5 percent growth, risk of negative feedback, double dip recession
gary.maclennan1 at gmail.com
Tue Jul 27 18:16:19 MDT 2010
As a well known economic illiterate I am still struggling to get my head
around all this. I think I understand the mechanisms involved - mass
sackings followed by squeezing the remaining workers more.
But does that not lead to the taking out of the domestic market a whole
swathe of potential customers? Surely the credit card solution to the
threat to domestic demand has now run its course.
Though this softening of domestic demand can be compensated for by a rise in
overseas customers in China and possibly India.
But what will be the political as distinct from the economic impact inside
the State? I have always disliked the phrase "labour aristocracy", but
putting that aside, one still wonders at the medium to long term impact of
the elimination of the relatively well paid American worker.
Of course when the American worker has been thoroughly immiserated, she
might be prepared to work for Third World wages, especially if the workers
in China succeed in pushing up labour costs.
That presumably is the capitalist fantasy, however I do not know of any
instance where a class has been smashed without considerable resistance.
Undoubtedly rocky times are ahead and it is a cruel irony that we have the
first Black President presiding over the demise of the American working
class. he may be seen in the wikileaks documents by the CIA as a foreign
affairs asset, but in domestic terms he is destined to go down as a thorough
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