View Single Post
 
Old 12-06-2012, 04:26 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 3,905
Production, consumption and Ned Ludd

Great Britain and Germany were the first to pass into the industrial revolution.
This gave them great leverage in manufacturing that closed down a lot of artisan jobs. Manufactured items became cheaper. The earlier that a country mechanized, the sooner that they raised everybody's standard of living.

Carbon energy replaced animal and human energy. This freed up more time for people to pursue an education. Mass production needed workers. Their wages were used for consumption. This was a big improvement over subsistence farming. The production-consumption cycle got moving big time.
This allowed an increase in the number of parasites who could be supported.

For many decades, production, consumption and parasites all grew together.
Slowly, but surely, automation began to appear. Artisans lost their jobs to machines. Ned Ludd tried to turn back the tide by destroying automated looms.
Luddite - Wikipedia, the free encyclopedia
Production was outsourced to low wage producers like India. Just the same, the change to automation never stopped. There is ALWAYS somebody who is hungrier than you and will work for lower wages than you will.
When jobs left to low-wage markets, there was an over supply of consumers who didn't have wages.

Slowly but surely the numbers of necessary producers were reduced. Increasing automation increased productivity with fewer workers. Huge numbers of people were jobless. Karl Marx said that workers should take over the means of production. That never worked out well.
As an alternative, Marx said that GOV should hire all the extra workers.
Hegel said that GOV should tax all the productive workers and hire the leftover people to work for GOV. people.

Hegel's idea was for GOV to tax so much and hire so many that eventually, everybody would work for GOV. That way, they would always vote for more tax and more GOV. Hegel taught that the state was ordained by God. He also was completely against any kind of individual liberty.
https://mises.org/daily/6213/Hegel-T...e-as-Gods-Will

Industrialists failed to see that paying low wages was counter-productive. Sure, they had all the money but, economic activity is determined by the velocity of money, not just the quantity.
Henry Ford paid his workers extremely well so that they would eb able to buy his cars.

The modern industrialist competes like crazy and automates where he can.
He eliminates his producers ,,,, and then goes looking for solvent consumers.
Many countries worldwide are charging into the industrial revolution and building factories. The world aggregate productive capacity is rising all the time. Many jobs are moving to low-wage countries. The overall aggregate consumptive power in the West is falling like a stone. Wage competition really started to set in about the 70s. Should it be any surprise that American wages have been stagnant since then?

The perfection of containerized shipping threw all of our manufacturing into global competition. We still have mining and agriculture as value-added enterprises but, they are increasingly automated. What do you expect to happen to our standard of living when we face low-wage competition?
Things Are Spiraling Out Of Control In America: Households Hit 43-Year Low In Net Worth, A Staggering Collapse In Small Business Optimism Since The Election, $268 Billion In New ObamaCare Taxes Beginning January 1, 2013, And A New Law To Tax American

It doesn't help that Westerners buy all that stuff from low-wage markets.
After WW II, America had 3% of the population and 50% of the manufacturing capacity. Our resultant high standard of living gave way to low-wage competition. These are economic realities that won't be changed by politicians.

The best that GOV can come up with is to inflate the currency. This tends to raise commodity prices from speculators. Seen from ground level, this is actually a REDUCTION in wages. This is called a "race to the bottom." This is done to lower wages and preserve,,, or regain market sector in manufacturing. It lowers consumption at the same time so, it doesn't really gain.

This is where we are today. We've wiped ourselves out in the job market with too much efficiency. I do not know of a cure for efficiency.
Many of the people who have lost their job have nowhere to go. Their niche is gone. Existing niches are too crowded. GOV tries to fill the gap.
Illinois, I believe has ONE worker supporting 1.7 who are on benefits or GOV salary. 9 other states are almost as bad. 53% of Americans depend on a check from GOV.
The jobs aren't going to come back.
__________________
 
Reply With Quote