Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Expendable People as a Result of Murderous Academic Economics

Politics / Economic Theory Oct 29, 2013 - 05:11 PM GMT

By: John_Kozy

Politics

The English who settled America brought English culture with them. The colonies were nothing but little Englands. When the colonists revolted, they were merely trying to get free of the tyrannical English monarchy, not trying to change the culture. They were perfectly happy with the English way of life. They carried on its practices and adopted the English system of common law.


That sixteenth century culture is alive and well in America today and is why America is in many respects a backward nation. Americans are living 500 years behind the times.

One would like to believe that human institutions exist to enhance the lives of people, but there is very little evidence to support that view. If enhancing the lives of people is not the purpose of human institutions, what is? The American Constitution lists six goals the founders expected the nation to accomplish:

We the People of the United States, in Order to (1) form a more perfect Union, (2) establish Justice, (3) insure domestic Tranquility, (4) provide for the common defence, (5) promote the general Welfare, and (6) secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Unfortunately, no American government has ever tried to govern in a way that seeks to attain these goals. So the American government is either an unconstitutional, failed state or else the framers of the Constitution must be thought of as having engaged in unrealistic political propaganda. At any rate, the American government is not what the Constitution makes it out to be. The question is why? The answer is the stupid political economy!

The English who settled America brought English culture with them. The colonies were nothing but little Englands. When the colonists revolted, they were merely trying to get free of the tyrannical English monarchy, not trying to change the culture. They were perfectly happy with the English way of strife. They carried on its practices and adopted the English system of common law.

That sixteenth century culture is alive and well in America today and is why America is in many respects a backward nation. Americans are living 500 years behind the times.

The English were engaged in economic activities for hundreds of years before Adam Smith published his An Inquiry into the Nature and Causes of the Wealth of Nation; all he did was provide English merchants with a rationalization for what they had always done and wanted to do more of. Laissez-faire (let [them] do), to them, meant the ability to engage in economic practices without being subjected to governmental restrictions and tariffs. Then, like today, merchants wanted the freedom to profiteer by buying cheap and selling dear. Merchants, then or now, have had little interest in abstruse economic theory unless its models promise greater profit.

But buying cheap and selling dear applies to labor as well as materials, and the classical economists provide a rationalization for that maxim too. The subsistence theory of wages, advanced by classical economists, holds that the market price of labour always tends toward the minimum required for subsistence (that is, for basic needs such as food and shelter). Even Alfred Marshall, America’s first modern economist, was of the opinion that wages in the long run would tend to equal maintenance and reproduction costs. So when the Republican party seeks to eliminate regulations and keep the minimum wage low, they are acting just like sixteenth century English merchants and their boot-licking economists. Merchants become sheep dogs that herd human sheep, and our economists think nothing of it. They have adopted the British way of strife totally.

Although this impoverishment of labor is bad enough, in a globalized economy it is devastating. The classical economists held that a subsistence wage had to be high enough to enable the workforce to reproduce itself in order to maintain a labor supply; in a globalized economy, the workforce needed exists in underdeveloped countries. A domestic workforce is entirely unnecessary, so there is no need to even grant it subsistence wages or any other humane benefit. From a merchants’/economists’ point of view, domestic labor becomes expendable. Why pay it anything at all?

What a lovely world our economists advocate! Economics is not merely a dismal science, it is a murderous one.

Merchants and economists constitute a class of totally inhumane human beings. (Isn’t inhumane human a contradiction?) It seems as though two entirely different races have intermingled—the human race and an inhumane one. In the words of Pope Francis,

“A savage capitalism has taught the logic of profit at any cost . . . of exploitation without thinking of people.”

What kind of person would support this economy? Although they may revel in their fortunes and often act and speak like the rest of us, they are not like us. They are evil to the marrow of their bones. Logically, the inhumane are either not human or deranged.

One such person is Arnaud Costinot, an MIT economist, who uses the doctrine of comparative advantage to justify globalization. He is said to hold this:

“Ricardo thought that instead of trying to produce a wide range of goods, countries could grow by specializing in the goods they could produce most cheaply, and then trading those goods with other countries. This made sense, Ricardo claimed, even when a country could make multiple products more cheaply, in absolute terms, than other countries.

How? Suppose, Ricardo posited, that England produces cloth more cheaply than wine, while Portugal produces wine more cheaply than cloth. And suppose Portugal produces both products more cheaply than England does. Both countries could still benefit from trading in equal terms: England could specialize in making cloth, and trade that for wine. But Portugal could specialize in making wine, and trade that for England’s cloth — which would be the cheapest way to acquire cloth, even if Portugal’s own cloth was cheaper to make than England’s.”

Only thing is, Ricardo never wrote any such thing, and to describe what he wrote in this way is intellectual dishonesty at its worst. Ricardo never uses the word “cheaply.” He uses “the number of man hours needed to produce one unit of cloth or wine,” ‘Man hours worked’ is not a wage or a value of currency. The production may not be cheap. By deliberately misstating what Ricardo writes, economists advocate the exploitation and impoverishment of workers and ultimately their destruction—a truly evil and inhumane goal.

This is the only explanation for the right wing’s war on the poor. Beasts of burden are disposed of when they have lost their usefulness, so destroying the middle class is not to be lamented. When the labor of underdeveloped countries became available to manufacturers, the American middle class became expendable. That is the American Republican party’s goal. It seeks to shrink the size of government by eliminating the people who need to be taken care of.

Economists want us to believe that free trade makes everyone richer, but experience teaches us otherwise.

The Internet is replete with articles both pro and con, but the attitudes of people to offshoring is quite consistent. The peoples in underdeveloped nations involved in making products for the West chafe at the extent of the exploitation. Whether in Latin America, Bangladesh, Malaysia, the Philippines, the Czech Republic, or Poland exploited labor is never described as prosperous. Neither has prosperity blessed America’s laborers. Exploitation and prosperity are alien concepts. The exploited are never prosperous and the prosperous are never exploited. No nation can boast of its prosperity gotten by offshoring. The empirical evidence gotten anecdotally is better than the dubious statistical evidence cited by economists (see The Real Cost of Offshoring.) India’s laborers are not getting rich working for American companies. NAFTA has not brought prosperity to Mexican or American workers. A low-wage job is not a gainful (prosperous) one. Marx asked workers of the world to unite; Western corporate leaders tell them to be damned. Any economist who does not see what is happening is intellectually blind. Or perhaps, just plain evil.

In The Story so Far, the Economist put it this way:

ONCE UPON A time the rich world’s manufacturing firms largely produced in the rich world for the rich world, and most services were produced close to where they were consumed. Then Western firms started sending manufacturing work abroad on a large scale. By the 1980s this was well established. The movement was overwhelmingly in one direction: away from rich countries to places where workers with adequate skills were much cheaper.

Whether openly stated or not, lower labour costs were almost always the chief rationale.

To corporations, workers are likened to beasts of burden and the economic elite who advocate this economic practice are then likened to vicious dogs. What a wonderful world! It will not change until the welfare of mankind, rather than profit, becomes the goal of political-economy. If the human race is to survive, the welfare of human beings must be the goal of human institutions.

John Kozy is a retired professor of philosophy and logic who blogs on social, political, and economic issues. After serving in the U.S. Army during the Korean War, he spent 20 years as a university professor and another 20 years working as a writer. He has published a textbook in formal logic commercially, in academic journals and a small number of commercial magazines, and has written a number of guest editorials for newspapers. His on-line pieces can be found on http://www.jkozy.com/ and he can be emailed from that site's homepage.

Global Research Articles by John Kozy

© Copyright John Kozy , Global Research, 2013

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in