[Marxism] Robert Fitch: only Marxism can explain the financialcrisis

[S. Artesian]

Charles,

Then could you please explain why the previous recovery begins, and is 
extended with a decline in real wages, and ends with an increase in real 
wages.

----- Original Message ----- 
From: "Charles Brown" <cdb1003 at prodigy.net>
To: <sartesian at earthlink.net>
Sent: Thursday, February 19, 2009 1:37 AM
Subject: [Marxism] Robert Fitch: only Marxism can explain the 
financialcrisis


> Robert Fitch: only Marxism can explain the financial crisis
>
>
> "As far as what drove the boom and what caused
> the bust, it's the rate of exploitation that's the dog. The savings rate 
> is the tail."
>
> ^^^^
> CB: And it is exploitation that
> impoverishes and restricts the consumption
> of the masses. Workers are not paid
> enough to buy all that they make.
>
>
> For the economists, the financial markets determine the markets for 
> commodities. Any nation could have a giant trade surplus; it's ultimately 
> just a policy choice about savings behavior. The country with the giant 
> surplus just happened to be China. Utterly ignored is the fact that trade 
> surplus/ capital glut could never have formed without staggeringly high 
> rates of labor exploitation in the strict Marxian sense: the ratio of 
> value added by labor divided by wages.32 As far as what drove the boom and 
> what caused the bust, it's the rate of exploitation that's the dog. The 
> savings rate is the tail.
>
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