The financial oligarchy deliberately distorts reality in order to
prevent people from becoming informed.
The slight drop in the official level of unemployment in the
U.S. was interpreted in the media as a corresponding expansion of
the economy. This may or may not be the case; however, the
surprising thing was that in response to the "expanding" economy,
the stock market dropped! This was explained by various "experts"
as the response of investors fearful that a "too rapidly expanding
economy" would fuel inflation and that the Federal Reserve Bank
would act to control inflation by raising interest rates.
The logic of this "explanation" is bizarre to say the least.
It is a commonly known fact that inflation is due to an imbalance
in a nation's currency supply - namely that too many dollars are
chasing too few goods and services. Therefore, if the currency
supply remains constant, an expanding economy (i.e., more goods and
services) will lead to deflation, not inflation. Currency would
become more valuable, not less. Presumably, the Federal Reserve
Bank could then decrease the interest rate, if it indeed bases such
considerations on the rate of inflation.
How then can all of these experts and investors come to a
diametrically opposite conclusion? The only rational explanation is
that there is some other relationship which they are deliberately
trying to conceal. Since maximum profit is the only consideration
of the financial oligarchy, it is not too difficult to figure out
what that relationship is. Falling unemployment (whether due to an
expanding economy or not) will lead to rising wages and hence
falling profits. From there it is easy to see why the stock market
might drop. However, it would not be very wise for the financial
oligarchy to admit to the truth that during this period their
interests of maximum profits can only be achieved at the expense of
the jobs of workers. Therefore, they drag out the bogeyman of
"inflation" to justify the unjustifiable.
This propaganda is a variation of the economic disinformation
that has been spread by the bourgeoisie since the 1970s. During
that period, high rates of inflation were the main vehicle for the
massive transfer of wealth from society as a whole into the pockets
of the financial oligarchy. To cover up that process, the lie was
promoted that inflation was driven by workers' "unreasonable
expectations" and "high wages." Although no economist could ever
justify such a claim, that has not stopped many eminent economists
from repeating it.
Shawgi Tell
University at Buffalo
Graduate School of Education
[EMAIL PROTECTED]
