Ray, you pose some interesting questions - most of which I cannot even attempt to formulate an answer. But, I will offer a few comments.

On Nov 24, 2010, at 1:41 PM, Ray Harrell wrote:

How does this relate to the problem discussed years ago that there was a coming labor glut due to robotics and automation?

It seems apparent that most, if not all, of our current problems stem from overpopulation/unneeded people. This is driving us, as Ed pointed out some time ago, to the Sao Paulo -ization of the Western world. Or at least to similar slum-life conditions for a large segment of our population. Unemployment rates among some segments of society are currently running around 40-50%, and may grow worse over time - at least in part because of continued automation/mechanization of relatively low-end service jobs as well as continued automation of traditional factory work.

They predicted a 40% unemployment at the time as I remember. I noted that because, automation hit our town on the reservation and cut it by one third and robotics almost eliminated the mines as a user of citizen labor.

I've seen the same phenomena in a couple of different places, but not with as dire a consequence as you've seen because it was more spread out over time and other organizations were able to absorb at least some of the resultant labor surplus. Plus, movement to other cities was still a viable option for many working families. It is interesting to also note that when a primary breadwinner suffers a period of unemployment, there will be an impact on the children in such a way that the children's later earnings tend to be significantly less than their parents' earnings. This is based on research conducted in Canada in the 1980s, when a number of single-employer communities experienced plant closings and other economic disruptions.

I do remember that 40% number because the productivity lag with all Arts Organizations is 40% as well. An accident or a parallel?

Very interesting observation. I'm not sufficiently conversant with the Arts to comment, but I would assume similar underlying mechanisms at work here.

Might this simply be a way that the market adjusts itself to lower expectations through outsourcing and over speculation so that America will not rebel at a two tier society?

Yes, that's likely to be the case. It also may be the market's way of returning America to a more traditional way of social organization. Historically, I'd have to say that a large middle class seems to be an aberration and that a 2-tier society (or possibly a 3-tier society) is closer to the norm. It seems that we've typically relied on wars and diseases to keep the lower classes from becoming too onerous (culling the population and keeping the masses in an 'us vs. them' mode of thought while making sure the 'them' is never the upper class that controls the country (both directly and indirectly). There also seem to be religious connotations to the act of war, in particular, that may be relevant also. I believe you've tried to discuss this before in one context or another.

Is Canada next?

I'm not sufficiently conversant with Canadian society to attempt an answer to this. Perhaps some others could?

I still question whether this version of a market is really efficient.

I'm not convinced that efficiency of the market is really a significant consideration. To me it seems to be more about control/ differentiation of the classes (us vs. them mentality again), and possibly other things.

Are the Chinese the future with their communist committees of technocrats?

Seems to be the future for China, at least for now. I don't think this model could be easily imported to America at this time. Too much anti- science demagoguery that has been used to gain and maintain influence.

Are Europeans epigenetically equipped to deal with the entrainment that the average Chinese accepts as normal and good?

I don't think we even need to rely on epigenetic explanations to allow for this. Cultural differences and background learning will account for it quite nicely, with a liberal sprinkling of symbol manipulation and cultural-level brainwashing.


Barry




REH

From: [email protected] [mailto:[email protected] ] On Behalf Of Robert Stennett
Sent: Wednesday, November 24, 2010 1:29 PM
To: EDUCATION RE-DESIGNING WORK INCOME DISTRIBUTION
Subject: [Futurework] declining incomes....

Two articles came to me today from different sources. Taken together, they paint a bleak future for working-class and middle- class people for the foreseeable future. Comments?

http://www.huffingtonpost.com/robert-l-borosage/americas-confidence-defic_b_787987.html?utm_source=DailyBrief&utm_campaign=112410&utm_medium=email&utm_content=FeatureTitle&utm_term=Daily+Brief

"The furious debate over how best to cut the deficit illustrates the point. The debate is about how we best enforce austerity.....This is a debate about who takes the hit. It is likely to turn ugly. There are progressive answers and regressive ones; some that make more sense, and some that make less.....it is possible to balance the budget by taking more from the Pentagon, hiking corporate taxes, and preserving Social Security....This debate rises from what has become a bipartisan elite consensus, reinforced by a multimillion dollar public relations campaign seeded by Pete Peterson, a Wall Street billionaire, who has been rousing alarms about deficits for decades, and is intent on using the current crisis to enforce the turn to austerity. But if there is one thing we should have learned over the years, it is that Americans should be particularly wary about bipartisan elite consensus...."


http://www.commondreams.org/headline/2010/11/24-2

The outlines of a massive new structural downshift in wages are emerging more and more clearly.

The largest wage-cutting wave since the Great Depression has already been sweeping the United States for the last couple years in response to the Great Recession. At small firms, many of these pay cuts have been viewed as a temporary means of reducing costs until the recession is fully ended.

The pervasiveness of this trend undoubtedly leads much of the public to assume large corporations are merely seeking the same temporary relief as small firms when they demand concessions in high-profile negotiations. The workers' pay will surely rise back to previous levels when the situation improves for the company, as occurred during the 1980s, right?

Not this time around.The recession camouflages a far more insidious and long-lasting corporate strategy: Instead of temporary pay cuts to get through a few tough months, major corporations have something very, very different in mind.

As NY Times economics reporter and The Disposable American author Louis Uchitelle wrote on Sunday, major firms are on the verge of consolidating a long-sought goal with a two-tier wage system:

The managers of some marquee companies are aiming to make this concession permanent. If they are successful, their contracts could become blueprints for other companies in other cities, extending a wage system that would be a startling retreat for labor.


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