Behind high profits are low real wages for most categories of production
workers (during a period of good economic growth).
These low real wages are the product of – in part – a changed cultural
landscape. This, in turn, was consciously created by firms and their friends
in the 1970s and 1980s.
Firms can’t just treat their workers badly. They must have “reasons” that
are seen as justified by society as a whole.
A whole set of reasons for treating workers badly are now accepted ‘by
society’ (or at least by the mass media).
The 1970s inflation gave us: “We must fight inflation (by keeping wages from
growing too fast).” OPEC actions in the 1970s and imports into key
industries in the 1980s (due largely to the strong dollar) gave us “We must
win against those foreigners (by keeping wages from growing too fast).”
The latter also taught firms that if they could CLAIM financial trouble,
they could often successfully push for lower real wages (even if the firm
really wasn’t in financial troubles). This gave us, “We must keep wages low
because of our financial troubles, but it really isn’t our (i.e., the
firm’s) fault but is external circumstances (globalization, recession, etc)
force us to act this way.” Globalization is often used today in this way –
“Don’t blame us as we are forced to act this way by the even increasing
globalized economy, bla, bla). Sometimes I think “globalization” is less a
description of ‘the facts’ than an ideological tool used by firms against
workers.
Also important is the rise in the 1990s of the CULT OF THE STOCK MARKET.
“The stock market demands that we …. You see it really isn’t our fault – it
is the stock market’s fault – and we are all, after all, now stock market
investors as the mass media tells us so ….”
Eric
Eric Nilsson
Economics
California State University, San Bernardino
San Bernardino, CA 91711
[EMAIL PROTECTED]
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