Roman mentioned absolute vs. relative surplus value. That is indeed the key to discussing Social Democracy. If the capitalists need to rely on brute labor to produce their commodities -- where workers have no discretion -- then Social Democracy will not have much of a payoff. In this sense, Rakesh is definitely correct.
If however industry relies on workers' skills and discretion, then SD will work better. Doug sent a URL for Krueger and Mas's article on Bridgestone-Firestone showing that the harsh treatment of the workers may have been responsible for the defective tires. That story is relevant here. Rakesh says that SD will not work in the long run. Nobody here said that it would. It resolves some contradictions, which, as is the case in capitalism, create others in its train. Neither SD nor Pinochet/Reagan capitalism is a final answer. This brings us back to the discussion that set off the thread on crises. Capitalism has proven resilient and has withstood a number of shocks over the centuries. Marx wanted revolutionaries to act as midwives, but the gestation period has been longer than he predicted. Our challenge, then, is more difficult than he expected. Finally, I am learning from the discussion. Thanks to all concerned. -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901