On 2012-11-22, at 2:47 PM, Carrol Cox wrote:

> Capitalists will cut wages & benefits as low as
> working-class power allows them to do..."Globalism"
> reflects one of the strongest assault on the working class in the history of
> capitalism, and it is an assault which cannot be turned back by any "normal"
> means but only by direct action of a militant working-class. 
> 
> That is the point of departure for useful thought at this time.

A couple of thoughts:

1. There are economic as well as political limits to wage and benefit cuts. 
Severe austerity inevitably breeds political protest, as today in Greece and 
the other European debtor nations. But capitalists also have an inherent 
economic incentive not to drive mass purchasing power so low as to make any 
kind of recovery impossible, destroying profitability and collapsing the 
capitalist economy in chaos. Related economic and political considerations will 
at some stage cause an easing of the capitalist offensive against the working 
class. The debate at the top between Keynesian liberals and "austerian" 
conservatives generally turns on when the screws need to be loosened. 

2. Often overlooked also is that, in better economic times, reforms do not 
result exclusively from pressure from below. That is a necessary condition, but 
I don't know of a single instance when such reforms have not required the 
consent of an hegemonic liberal wing at the top which recognizes that the 
reforms, tailored to the system's needs, will strengthen rather than weaken it. 
When establishment liberals conclude otherwise, they join with their fellow 
conservatives to ignore and, if necessary, repress the movements agitating for 
reform. 




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