GK: the situation in Germany: As the leftist critique keeps pointing out, over the last two decades profits in Germany have increased significantly, while real wages have been near stagnant. Productivity increases have not been passed on to the workers.
How have profits been realized? (a) in manufacturing, through vigorous exports (cars, machinery, biotechnology, etc.) (there is a frequent reference in the media to Germany as an export world champion) and layoffs. (b) in services, (1) through selling of cheap imports from Asia and Eastern Europe (a German equivalent to Wal-Mart is the Aldi chain and other similar ones), aided by a strong Euro; (2) through employing cheap labour from Eastern Europe (e.g., in construction, transport) and growth of the low-wage sector (there I no legal minimum wage) and precarious employment. ^^^^^^^ CB: I just wonder, the more layoffs and the less paid in wages, the less money the workers have to buy the commodities that realize the profits for the companies. How do lower wages avoid this problem for realization ? Doesn't it get papered over with funny finanical money to a large extent ? I assume that the mass cosumers of commodities that are the means of personal consumption are the wage-laborers. To realize the profits, most must be bought by wage-laborers.
