Quoting Charles Brown 4 Jun 2007 . . . 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 ? . . .
GK: with respect to Germany: the situation was not papered over with funny financial money, in the sense of, generous money creation a la Greenspan and generous capital imports from the rest of the world, as in the case of the United States. Labour unions and other critics have pointed out that, for many years, there has been a shortfall of domestic demand in Germany (due to stagnating wage levels and stagnating public pension payments) and that (modest) GDP growth has been largely due to export earnings. _________________________________________________________________ Windows Live Hotmail. Now with better security, storage and features. www.newhotmail.ca?icid=WLHMENCA149
