[Marxism] Why is an economy benefited by exporting?

[Barry Brooks]

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...China needs many years to restructure its export-dependent economy

Why is an economy benefited by exporting what it produces? Because that allows
hyper-active full employment and wage dependence. Also, because the money that
comes in as the goods go out benefits those who are in it for the money.

Without those exported goods the people are poorer, but the money guys are
richer. Serve the rich?

Barry




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Re: [Marxism] Why is an economy benefited by exporting?

[David Picón Álvarez]

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On 17/10/2010 18:09, Barry Brooks wrote:
 Why is an economy benefited by exporting what it produces? Because that allows
 hyper-active full employment and wage dependence. Also, because the money that
 comes in as the goods go out benefits those who are in it for the money.

I'm not entirely seeing this. Export-driven economies like Germany and
Japan have comparatively higher rates of equality (gini coefficients, et
al) than demand-driven economies like US/UK. Take into account that the
alternative to exports is, these days, financialisation and services,
and those imply a parasitic non-productive sector in the first instance,
and a high level of intensive exploitation in the second. While exports
require industry and thus the concomitant changes in the organic
composition of capital, services are not very subject to introduction of
dead capital in productive process, thus the only way to maintain or
increase the profit margins requires the sharp increase in exploitation
(more time, more speed, etc). Industrial workers can, at times, mitigate
this somewhat.

--David.


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Re: [Marxism] Why is an economy benefited by exporting?

[S. Artesian]

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I don't see it either, but not for those reasons.  An export-driven economy, 
like Germany or Japan is NOT an alternative to financialization and 
services, as the case of Japan and Germany both illustrate. 
Financialization and services go hand in hand with export driven economies, 
and result from the some impulses driving the export functions.

As for export driven economies being comparably more equal... well no, 
they're not any more equal or unequal than demand driven economies.  There 
might be variations, differences, but they are not dependent upon levels of 
exports in an economy.  They are dependent upon the overall development of 
the capitalism, its interaction with the surrounding relations of landed 
property, and landed labor, and the history of its participation in the 
world markets.

And we might want to keep in mind that Japan, and to a lesser degree, 
Germany's response to slowdown and stagnation in the 1990s and early 2000s 
was to introduce more inequality, to tier their working classes among 
other notable things, one of those notable things being exporting, 
particularly in the case of Japan, massive amounts of capital to places 
like... China.

We might also keep in mind that prior to the 2008 contraction the US was the 
2nd or 3rd largest exporter in the world.

I don't understand Barry's remarks because I can't even make grammatical 
sense out of his concluding statement.

The problem with the article posted by Marvin is its typical equilibrium 
economics underpinning when in fact no such equilibrium is necessary for 
capitalism's success and no such lack of equilibrium is responsible for 
its distress.

Overproduction, now there's something that gets to the heart of both success 
and distress.

And overproduction is what is driving the manifestations of the currency 
wars which are masks for the trade wars which are representations of the 
profit wars, and which will be resolved not by any sort of reciprocity 
between the US and China, but by a real big fat nasty war.


- Original Message - 
From: David Picón Álvarez da...@miradoiro.com



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