Wages have an odd histroy in economic theory.
In the 18th Century, wages were defined as: that amount of money
needed to keep a worker and his family ALIVE! In other words, a real
living wage!
In the 19th Century, wage labor was usually meager, and often
involved women and children working in "the mills."
FOR MOST OF HUMAN HISTORY WAGE LABOR WAS REALLY A FORM OF SALVERY IN
THE FORM OF INDEBTURED SERVITUTE; AND WAGES WERE STRICTLY FOR THE
LESSER CLASSES, THOSE WITH MENTAL OR CHARACTER IMPAIRMENTS.
For the most part the only way to get ahead was though ENTERPRISE.
This could be a craft or a trade or some kind of merchant activity.
And, of course, FARMERS WERE ALL SMALL BUSINESS PEOPLE, then. Even
if they were only share croppers.
As I have said, farmers were so big pre-1900, that they were a social
class instead of, currently, just an industry group.
Small towns were filled with "the farmer-merchant class."
Small Manufacturing abounded in it's various forms. Most production
was local.
THEN THINGS CHANGED:
With the factory system and mass production the excess population
gravitated to WAGE LABOR.
At first the wages were low. But, then through wars and depressions,
unions sprang up.
FINALLY, THERE WAS THE GOLDEN AGE OF WAGE LABOR: FROM ABOUT 1940 TO
1980.
WAGE LABOR IS STILL WITH US, BUT IT IS UNDER PRESSURE FROM GLOBAL
CHEAP LABOR.
HERE'S THE POINT:
WILL WAGE LABOR SURVIVE IN THE CURRENT GLOBAL ECONOMY, OR WILL IT
REVERT TO THE "MEAN" AND BECOME MERELY A WAY OF SURVIVING FOR THE
LOWER CLASSES; INDEED, AS IT WAS FOR MOST OF HUMAN HISTORY!
When capital employs labor, labor is by definition "SHORT CHANGED."
Any worker must produce more than he is paid, if profit for the
enterprise is to be had.
LESS PAY, MEANS MORE PROFIT.
THUS IT HAS ALWAYS BEEN.
But, what about CURRENT CONDITIONS. Can Middle Class Consumerism
survive in the coming low wage global economies?
Will cheap labor produce a glut of goods, and a downward spiral of
deflation, even while the central banks print money like mad to stop
it. And, alas, eventually cause a galloping commodity inflation in
the process!
These are the real issues we should be discussing.
NOT THE G-MAN'S ABILITY TO LEVITATE THE DOW FOR A FEW MORE YEARS!
CAN WE REVERT TO THE "SMALL BUSINESS" MODEL ECONOMY THAT WORKED IN
THE 19TH CENTURY?
WHAT ABOUT THE "BIG BOX STORES?" THE WALMARTS AND MC
DONALDS OF THE WORLD.
WE SEEM TO HAVE ELIMINATED ANY POSSIBILITY FOR SMALL BUSINESS SUCCESS;
EVEN WHILE WE ARE ELIMINATING THE "HIGH WAGE MODEL" THAT REPLACED THE
19TH CENTURY FARMER-MERCHANT SMALL BUSINESS ECONOMY.
SO, CAN MODERN CONSUMER CAPITALISM SURVIVE, IF WAGES REVERT TO THE
HISORICALLY "MEAN" (ie. STINGY) LEVELS OF THE PRE-CONSUMERIST ECONOMY
PRIOR TO SAY 1900? Recent data seem to say: NO.
This need some SERIOUS discussion. ASAP.
But, of course, there is little appetite for it among the corrupt
political classes at this time.
It will take a major crisis to put this on the front burner. But by
then, it could be "too late."
