RE: Unemployment. Honest debate.
August 31, 2011 at 2:23 pm
(This post was last modified: August 31, 2011 at 2:24 pm by Anomalocaris.)
Quote:So where do we draw the line? Happiness in Slavery?
If by drawing the line, you mean creating an artificial level in the scale of poverty and subsidizing anyone falling below that line, then one could only possibly hope to hold this line if one's overall economy is developing in such a way that its relative competitiveness and productive efficiency is increasing comparing to its international competitors. In other words, the competitive portion of the economy can be expected to produce increasing amounts of surplus value with which to subsidize the uncompetitive portion of the economy.
It is impossible to draw such a line and hope one could possibly hold it for very long in situation where the overall economy's competitiveness and relative productivity is declining compare to major international competitors, like our economy is now thanks to the rise of low wage, but extremely competitive economies like China. In other words, by diverting resources from the competitive portions of the economy to subsidize the uncompetitive portions of the economy, one weakens the ability of the competitive portions of the economy to keep up with competitors, thus cause a long term decrease in the amount of surplus value in the economy with which to subsidize the uncompetitive portion of the economy, until there is simply not enough surplus resource to maintain the subsidy.
So as long as China's overall competitiveness is rapidly gaining on ours, it doesn't matter where we draw the line, we can't hold the line. So we might as well not count on any lines we draw.
The only solution is hinted at in paragraph one. To try to ensure "one's overall economy is developing in such a way that its relative competitiveness and productive efficiency is increasing comparing to its international competitors".