Labor then is in surplus supply, as Marx predicted. It is displaced by capital and lower waged labor on distant shores. Its marginal productivity in aggregate and across the labor pool has fallen, even though for some few working with much capital, it has risen. There are too few jobs. Unemployment is high. Indeed, many have dropped out of the labor market altogether. We need to consider the labor pool as a whole and the impacts on it. On balance, it has suffered net losses in this process.
The Randian notion of no redistribution of income in this situation is therefore absurd. It is crazy. There is no significant real class of either hyper productive gainers or lazy, indolent and base losers, though exemplars of each can be found to muddy the waters in ad hoc fashion. More, the situation is some wallow in unearned income and the fruits of it and much of the labor pool is cut out of the productive process entirely because of a surplus of labor caused my more labor becoming available and by capital being substituted for labor.Wandering the Oceans
Ayn Rand's Central Idea Is Wrong
posted from Pago Pago, American Samoa