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The lower wages or in the past chattel slavery keep prices down and make the firms more competitive...
We were under the metals back when there was chattel slavery...
Here is Hamilton from Federalist 12:
"The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of their political cares. By multiplying the means of gratification, by promoting the introduction and circulation of the precious metals, those darling objects of human avarice and enterprise, it serves to vivify and invigorate the channels of industry, and to make them flow with greater activity and copiousness..."
So the deal back then was keep your costs down and your product will have the best (ie lowest) price in gold and silver terms (price) and then you would attract the gold and silver to your firm and/or nation (quantity)...
No more chattel slavery and we are no longer under the yoke of the metals today, but today we have "earnings" as reported in USD terms... this is what the "more-havers" or pleonexians are going after "more of" today... as opposed to mass measures of the metals back when there was chattel slavery..
iow firms have to keep the costs down to offer produce at low prices (price) and then the low price firm's sales are robust and lead to higher earnings (quantity)...
You make a bicycle for $500 and sell it for $1000 (price) and only sell one and make $500 (quantity)... then you drop the price to $750 (price) and now sell 4 of them and make $1000 (quantity)....
youve doubled your earnings but your real terms (price) is reduced... this reduction in real terms applies to both "labor" and "capital" to put it in Marxist terms...
These pricing decisions made by the international firms in order to increase earnings (quantity) end up effecting the exchange rates (price) between nations where the currency exchange rates "float" due the regulatory effect the volatile prices have on the govt fiscal agents financing the trade inventories...
I would add that to regulate this justly, iow letting this system operate this way while still imposing socio-economic justice via our authority, requires some form of what economists might term "capital controls"... and right there you lose all the "free market" Darwinian libertarian "invisible hand" morons politically...
2 comments:
The lower wages or in the past chattel slavery keep prices down and make the firms more competitive...
We were under the metals back when there was chattel slavery...
Here is Hamilton from Federalist 12:
"The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of their political cares. By multiplying the means of gratification, by promoting the introduction and circulation of the precious metals, those darling objects of human avarice and enterprise, it serves to vivify and invigorate the channels of industry, and to make them flow with greater activity and copiousness..."
So the deal back then was keep your costs down and your product will have the best (ie lowest) price in gold and silver terms (price) and then you would attract the gold and silver to your firm and/or nation (quantity)...
No more chattel slavery and we are no longer under the yoke of the metals today, but today we have "earnings" as reported in USD terms... this is what the "more-havers" or pleonexians are going after "more of" today... as opposed to mass measures of the metals back when there was chattel slavery..
iow firms have to keep the costs down to offer produce at low prices (price) and then the low price firm's sales are robust and lead to higher earnings (quantity)...
You make a bicycle for $500 and sell it for $1000 (price) and only sell one and make $500 (quantity)... then you drop the price to $750 (price) and now sell 4 of them and make $1000 (quantity)....
youve doubled your earnings but your real terms (price) is reduced... this reduction in real terms applies to both "labor" and "capital" to put it in Marxist terms...
These pricing decisions made by the international firms in order to increase earnings (quantity) end up effecting the exchange rates (price) between nations where the currency exchange rates "float" due the regulatory effect the volatile prices have on the govt fiscal agents financing the trade inventories...
I would add that to regulate this justly, iow letting this system operate this way while still imposing socio-economic justice via our authority, requires some form of what economists might term "capital controls"... and right there you lose all the "free market" Darwinian libertarian "invisible hand" morons politically...
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