You Can Only Push People So Far

We're living in a tinderbox of inequality. A good long read on political economy.

The Coercive Power of Capitalism

"And this might put the "failure of capitalism" theme in context. If you have a system that requires that people sell their labor as a condition of survival, yet fails to provide enough opportunities to sell labor to go around, you have conditions for revolt. Hungry, desperate people having nothing to lose. That, and not charity, is the root of the welfare state, to provide a buffer for when the capitalist system chokes up and presumably on a short-term basis, fails to provide enough jobs (that and to provide for people who are infirm, handicapped, or otherwise cannot work, which communities in England did in the early modern era). So you can see the obvious tension: the capitalist classes in America, to increase their riches further, have been squeezing workers harder by not hiring as they did in the past. We've never had a "recovery" in the post-WWII era with so little of GDP growth going to labor (meaning both hiring and wage increases). In the past, the average was over 60% and the lowest was 55%. I haven't seen a recent update, but the last figures I saw was that the level for this "recovery" was under 30%. Yet simultaneously, theres's a full-bore effort on to gut the remaining safety nets. If this isn't a prescription for social and political instability, I don't know what is."

http://www.nakedcapitalism.com/2013/10/the-coercive-power-of-capitalism.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

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