Re: (OPE-L) Re: tendencies for equalization

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Thu Sep 16 2004 - 05:08:52 EDT


Gerry
The same factors that Anders discusses for Scandinavia were operative
in the UK in the 60s and 70s. I think they are characteristic 
features of a closed mature capitalist economy where demand
for labour will tend to outstrip supply and place the 
working class in a strong bargaining position.

The tendency was only reversed in the UK by the conscious
policy of the Thatcher government to open up the movement
of capital internationally, allowing abundant external labour
elsewhere to be used as a bargaining tool

One has to recognise that the current contrary development,
one characterised by an oversupply of labour is a relatively
short term phenomena, that will come to an end as the 
latent reserve army of labour in China and India is absorbed
into capitalist industry.
The attached graph shows a logistic fit to the growth of
the industrial share of the population of China. It indicates
that the Chinese industrial population will be mature by
the middle of the century. With current growth rates
it may occur even sooner. At that point, the  nature of
capitalism on a world scale will shift back to the mode
of development shown by the north European countries in 
the 3rd quarter of the 20th century. The supply of labour
will be constrained leading to a greater strength of the
international trades union and labour movement politically.

It is worth looking at the most developed capitalist economies
since these show the system at its extreme - de te fabula natur.

-----Original Message-----
From: OPE-L [mailto:OPE-L@SUS.CSUCHICO.EDU] On Behalf Of Gerald A. Levy
Sent: 15 September 2004 13:56
To: OPE-L@SUS.CSUCHICO.EDU
Subject: (OPE-L) Re: tendencies for equalization

Hi Anders.

> And I think that empirically the development of wages in the Nordic
> countries (espec. Norway and Sweden) after WW II can be interpreted to
> support Ian's point. That is - when labour movement is strong - when
> workers are free to form the wage system - there will be (and still
is) a
> strong urge for wage equalisation. The narrowing of wage differentials
is
> very marked from 1945 - 1985. And this was not the result of Nordic
> "harmony" - on the contrary - in Norway we "lost" more workdays in the
> thirties than any other European country - there was very hard class
> confrontations. Same in Sweden.

The post-WWII experience that you refer to in Norway and Sweden
was a consequence of  the deliberate strategy by trade unions to reduce
wage differentials (i.e. 'wage solidarity').  The influence of the trade
union  leadership in the (social-democratic) government was also an
important factor in determining state and corporate responses to these
workers' struggles.   While the historical experience that you refer to
is
real enough for these individual capitalist social formations, on what
basis
can you claim that  there is a  historical _tendency_ that there will be
reductions in wage  inequalities under capitalism as a consequence of
workers' striving for equality?  I.e. on what basis can you claim that
there is a general tendency for wage equalization rather than a contrary
claim that these experiences are the consequence of highly contingent
factors associated with workers struggles in individual (and, in
significant
ways, atypical) capitalist social formations?

In solidarity, Jerry






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