Re: [OPE] Mastering Marxian Economics

From: Gerald Levy (jerry_levy@verizon.net)
Date: Sun Jul 27 2008 - 10:36:49 EDT


Hi Phil:

Here's the analysis from a recent article on the current crisis 
which I  referenced in my last post and objected to:


"Unless the government goes back on this implicit guarantee, the 
lion's share of mortgage losses will now be paid by U.S. taxpayers, in 
the form of interest payments on the extra funds the Treasury will 
need to borrow inorder to cover these losses. This does not mean, 
however, that the working class will ultimately foot the bill. Under 
capitalism, wages and salaries are ultimately governed by economic 
laws that higher taxes do not suspend.Thus, the extra government 
borrowing isn't likely to have much effect on the*after-tax* income 
of working people. If taxes increase, their pre-tax incomes are likely 
to increase as well, so that the bill will ultimately bepaid by 
employers".


You don't accept that nonsense, do you?
 
In solidarity, Jerry
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