File spoon-archives/marxism-thaxis.archive/marxism-thaxis_1998/marxism-thaxis.9801, message 242


Date: Mon, 12 Jan 1998 11:15:40 -0500
From: Doug Henwood <dhenwood-AT-panix.com>
Subject: Re: M-TH: Doug on Mattick


Rakesh Bhandari wrote:

>And yes, I am sorry to accuse you of chauvinism towards the US working
>class. I am reacting to your suggestion that as  the consequence of the
>Asian crisis will be US recolonization, US wage struggles  will have even
>fatter profit margins to take a bite out of. Yes, this is only implied in
>your posts, but I take it as a reasonable reconstruction of your argument.
>If not, then correct me.

If the crisis turns out as the U.S. elite publicly hopes, with the
subordinate annexation of the former tigers ("Korea is now owned & operated
by our Treasury - that's the positive side [of this crisis]" - Rudi
Dornbusch), then this will probably fatten U.S. profit margins. Costs of
production in Southeast Asia have been more than halved, and U.S. MNCs have
less competition to worry about.

How much of these fatter profits would be available for labor? I wonder.
The profit inflation of the last 5 years has come with only minimal real
wage increases. Despite fat profits and tight labor markets, which
"objectively" should put labor in its strongest bargaining position in a
genderation, unions are still fighting for their lives, and the U.S.
working class in general has low expectations and no confidence. U.S. MNCs
most likely to benefit directly from the Asian collapse have either a small
domestic workforce (e.g. Nike) or aren't unionized (electronics - and lots
of those firms have only high-end workers in the U.S.). Employers will be
able to point to cheaper-than-ever competition in Asia, even if they're in
no position to take advantage of it.

Doug




     --- from list marxism-thaxis-AT-lists.village.virginia.edu ---

   

Driftline Main Page

 

Display software: ArchTracker © Malgosia Askanas, 2000-2005