Boredom and Work

“Are we there yet?” “Why? Are you bored?”

Boredom. I never got that. How can any conscious being be bored? I think it is a matter of perception and attitude, maybe even choice. I recall hearing of people retiring from a job they had for most of their adult life, then dying within a few months, essentially because they had “nothing to do” and became despondent about their lives. They had so closely identified with and focused on their jobs that they had lost interest in the rest of the world. Separated from the source of their identity, they were lost.

Did they die of boredom? I don’t know. But I am sure that they had become unable to engage with the world beyond their job. Jobs, jobs, jobs. There are the “job creators” of corporate fiction; there are also the job destroyers of corporate outsourcing, moving capital to where the cheapest labor resides. Oh, but they are one and the same. Especially in today’s corporate dominated American culture, the growing power of the largest corporations and the wealthiest individuals results from the fact that the rest of us depend upon them for most of the shrinking number of well-paid jobs.

moderntimes_charliechaplin

Charlie Chaplin ~ Modern Times

As automated production and manufacturing are outsourced overseas to the poor nations with the lowest wages, the giant corporations, though flush with cash, keep demanding of their congressional lackeys lower taxes, even as they dodge most taxes anyway. They blame “government spending” and “entitlement” programs for the failings of a corporate economy that provides fewer and fewer jobs with a living wage. Senators and Congressmen openly admit that unless they pass “tax reform,” driving up the national debt, their donors will cut them off. And they probably will. But that’s another story.

What, exactly, is there in the world that is boring?  I thought I knew once when I was about 15 years old. It was 1955. My friends all had minimum-wage jobs, paying about 75

1951 Ford 2 dood sedan_6287_13x1.jpg

1951 Ford 2 door sedan

cents per hour. Or they had none at all. I was quite excited. My father had gotten me a summer job with his friend, a general contractor. I was paid at union scale, at that time around $3.65 per hour, almost 5 times minimum wage. That first summer it was easy to save up the $300- I needed to buy a used 1951 Ford as soon as I got my drivers license. If we all chipped in a quarter for gas, 3 or 4 of us could cruise all night until curfew. Nothing boring about that!

I remember clearly one hot summer day; I was at the bottom of a ditch the foreman had assigned me to dig. I can still picture myself there. He left me all alone in the hot smoggy Southern California sun to complete the ditch, for some drainage line at a hillside suburban home while he got some other workers started on another job. That ditch must have been 8 feet deep; I could barely launch a shovel full of dirt over the edge.  I wondered how long I’d be stuck with this ‘boring’ work.

Then I came upon an idea; I wondered how evenly I could cut the edges of that ditch while digging it as ordered – an interesting challenge for a kid trapped in a ditch with nothing else to do and nowhere to go. The day went much quicker as I faced that inconsequential challenge and learned how to not be bored.

So many of today’s jobs are boring because all ability to apply talent or skill to them has been taken out by automated processes, reducing them to simple mechanical performance with even less potential for creativity than digging a ditch. They are mostly at or near minimum wage too. And, minimum wage today, at $7.50 or $10- per hour buys less than that 75 cents did in 1955. Then, a 10-cent cup of copy was a small fraction of the hourly minimum wage. Today, a Starbuck’s coffee can cost you the equivalent of an hour’s work. That is not boring; it is intolerable.

The Upside-Down Economy

The idea that the financial markets are the essential force that drives economic growth and progress, has dominated political thinking for too long. The financial markets and their agents have dominated politics and the Congress over recent decades more than ever before. After all, it took several decades for the financial elite to accomplish the complete abandonment of the controls instituted to prohibit the financial market excesses that caused the Great Depression. We are at greater risk today of an even bigger crash than 1929.

The U.S. and world economies are stumbling on the precipice of part II of the “Great Recession” of 2008. The global integration of financial markets and institutions put the entire world at risk and none of it has any democratic foundation. It is all happening against the will of the people and in opposition to the public interest. The massive contraction of the middle class and the swelling of the ranks of the poor are now undeniable. The so called “recovery” has been all about the financial elites and the stock market. Corporations are awash in cash. Those who lost jobs that had a livable wage can now only find minimal-wage jobs and must work at least two to pay rent. The real economy falters and the financial markets are built on quicksand.

The Disappearing Real Economy

The economy is upside down because real economic activity – the production and exchange of goods and services needed by the people in their everyday lives – no longer drives the global economic system. The most powerful economic force in the world today consists of the actions of multinational corporations attempting to continually grow consumption by reducing the costs of growing production. International “free trade” is in effect the removal of production from the nation – outsourcing.

To minimize cost and maximize output, capital is moved to poor nations with the least labor costs and environmental controls. Economic “globalization” allows U.S. corporations to import cheap goods for our increasingly poor workers to buy at Wal-Mart with credit cards. That, of course, reduces the availability of production jobs here by exploiting the destitute elsewhere. While capital is easily mobile globally, labor is relatively immobile. The globalization of capital drives wages down so that U.S. citizens can only buy cheap imported goods.

Continuing down the ruinous path of the Wall Street financial elite is supported by a lot of political rationalization. The fact that work, pay, production, and consumption are what any real human economy is actually about, is simply ignored. On the one hand, we are told that capital must be free to find its “highest and best use.” That will enable the capitalists – falsely characterized as “the job creators” – to invest in new technology and production, thereby improving employment. Well, how has that worked out? The new technologies have mostly reduced the need for skilled labor in the U.S. The free international movement of capital – they call it “free trade” – has increased demand for unskilled cheap labor abroad. Who benefits? The wealthy investors in “globalization.” Who suffers? Workers everywhere suffer the loss of control over their lives and the inability to earn a living wage.

Feed the Rich, Starve the Poor

The myth that the super rich somehow need a tax break pervades the political discourse even though wealthy corporations and individuals pay less in taxes than ever. The delusion is that such public largess economically favoring the already rich would allow them to invest in the real economy. The “news” media – owned by the same mega-corporations that feed the super-rich – go along with that fiction even in the face of several decades of decline of American work, pay, production, and consumption.

All the while, the rich continue to get richer, paying less and less taxes, by controlling politics and indebting the nation. Both the U.S. Congress and the President are elected by having access to massive political funding by so-called “political action committees” (PACs). Legislation is actually written by the biggest financial lobbyists in the Congress – the lobbyists for the financial elite that is enriched by the “globalized” economy. Worldwide corporate theft, subsidized by the U.S. government, is a scam of unparalleled proportion.

Simply put, in a real economy it is income from employment that drives economic health. Employment provides individuals and families with incomes to buy the necessities and niceties of life. It is employment that produces goods and services people need. The income from employment allows consumption to drive production. Financial speculation among the super-rich has distorted the real economy by “financializing” it and ruined all that.

That is why the economy is so upside-down today. Financial speculation drives investment in cheap overseas production, leading to domestic poverty and declining ability to buy what is produced elsewhere. It is all driven by the greed of the financial elite, not by any national economic policy. Big investment banks’ speculating in abstract financial instruments – derivatives and the like – are allowed to create phantom money by depleting the real economy in the form of consumer and government debt.

In a real economy the Big Banks would be invested in actual productive activity. But because of outsourcing, underemployment, and low wages, workers cannot afford goods produced domestically as cheap goods from abroad flood the shelves of the big-box stores. At the same time, the propaganda of marketing and advertising encourage more and more consumption of less and less meaningful products. Low wages force reliance on consumer credit, increasing indebtedness to the corporations controlled by the financial elite. It is an upside-down economy.

Growing suppression of public education and critical thinking facilitates the manipulation of consumer behavior. People keep trying to buy whatever represents the imagery of the consumer culture that dominates their experience. “Affluenza” afflicts some of the few who experience new wealth. But the pervasive desire for the trappings of affluence – driven by pervasive marketing propaganda – drives consumer behavior, leaving little room for “free will” in economic behavior. Mass media images dominate consumer as well as political thought. Cultural images of “the good life” all involve increased unthinking consumption of corporate products.

Converging Crises and Catastrophic Collapse

In the present context, certain fundamental factors are at work. The vast accumulation of “phantom wealth” by the Big Banks via the “bailout” has encouraged further speculation and facilitated more economic concentration. The easy availability of cheap loans to corporations already awash in cash has not resulted in their investing in the domestic economy. All that cash and cheap credit is used for mergers and acquisitions, which further concentrate corporate wealth. A stock market booms while the main-street economy remains stagnant with vast numbers of workers unemployed or underemployed. Stock market growth is without foundation in the real economy. It has little basis in actual economic value, its growth is speculative, and is at increasing risk of collapse.

After the greatest financial heist of the public treasury ever, we must ask why such vast accumulated wealth has no benefit to the real economy. Overextended consumers can no longer rely on home equity and credit cards to make up for those decades of stagnant to regressive wages. It becomes clear that another few hundred million more dollars in the coffers of billionaires will not be invested in domestic production for the suppressed consumer demand for necessities that results from stagnant domestic employment and over-indebtedness.

It is not as if this is all happening in the abstract. Real world allocation of capital has planetary consequences. The distortions of mass production induced by extractive capital are global in scope. With a world population of over seven billion people and the drive to emulate Western patterns of consumption, the carrying capacity of the planet’s ecologies is already exceeded. Whatever one’s interpretation of the world’s economic system and imagined alternatives, the convergence of overproduction, consumer culture, overpopulation, looming crises of food production, resource wars, and climate chaos, all foreshadow a catastrophic collapse of existing economic and social systems. Only a massive human effort to reorganize the way we live on this planet can avoid human tragedy on a scale as yet mostly unimagined.

Making Money, Making Time, and Making a Living

For many Americans, the time has come to reassess our relations with the economy that is being driven off the cliff by the creation and hoarding of phantom money by the very few and catastrophic burden of debt for the rest of us. The economy is controlled by the Big Banks and it has not worked for ordinary citizens. The economy of the plutocrats has kept the nation in debt. At the same time it has made it more and more difficult to make a living by simply working at a job.

This situation raises several serious questions about the nature of money itself and how it is created, managed, distributed, and used in our economy. Most of us are not schooled in the technical aspects of ‘money and banking’ or the philosophy of money, neither of which quite rises to the level of science. But we know that something is very wrong with the way money flows – mostly up – in today’s economy. Just like blood in our arteries and veins, money must circulate broadly to assure a healthy society. One might consider today’s mega-banks as aneurisms in the economy’s aorta, poised to burst.  Surgery is required.

Time is Life
Some recent criticisms of contemporary economic culture have looked at money from the larger perspective of life itself. We have all heard the cliché, “Time is money.” An alternative view is that “Time is life.” What does that mean? Well, time is all we really have in this life and what we do with that time is our life. When we complain that we “don’t have time” for things we deem important, it is because we do not make time for them. Our time is mediated by money, which controls our access to the essentials of living. [1] Thus, money controls much of our life, so political control of the money system is critical for making a living — life.

The cult of American Individualism would blame the victim of poverty for not exercising her/his “individual freedom.” But where is the individual freedom of the increasingly common fast-food or other service worker who has to work two jobs just to pay the rent? Such admonitions assume a perfect world in which anyone who works hard can achieve anything. As Barbara Ehrenreich[2] and others have demonstrated, for many Americans, hard work is simply not enough.

You can’t make time you do not have. If you have to work at minimum wage or less, it is necessary to work most waking hours to avoid homelessness. As middle-income jobs are “outsourced” to China or other super-low wage nations, the middle class shrinks because jobs with a living wage continue to disappear from the American economy. Corporate controlled international trade agreements such as NAFTA (North American Free Trade Agreement) and the new TPP (Trans-Pacific Partnership) supersede national sovereignty over environmental quality and worker rights. They are negotiated in secret because voters would not tolerate them if they knew of their terms. “When Corporations Rule the World,”[3] the people lose their basic rights along with power over their own lives and the ability to make a living.

What Christian Parenti [4] has called a “catastrophic convergence” of accelerating poverty, violence, and climate disruption is already producing chaos around the world. An impending sense that the party is over is also beginning to bring about a sea change in the image ordinary people have of their lives in relation to both the economy and the planet. Profligate consumption and waste are reaching their limits as resources have passed their peak of easy extraction. Increased costs of extraction cascade into manufacturing costs and cannot be controlled. Capital is moved to locations where labor costs can be reduced. But this results in post-industrial markets shrinking due to the loss of wages that would otherwise be used to buy products. It’s a downward spiral.

A major cultural reassessment is under way. The economy is obviously failing to serve the people. The concentration of wealth in the top 1% of the top 1% is now greater than at the onset of the Great Depression of the 1930s. It is unsustainable. Any economy is sustained by the effective circulation of money as the means for allocating time for doing work. Capital exists only to the extent that labor organizes material – the production of value. Yet, our economy has become subservient to a financial elite that increasingly “makes” phantom money [false capital] by generating more debt without economic productivity.

The fundamental purpose of money in the economy has been subverted. Corporate media attempt to maintain the illusion that multinational corporate capitalism is just that good old Adam Smith version of “small business” and “free” markets in bucolic communities. But we are closer to a corporate police state than any imagined democratic capitalism. Whether they articulate it in such economic terms, people know that the system is rigged. They also know that it is the corporate control of the economy and political system that is doing the rigging. Not only do the people have little or no chance of making a living in that rigged system, but those who do so sustain the larger problem.

A living Economy to Thwart Climate Catastrophe
So, what is to be done? When a system is rigged the only way to break out is to turn away from that system. This is being done in little ways all around the country. Most scientists know that massive programs to stop or at least slow climate chaos must be initiated at the national and international levels. But the system is rigged against that as it accelerates toward the convergence of climate, economic, and population catastrophes causing mass starvation/migration, resource wars, and social chaos. Energy production and wasteful consumption must be severely curtailed, but how?

Parenti argues that: “We cannot wait for a socialist, or communist, or anarchist, or deep-ecology, neoprimitive revolution; nor for a nostalgia-based localista conversion back to the mythical small-town economy of preindustrial America as some advocate…Instead, we must begin immediately transforming the energy economy. Other necessary changes can and will flow from that.” (p. 241) Parenti, like so many others who see what is needed, fails to articulate how such a massive transformation can be accomplished. He says that it “will require a relegitimation of the state’s role in the economy.” But that is precisely what the power elites will not allow – except, of course, where that role entails the massive economic subsidies the state already provides to the mega-corporations. So, he is partly right and partly wrong. He is right to say that we cannot wait, but for what? He is wrong in assuming the energy economy will be transformed from the top without revolutionary change in the structure of political power.

First, we cannot wait for the federal government to act in the public interest – it is controlled by the corporate interests tied to the fossil-fuel economy. The energy economy must be transformed immediately, but how? Even if Bernie Sanders were elected president, the hypocritical Corporate Democrats and the magical-thinking Corporate Republicans would still be in control of legislation and continue to serve their corporate masters. Second, the only action that cannot be stopped by the political-economic elites is the grass-roots action of growing numbers of people organized to change their lives to make a living without depending on the corporate consumer economy. That is both very difficult to do and the only viable path available.

Parenti is right in saying that the immediate task is specific: drastically cut carbon emissions. But that entails a myriad of even more specific tasks, which if achieved will have arisen from below, demonstrating human resilience in the face of corporate-state paralysis. So much to do, so little time.
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1 David C. Korten, Change the Story, change the Future: A Living Economy for a Living Earth. Oakland, CA: Berrett-Koehler Publishers, 2015.
2 Barbara Ehrenreich, Nickel and Dimed: On (Not) Getting By In America. New York: Henry Holt, 2001.
3 David C. Korten, When Corporations Rule the World. 2nd edition. San Francisco: Berrett-Koehler Publishers, 2001.
4 Christian Parenti, Tropic of Chaos: Climate Change and the New Geography of Violence. New York: Nation Books, 2011.

Capitalist Culture and the American Worker

We are a Capitalist Culture. The entire course of the industrial era has been driven by capital investment in technologies and materials that together have increased economic production. In the U.S. – contrary to corporate folklore – much of that capital investment has been made by the government, often at the behest of business. Infrastructure was the primary focus. The federally funded railways were a major factor in the expansion of the West. The Interstate Highway System started by President Eisenhower, virtually guaranteed post-WWII economic growth and indirectly subsidized the boom in the automobile industry. The early years of NASA saw major new technological inventions and aerospace accomplishments by a government-funded mission-driven enterprise. Advances in the aviation industry, largely publicly regulated then, benefited greatly from those developments. Numerous aerospace corporations grew rich on government “cost-plus” contracts, all the while praising “free market capitalism” and “free enterprise.”

The allies had won World War II supported by U.S. government investment in rapid invention and deployment of new (mostly military) products, also generating full employment. The war economy produced many jobs after politically powerful capitalists forced unemployment-inducing cutbacks in the initially successful New Deal. Investment in productive assets is the driving force behind all economic development. Government investment of public capital – paid for by our taxes – has driven much of the growth of the U.S. economy. U.S. business has been a prime beneficiary of public investments over the nation’s entire history.

Corporate Capital and American Culture
Americans have come to believe that economic development has resulted only from the combination of private capital and personal invention. It is an unquestioned cultural assumption. Why? Because Big Corporate Capital now controls most cultural communication in the U.S.A. The interests of the biggest corporations dominate the content communicated in the mass media — also controlled by Big Corporate Capital. Corporate ideology is expressed in a variety of ways by twisting the ideas that would normally express core American values. The mass media implicitly support corporate agendas rather than the public interest, while sounding like they defend core American values.

A classic case of corporate capitalist culture distorting cultural values were the efforts of groups like the John Birch Society in the 1950s. Like the Birch Society, today’s Koch brothers’ front groups work to get “right to work” laws passed in most states. Who would not agree that everyone has a right to work? It is virtually a universal cultural value, closely tied to “American individualism.” However, the “right” of one person to work in a particular unionized factory or office – without joining the union or paying union dues – is not quite the same thing.

When a union negotiates with management for a living wage or safe working conditions, all wage workers in that business benefit from that negotiation. For a worker to have the “right” to not pay union dues or a fee for the cost of the negotiations that benefit him, that worker becomes a “free rider.” He or she benefits from the success of the group but refuses to pay his/her share of the costs of that benefit. Any one worker has a “right” to not contribute to the efforts of a united group of workers to achieve a living wage. But in that case, s/he should not expect to reap the rewards of that effort. Such blatant exploitation of the efforts of others is the height of hypocrisy. It is also a direct attack on the rights of all other workers to effectively bargain for reasonable wages.

Sure, one could point to some cases where a union has gained unjustified power. Unions, like any other organization, when they grow too big and powerful, tend to act in the bureaucratic interest, not in members’ interests. The teamsters under the ‘union boss’ Jimmy Hoffa come to mind as such as case . A man like Hoffa was rather similar to the likes of a Jamie Diamond or the CEOs of several other financial corporations today, who have ruthlessly exploited their positions as heads of their institutions. The main difference is that nobody had qualms about prosecuting corrupt union leaders. However, corrupt “Banksters” today seem immune to all but the mildest disparagement, no less jail time. Instead, we hear “nobody could have predicted the financial crisis,” when many non-corporate economists did just that as well as point out the corrupt nature of the behavior of the financial elite.

American Values: Minimum Wage and a Living Wage
Recent surveys make clear the American public’s view that workers should be paid at least enough to subsist – it is called a “living wage.” If you work full time, you ought to be able to pay rent and buy food, clothing, and shelter, the basics. Yet over the past several decades more and more jobs are at or near, even below in some cases, the woefully inadequate “minimum wage.” The power of corporations over the political culture coincided with the corporate takeover of the congress and many state legislatures. Wage theft is rampant in situations such as the fast food industry where workers’ power to defend themselves against abuse is at or near zero. That, of course, is where wages are extremely low and the supply of workers is much greater than the demand.

The pure apologists for capitalist culture even argue that there should be no minimum wage, so that the magical “invisible hand” of a “free market” in labor can find the “true value” of any particular job. In a civilized society, one would think, no job should be valued at less than is needed for survival. Yet many executives who have the opportunity to do so, pay starvation wages. I know small business owners who insist on paying their workers a living wage, even for unskilled jobs, when they could pay only minimum wages. But these are entrepreneurs who have consciences; they believe in the American values of fairness and mutual loyalty of employer and employee.

One retired business owner told me with great confidence that raising the minimum wage would be counter productive for low wage workers. They would simply have to spend extra on more expensive fast food because their higher wages would drive up prices. Others claim that raising the minimum wage would destroy their businesses, because their customers would not pay the difference. Most critics of a livable minimum wage claim it would be a damper on the economy. Yet in every instance where the minimum wage was raised significantly, unemployment went down as the local economy was stimulated by the increased demand.  The additional income is mostly spent on necessities in the local economy.

Conscientious employers have proven the living-wage critics wrong time and again. Their businesses typically thrive, both because of the better mutual loyalty between employer and worker, and because the business just runs smother and is usually more responsive to customers as well because the owner has a better attitude about everyone. The public knows that the employment system in the U.S. is rigged to squeeze the workers and disempower them. That is why a new movement for economic fairness and justice is growing. At the same time, growing numbers of low-wage workers are recognizing that the only way they can break out of the trap they are in is to organize themselves and protest en mass. Despite continuing massive corporate propaganda, unions may be on the rise again.

Outsourcing America, or Reviving Our Economy
In the current situation of a continuing “wage recession,” we observe corporations sitting on vast quantities of cash. They hesitate to invest it in production, since low wages have driven demand for basic products so low. Everyone knows that a low-wage worker must spend every dollar s/he is paid just to survive. Production depends on demand. Corporations send capital overseas to reduce production costs and attempt to sell cheaper goods to workers here who cannot afford them. A shrinking middle class trying to survive on unsustainable poverty wages cannot maintain high levels of consumption. The rich can only buy so many mansions and yachts. The super wealthy corporate elites park their riches in financial instruments that contribute little to the real economy that would otherwise need workers at livable wages.

It is time to reassess the entire framework of the dying American economy. Narrow short-term corporate interests are destroying the potential for capital to be invested in creating many needed jobs in this country. The nation needs to do much work in areas that serve the public interest – such as energy efficiency – providing livable wages in the process. A massive investment of existing capital in converting the carbon economy to self-sustaining energy production and conservation would require many jobs. The fossil fuel industry cannot and will not provide such jobs – they are in the public interest, not the fossil fuel industry’s interest.

The so-called free market is anything but free. Capital has been put to many uses that cost society far more than their value to society and now even threaten our survival. Capital enables and empowers social action. Only a realignment of the role of capital in the new economy can make a livable society possible.

Capital Contradiction: The Fundamental Flaw that Dooms the Corporate-Growth Economy

The corporate cheerleaders of the last stages of the dying unlimited-growth economy still argue that “growth” is necessary for a healthy economy. The role of growth in our economic culture seemed secure, until the cracks in its foundation grew ominous. Now it’s a big question.

As the argument goes, capital growth spurs technological innovation, which will allow people to work less and enjoy life more. A happy prospect – as I remember it from the 1960s. Industrial technology certainly has reduced the amount of labor needed as a component of production. So much can be produced with so much less labor than before industrial and office operations were automated.

Is All “Growth” Good?
But what are the benefits of labor-saving industrial technology for people? Who works less and enjoys life more today? Not even the capitalists, but of course they are driven not by need but by desire. The rest of us mostly work more for less pay, just to make ends meet, if that. All the benefits of efficiency have gone to the power elites. Their concerted efforts since the 1950s have destroyed the unions. So, little leverage remains for paying workers a living wage.  People don’t work less – if they have a job – they just earn less for the work they do and usually work more.

One result of less and less labor needed per unit of production is that more and more gets produced. But since less and less labor is needed, fewer and fewer jobs are available for workers. The quantity of goods produced grows right past the need for them to be consumed.  As population grows, there are more people looking for work.  But there are not more jobs. Unemployment and poverty result from overproduction when workers have a smaller and smaller role in the economy. More and more workers, regardless of education, find little meaningful employment. Many become trapped as “wage slaves” in jobs with below-subsistence buying power. This is worsened by the ability of capital to seek the lowest wage labor internationally, while most workers must find jobs where they live.

Overproduction causes pressures for people to over-consume. Many of the goods produced are not really needed – they result from manufactured wants. Less understood is the fact that many people, being under-employed or unemployed, cannot buy them anyway. The consequent loss of demand for goods is a drag on production, further weakening the demand for labor. But behavioral manipulation through marketing can be very effective in spurring consumption, as long as buyers have money. So, with depressed wages, heavily marketed easier credit availability has encouraged many to consume “beyond their means,” especially for food and rent.

A Crisis Delayed
At the dawn of the “age of automation,” back in the 1960s, enthusiasts promoted the myth that people would need to work less and have more leisure time. But many feared that factory automation and office automation would take away jobs. The great economic expansion of the 1960s through the 1980s generated more jobs and the impact of automation was dampened and delayed. The dot-com boom of the 1990s further delayed the impact of computer-aided design, production, and middle-management functions on jobs.  Capital increasingly outsourced the labor it needed to China and other low-wage nations.

But as more of the well paid manufacturing and technical jobs were lost to automation and to international outsourcing, wages continued to be depressed. Left to its own devices, capital finds ways to reproduce itself. As buying power was lost due to lower wages, consumer credit and second mortgage requirements were loosened and these forms of debt were heavily promoted. Consumption was increasingly driven by debt rather than income.

As corporate lobbying took over Washington, business tax loopholes proliferated.  With loss of revenue, government debt soared too, right along with consumer debt. Without new economic growth and rising wages, debt service becomes an increasing burden. While the corporate economy grew, wages continued to flat-line or decline, leaving worker-consumers in an ever-growing squeeze.

The march of labor-reducing technology is always assumed to be inevitable and good. Yet, with “free markets” in labor and with capital able to move globally to find the cheapest labor, a severe imbalance occurs.

Half truths are sometimes just false. For the claims of a comfortable life with fewer hours of work to be realized, the entire organization of the economy would have to be revised. Money would have to circulate much more freely among all the people. The means of distributing income and wealth would have to be altered so that not all of the benefits of increased productivity go to the top 1%.

The Time is Now
What the growth cheerleaders ignore is that we have reached a tipping point where the power of capital over labor has caused extremely depressed wages and high unemployment-underemployment. So, consumer demand is depressed. That in turn discourages investment in production – corporations are now sitting on huge piles of cash, afraid to invest without consumer demand. Well, corporations need production of a lot of the objects of artificially created ‘wants’ that marketing has generated in order to boost sales and profits. But workers have lost the necessary buying power. It’s a dead end.

As a society, we can no longer afford to produce all that stuff the remaining middle class workers keep in a storage locker because there is no more room in the garage. We need appropriate production of the objects needed in a post-growth stable ecological economy. That will in fact require a complete overhaul of the organization of the economy.

The inevitability of economic progress, whether in the predictions of Karl Marx or the vision of Adam Smith, is and always has been an ideological flaw in the thinking of those who have a particular interest in economic history. Anything is possible and some possibilities are far more problematic than others. The old assumptions must go. Only an ecological economy can work now.  How we can make that happen remains to be seen.

The Real Cause of Unemployment: Automated and Outsourced Over-Production

In a growth economy, new jobs are created on a regular basis because new production expands the employment base. In a shrinking economy, just the opposite happens. The U.S. and most of the industrial world have enjoyed the benefits of expanded production and employment for many decades, minus the occasional downswings of the “business cycle,” along with some deep depressions. That is the ‘conventional wisdom,’ and within a narrow framework it has worked until now.

However, in addition to sending jobs to low-wage nations, ‘improvements’ in the processes of design, production, and optimizing the supply chain – all of which involve reducing the labor needed for these processes – capital invested in advanced production technology requires less and less labor. That is the key contradiction in the growth economy. Once labor costs are reduced beyond a certain point, buying power can no longer keep up with production. The addition of capital mobility amplifies this problem.

Capital is mobile; labor, not so much. Sure, Mexicans come across the U.S. border seeking work because highly automated production of corn in the U.S. – with the help of government subsidies and NAFTA – allows U.S. agribusiness corporations to undercut Mexican corn prices, flood their grain market, and drive traditional Mexican farmers off their land. Then the same corporations buy up or lease Mexican farmland to produce crops for export to the U.S. – especially those requiring hand picking. Desperate farmers who lost their livelihood can be hired at below poverty wages; some of the remainder head for the U.S. with nothing but hope.

A win-win situation for the corporations and their capital is a lose-lose proposition for both Mexican and American workers and the price of their labor. But when capital moves from the declining cities where American manufacturing once thrived, to the centers of large Asian populations in dire poverty, the immobility of labor is clear. Neither American nor Asian workers without highly specialized technical skills, can follow the movement of investment capital to obtain jobs. That is the real face behind the mask of “free trade.”

Those corporate elites who the pundits of CNBC and Fox News tout as the “job creators,” are, in fact, American-job destroyers. The claim is routinely made that these wealthy CEOs create jobs through investment of their wealth. Well, they do create poverty jobs in Asia to replace middle-class jobs in the U.S. In the process they destroy American jobs. And now we have the TPP, the “Trans-Pacific Partnership,” or “NAFTA on steroids,” formed in secret and intended to wipe out national standards for labor and environmental protection, even further extending corporate rule and economic control over nations.

Through most of the industrial revolution and subsequent expansion of economic production, investment of capital has been directed toward labor saving technologies of production as well as the invention of new products. The first coal-fired steam-driven textile factories in England and Scotland required many workers to maintain the machinery which did absorb some of the farmers driven off their land by the “enclosures” which were part of the first stage of industrialized agriculture. Most of the rest were encouraged to emigrate to Australia, the U.S., or Canada, where expansion into native lands provided new opportunities for workers displaced by the new industrial technology.

The industrial age has been characterized by continued economic growth. That growth absorbed most of the labor lost to automation of industrial processes. We are now at the end of that phase of the growth economy. Despite denials from the industrial and financial elites, the age of economic growth is ending. Converging crises of finance, resource depletion, accelerated climate disruption with increasingly costly expansion of fossil-fuel production, under-funded over-consumption sustained only by increased debt, and even greater over-production, make it inevitable.

Classical economics, the propaganda tool of industrial capital, sustains the illusion of endless growth. But it fails to recognize environmental reality. A new economics that faces ecological limits must assume curtailed fossil-fueled production and reliance on human labor for two reasons. First, no economy works without circulating its money. Wages are necessary for workers to purchase goods and services produced by other workers. Second, an adequately rapid withdrawal from fossil-fuel addiction will require converting many processes from capital-intensive to labor-intensive production. Some might yell “Luddite!” But existing science and technical knowledge will allow invention of many new labor-based methods and modification of old ones, avoiding the back-breaking pre-industrial forms of work. They just will not use so much fossil-fuel energy. Vast opportunities arise to invent new technologies that rely on human energy. Don’t forget the venerable bicycle. It remains the most energy-efficient mode of transportation yet devised.