Japan syndrome

[Max Sawicky]

...The real gains that inflation yields to capital are thus
only another form of the devaluation of labor power, which happens in
every crisis. What used to be accomplished by deflationary means is now
effected by inflationary means, not by lowering wages but by raising
prices--or by a combination of both. . . .

This is way too simple and is contradicted, though not
refuted, by simple responses.  First, if the real wage reduction
is associated with an employment increase, there is a
gain to the working class that offsets the loss to
some extent, possibly great.  Second, as employment
increases, there is upward pressure on real wages that
offsets the initial push.  Third, if there is slack
in the economy and prices are sticky, the effect of
an increase in aggregate demand could augment
employment by increasing both supply and demand for
labor.

mbs