Atlas Flinched

[Carl Remick]

>Carl Remick wrote:
>
>>Isn't the larger point that big money has boxed itself in and has no
>>good alternatives at this point?  U.S. capitalists have lived in a
>>dream world from Reagan through Clinton and now face the curse of
>>answered prayers.  They wanted to recreate the laisser-faire
>>paradise of a century ago and were remarkably successful, virtually
>>guaranteeing a resurgence of the manic-depressive, boom-bust
>>intensity of classic capitalism, guaranteeing agony and waste all
>>around.
>
>Yes, but... Sustained low unemployment has been good for the U.S.
>working class, producing the first sustained real wage gains since
>1973. So what ensues is likely to be bad for the w.c., and that's
>something we should care about, no?
>
>Doug

No question.  And no question there's plenty to be concerned about, e.g., 
this from today's Wall Street Journal article, "Decline in Corporate Profits 
Is Expected":

"Some economists now fear that declining corporate profits could spark a 
sharp drop-off in employment, consumer spending and business investments.  
Because technology has given many businesses faster knowledge of sales and 
earnings trends, economists say the decisions to cut back in this downturn 
could be swifter than normal.  'That's what the New Economy is all about -- 
quicker adjustments,' says Neal Soss, chief economist at Credit Suisse First 
Boston in New York.  'Business knows its circumstances closer to real time 
than ever before.'...  A sharp fall in jobs could mean a faster-than-usual 
decline in consumption, which has been the main engine for the economy 
during the expansion.  'You may not get the buffer of wage income and 
consumption that you used to get in the early stages of a slowdown,' Mr. 
Soss says."

Carl

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