The question that should be asked is where is Henry Ford when we need him and economies need saving. Henry Ford was a ruthless industrialist who nonetheless refused to be hobbled by suicidal ideology when it came to doing business. He came to realize that as his workers cranked thousands of new cars off the assembly line, none of those workers would likely ever own one, because he didn’t pay them enough. So with that he dramatically increased their wages.
It was such a good idea that most industrialists followed suit and his practical approach was dubbed Fordism. It was the foundation of a high-wage economy, and it lasted for a very long time and it produced incredible real wealth for decades.
This was so until neoliberalism decided to kill the goose that laid the golden eggs. The new set of goals and assumptions of neoliberalism mandated that workers’ wages and salaries had to be constantly driven down in a new global system of competition for high spare prices. Not a competition to achieve growing companies, or economic stability, or balanced growth, or even profits, but just share prices.
Now the vast majority of working people in Canada and elsewhere are up to their eyeballs in debt, hundreds of thousands have no jobs, families are hunkering down in survival mode and not buying much of anything beyond food and clothing, and everyone is waiting for the inevitable bursting of the housing bubble which is the only think keeping the rusting, rudderless hulk afloat.
The faux “financial economy,” where nothing needs to be reduced, has devastated the real economy, but the same policies are still being pursued: oppose wage increases, eliminate or down-size pensions, lay off workers in enhance. This defines insanity: doing the same thing over and over again and expecting different results.
All in all were working people once had a option of quitting a bad employer that option has now all but disappeared, It’s an employer free-for-all in denying workers’ rights and no one realizes that a cheap labor economy ultimately means a low consumption economy. So instead of decreasing the wages of workers and created more debt economies should follow in Henry Ford’s footsteps in creating a more reliable situation for the working class instead of expecting failure.
Title: The Beginning of the End? It Looks like Capitalism is Finally Preparing to Bury Itself
Source: The CCPA Monitor
Author: Murray Dobbin
Student Researcher: Leta Frolli, Sonoma State University
Faculty Evaluator: Sheila Katz, Sonoma State University