Re: free trade and wages
Jim O'Connor invites us to think about the extent to which quality improvement are built into capitalist competition. In longer historical context it appears that competition has favoured those producing inferior goods. The Dutch out smarted the Italians by producting cheaper garments. The British did the same to the Dutch. This is an interesting question therefore. Some thoughts: First, I am not entirely sure that quality is indeed, improving. British companies, for instance, seemed to have achieved a certain `competitiv advantage' vis-a-vis their European counterparts. The Economist say that 17 out of the 20 largest European food processing companies are British. (Or was it the European? I am not sure). In any case, is it because British food is superior to French or Italian? I doubt it. It is probably because the British are content to consume processes food in great quantities believing them to be `great value'. Second, and possibly in direct contradiction to my first point. During the 1980s, German, French, Japanese and North Italian companies concentrated on quality products not because they wanted to, but because strong labor movements resulting in relatively progressive social laws forced them to compete on something other than price. It now seems to me that they were simply lucky: Anglo-American style of growth generated growing income polarization and hence hefty demand for `luxury' goods. The point is that when peasants and the working classes were brought into the market, competition was on price. Now, with growing polarization and as market size is diminishing in relative terms, i.e., smaller percentage of the population count as effective consumers, competition is driven to `quality'. So I suppose the object of competition is an exogenous factor. Ronen Palan Newcastle Upon-Tyne, UK [EMAIL PROTECTED]
Re: free trade and wages
Jim O'Connor invites us to think about the extent to which quality improvement are built into capitalist competition. In longer historical context it appears that competition has favoured those producing inferior goods. The Dutch out smarted the Italians by producting cheaper garments. The British did the same to the Dutch. This is an interesting question therefore. Some thoughts: First, I am not entirely sure that quality is indeed, improving. British companies, for instance, seemed to have achieved a certain `competitiv advantage' vis-a-vis their European counterparts. The Economist say that 17 out of the 20 largest European food processing companies are British. (Or was it the European? I am not sure). In any case, is it because British food is superior to French or Italian? I doubt it. It is probably because the British are content to consume processes food in great quantities believing them to be `great value'. Second, and possibly in direct contradiction to my first point. During the 1980s, German, French, Japanese and North Italian companies concentrated on quality products not because they wanted to, but because strong labor movements resulting in relatively progressive social laws forced them to compete on something other than price. It now seems to me that they were simply lucky: Anglo-American style of growth generated growing income polarization and hence hefty demand for `luxury' goods. The point is that when peasants and the working classes were brought into the market, competition was on price. Now, with growing polarization and as market size is diminishing in relative terms, i.e., smaller percentage of the population count as effective consumers, competition is driven to `quality'. So I suppose the object of competition is an exogenous factor. Ronen Palan Newcastle Upon-Tyne, UK [EMAIL PROTECTED]
nike on free trade and wages
Some of you may recall the discussion about the wages paid to the Indonesian women who make the Nikes. They get a few cents,but the price of the shoes (or Shaquil, sp?) does not fall accordingly. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 916-898-6141 messages E-Mail [EMAIL PROTECTED]
nike on free trade and wages
Some of you may recall the discussion about the wages paid to the Indonesian women who make the Nikes. They get a few cents,but the price of the shoes (or Shaquil, sp?) does not fall accordingly. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 916-898-6141 messages E-Mail [EMAIL PROTECTED]
free trade and wages
I think what's happening is right out of the pages of Das Capital. Low wages/high productivity in industries producing internationally-traded goods lowers the value content of the average consumption basket, cet. par. increasing relative surplus value world-wide. High productivity sectors are based on high tech equipment. When high tech equipment is installed, labor is intensified, increasing absolute surplus value in particular firms (not necessarily the system as a whole). In today's crisis, labor is intensified both in the production and utilization of high tech equipment and services. Japan pioneered this after the 1973-1974 oil shock and shift to high tech. Marx didn't have the other side: to win on the world market, you have to have high Q/P products (quality/price). The intensification of labor is thus linked to quality as well as productivity, in ways that are a mystery to me. Anyone have an idea about this that they'd care to respond with? Jim O'Connor
free trade and wages
I think what's happening is right out of the pages of Das Capital. Low wages/high productivity in industries producing internationally-traded goods lowers the value content of the average consumption basket, cet. par. increasing relative surplus value world-wide. High productivity sectors are based on high tech equipment. When high tech equipment is installed, labor is intensified, increasing absolute surplus value in particular firms (not necessarily the system as a whole). In today's crisis, labor is intensified both in the production and utilization of high tech equipment and services. Japan pioneered this after the 1973-1974 oil shock and shift to high tech. Marx didn't have the other side: to win on the world market, you have to have high Q/P products (quality/price). The intensification of labor is thus linked to quality as well as productivity, in ways that are a mystery to me. Anyone have an idea about this that they'd care to respond with? Jim O'Connor
Re: Free trade and wages
Doug wants to if pay and productivity wage is sustainable. I think it is, as long as there is abundant labor--articulation of the modes of production a la Rey if you will. South Korea of course is increasingly facing a labor shortage, relatively speaking hence there is pressure on the part of SK capital to automate, diversify, and seek low wage sites--a practice already well honed by the Japanese. At the same time the weakening of the authoritarian regime and increasing labor militancy has created the basis for higher wages. Class war is very much alive and well. In India, on the other hand, availability of raw labor (often under semi-feudal conditions) combined with state subsidized education creates the possibility of low wages and high productivity. Urban wages continue to outstrip rural wages, while sector-specific manufacturing such as software command high wages. But given the liberalization trends, and increasing cross-border flows, such high wages turn out to be about a tenth of what a US software engineer might get with the same if not less educational qualifications. What is interesting in all of this is that US firms are increasingly entering the software market in India, using often US mainframes which are available in India when it is night-time in the US! The porosity of the working day (flexible systems) is quite apparent. Furthermore, while Japanese firms are largely absent, Singapore is planning to set up an software industrial park in India. I am only relying on nespaper reports but these are certainly interesting developments in the larger scheme of capitalist expansion. Anthony PS: Doug send me your snail-mail address and a sample copy of LBO.
Re: Free trade and wages
Doug wants to if pay and productivity wage is sustainable. I think it is, as long as there is abundant labor--articulation of the modes of production a la Rey if you will. South Korea of course is increasingly facing a labor shortage, relatively speaking hence there is pressure on the part of SK capital to automate, diversify, and seek low wage sites--a practice already well honed by the Japanese. At the same time the weakening of the authoritarian regime and increasing labor militancy has created the basis for higher wages. Class war is very much alive and well. In India, on the other hand, availability of raw labor (often under semi-feudal conditions) combined with state subsidized education creates the possibility of low wages and high productivity. Urban wages continue to outstrip rural wages, while sector-specific manufacturing such as software command high wages. But given the liberalization trends, and increasing cross-border flows, such high wages turn out to be about a tenth of what a US software engineer might get with the same if not less educational qualifications. What is interesting in all of this is that US firms are increasingly entering the software market in India, using often US mainframes which are available in India when it is night-time in the US! The porosity of the working day (flexible systems) is quite apparent. Furthermore, while Japanese firms are largely absent, Singapore is planning to set up an software industrial park in India. I am only relying on nespaper reports but these are certainly interesting developments in the larger scheme of capitalist expansion. Anthony PS: Doug send me your snail-mail address and a sample copy of LBO.
Re: Free trade and wages
Is this vast wedge between pay & productivity sustainable? Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) PS: I'd like to hear more about your work on SK steel. On Wed, 26 Jan 1994, Anthony D'Costa wrote: > Low wages is a challenge, no doubt, especially when combined with high > productivity. Harley Shaiken's study on the maquiladoras (1990) and my > own study of the South Korean steel industry indicate. Increasingly I > see the possibility of other products, software for example, to be driven > by low wages and high productivity. India is a case in point. The > difference with the past low wage driven "new international > division of labor" by MNCs is that such low wage labor is not raw labor. > Rather it is quite educated and skilled. In other words, capitalist > expansion is taking place based on both absolute and relative surplus > value. > > Anthony D'Costa > U of Washington, Tacoma > On Wed, 26 Jan 1994, D Shniad wrote: > > > On the issue raised a while back by Nathan Newman, quoting > > the Economist to the effect that free trade has had little > > effect on wages, I would strongly recommend Walter Russell > > Mead's "The Low-Wage Challenge to Global Growth" by way of > > rebuttal. > > > > It's published by the Economic Policy Institute in > > Washington, D.C. > > > > ISBN # 0-044826-21-0 > > > > Sid Shniad > > > > Sid Shniad > > > >
Re: Free trade and wages
Is this vast wedge between pay & productivity sustainable? Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) PS: I'd like to hear more about your work on SK steel. On Wed, 26 Jan 1994, Anthony D'Costa wrote: > Low wages is a challenge, no doubt, especially when combined with high > productivity. Harley Shaiken's study on the maquiladoras (1990) and my > own study of the South Korean steel industry indicate. Increasingly I > see the possibility of other products, software for example, to be driven > by low wages and high productivity. India is a case in point. The > difference with the past low wage driven "new international > division of labor" by MNCs is that such low wage labor is not raw labor. > Rather it is quite educated and skilled. In other words, capitalist > expansion is taking place based on both absolute and relative surplus > value. > > Anthony D'Costa > U of Washington, Tacoma > On Wed, 26 Jan 1994, D Shniad wrote: > > > On the issue raised a while back by Nathan Newman, quoting > > the Economist to the effect that free trade has had little > > effect on wages, I would strongly recommend Walter Russell > > Mead's "The Low-Wage Challenge to Global Growth" by way of > > rebuttal. > > > > It's published by the Economic Policy Institute in > > Washington, D.C. > > > > ISBN # 0-044826-21-0 > > > > Sid Shniad > > > > Sid Shniad > > > >
Re: Free trade and wages
Low wages is a challenge, no doubt, especially when combined with high productivity. Harley Shaiken's study on the maquiladoras (1990) and my own study of the South Korean steel industry indicate. Increasingly I see the possibility of other products, software for example, to be driven by low wages and high productivity. India is a case in point. The difference with the past low wage driven "new international division of labor" by MNCs is that such low wage labor is not raw labor. Rather it is quite educated and skilled. In other words, capitalist expansion is taking place based on both absolute and relative surplus value. Anthony D'Costa U of Washington, Tacoma On Wed, 26 Jan 1994, D Shniad wrote: > On the issue raised a while back by Nathan Newman, quoting > the Economist to the effect that free trade has had little > effect on wages, I would strongly recommend Walter Russell > Mead's "The Low-Wage Challenge to Global Growth" by way of > rebuttal. > > It's published by the Economic Policy Institute in > Washington, D.C. > > ISBN # 0-044826-21-0 > > Sid Shniad > > Sid Shniad > >
Re: Free trade and wages
Low wages is a challenge, no doubt, especially when combined with high productivity. Harley Shaiken's study on the maquiladoras (1990) and my own study of the South Korean steel industry indicate. Increasingly I see the possibility of other products, software for example, to be driven by low wages and high productivity. India is a case in point. The difference with the past low wage driven "new international division of labor" by MNCs is that such low wage labor is not raw labor. Rather it is quite educated and skilled. In other words, capitalist expansion is taking place based on both absolute and relative surplus value. Anthony D'Costa U of Washington, Tacoma On Wed, 26 Jan 1994, D Shniad wrote: > On the issue raised a while back by Nathan Newman, quoting > the Economist to the effect that free trade has had little > effect on wages, I would strongly recommend Walter Russell > Mead's "The Low-Wage Challenge to Global Growth" by way of > rebuttal. > > It's published by the Economic Policy Institute in > Washington, D.C. > > ISBN # 0-044826-21-0 > > Sid Shniad > > Sid Shniad > >
Free trade and wages
On the issue raised a while back by Nathan Newman, quoting the Economist to the effect that free trade has had little effect on wages, I would strongly recommend Walter Russell Mead's "The Low-Wage Challenge to Global Growth" by way of rebuttal. It's published by the Economic Policy Institute in Washington, D.C. ISBN # 0-044826-21-0 Sid Shniad Sid Shniad
Free trade and wages
On the issue raised a while back by Nathan Newman, quoting the Economist to the effect that free trade has had little effect on wages, I would strongly recommend Walter Russell Mead's "The Low-Wage Challenge to Global Growth" by way of rebuttal. It's published by the Economic Policy Institute in Washington, D.C. ISBN # 0-044826-21-0 Sid Shniad Sid Shniad
