low wage capitalism
TRANSCRIPT
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Low-Wage
CapitalismColossus with feet of clay:
What the new globalized, high-tech imperialism
means for the class struggle in the U.S.
Fred Goldstein
World View Forum
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Goldstein, Fred.
Low-wage capitalism
Colossus with eet o clay:
What the new globalized, high-tech imperialism
means for the class struggle in the U.S.
Fred Goldstein. 1st ed. p. cm.Includes index and bibliography.
ISBN-13: 978-0-89567-151-6
ISBN-10: 0-89567-151-6 (paperback : alk. paper)
1. Globalization Economic aspects.
2. Inormation technology Economic aspects United States.
3. Employment Eect o technological innovations on.
4. Contracting out.
5. Working class United States.
6. Marxian economics.
HC 59 F67 2008
338 2008929963
Copyright 2008
Ideas in this book may be reely disseminated.
Any properly attributed selection or part o a chapter within
the air use guidelines may be used without permission.
World View Forum
55 W. 17th St., 5th Floor
New York, NY 10011
Available at discounted bulk rates for educational useTo place credit card orders or bookstore and university
invoice orders and discounts, contact: Leftbooks.com
Book fonts: Minion, Fenice and Myriad
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Low-Wage Capitalism ,
C O. H ,
.
I ,
. D .
Bertell Ollman, author and Professor of Political Teory,
New York University
I , F GLow-Wage Capitalism
. B ,
,
.
E
,
. E M , G
, . U .
Gregory Elich, author oStrange Liberators
F F U S, F P, 4
,
. O
.
Berna Ellorin, Secretary-General, BAYAN USA
160 Communist Manifesto, F G
M
21 . N - ,
-
.
Abayomi Azikiwe,Editor Pan-Arican News Wire
and Contributing Editor or Workers World
T
U.S.
L A ,
U.S. . T
.
Ignacio Meneses, Co-chair, U.S.-Cuba Labor Exchange
High praise forLow-Wage Capitalism
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About the author
F G M Workers World. Low-Wage Capitalism
P R G S S-
, N Y C M 2006 W W P.
, C F C,
I C S B M 2007 -
IV I C W KM C 21 C, H, C M 2008.
H S, L
A S, I.
P :
, , , ,
.Low-Wage Capitalism
- .
Martha Grevatt,founding board member (1994) andnational executive ofcer (1996-2001), Pride At Work, AFL-CIO,
Executive Board member UAW Local 122
W . I
, . B,
, !
David Sole, President, UAW Local 2334, Detroit, Michigan
Low-Wage Capitalism F G ,
.
Clarence Thomas, Executive Board ILWU Local 10
and Co-chair o the Million Worker March Movement
L, , ,
G
. Michael Parenti, author o Contrary Notions
W , , ,
M .
F G .
Howard Zinn, author oA Peoples History of the United States
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About this book T
A note on the current capitalist crisis and low wages
Postscript: the crisis within the crisis
Section 1:
Imperialist globalization and worldwide wage competition1 Doubling the global workorce 3
P 74 10
T 11
C 13
M 15
2 New global networks o exploitation 19D: C
? 19, 22
H-P 22
I B M 23
L C 23
U.S. 24
B 25
M 25
3 Supply chains: vassals o the lords o capitalism 27F, 28
S 30
B 31
C 32
C - 33
P- -: 36
F 37
4 Oshoring: millions o service jobs at risk 39O 40
W- E J 44
B 45
Table of Contents
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5 Marxism and globalization 49L - 51
T 53
T 54
M 55L 56
I 57
A 58
I U.S. 60
A- - 62
S - 65
G 67
Section 2:
Three decades of getting poorer
6 Where high tech is leading 75H 77
R 79
C 82
D 83
T 8630 87
A 89
T 91
L U.S. 93
H 95
M , 98
F - 100
7 Globalization and low pay 10544 - 2006 107
D 108
M 111
M - - 115
C , 119
D 121
A , 123W W-M 127
8 Sexism, racism, and low wages 133W 133
T C 134
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N - 136
A A 137
R - 143
9 Globalization and immigration 149
L 149S 150
M D 2006 U S 151
L/ - 153
V - U.S. 154
NAFA M 156
R 159
10 Late 1970s: Attack on unions begins 161T 161
L , R PACO 164
PACO 166
G 167
Section 3:
Lessons from the past for the future struggle
11 Decades o rank-and-le ght-back 173
S D 174S : - -? 192
12 Reviving the struggle 195 195
L 199
S -- 201
F 209
R-- 210
13 High tech undermines old orms o class organization 213L 214
A 215
R 216
B - 217
T 218
M , 219
14 Building a broad working-class movement 221T 223
U.S. : - 223
K - 226
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W LGB 229
U 232
N 234
M 237
T M W M M 241F , 245
F , - 246
15 Class struggle and capitalist legality 249-H, -- : 249
H R W U.S. 252
Uq 254
L 256P 258
16 Class consciousness and class struggle 261C - 263
UAW 2007 266
B 269
G 273
T 276
N 277S 278
Aferword: Imperialist war in the 21st century 281T 281
R C B 283
C 285
P, 287
E 288
Acknowledgments 289
Bibliography 291
Endnotes 297
Index 303
Tables and charts
Employment growth 61 months ater peak 68
Manuacturing increases & employment decreases99Additional hours worked per two-earner amily per year 116
The sel-suciency standard or Philadelphia in 2004 124
Efects o anti-labor ofensive & restructuring on Arican-American workers 139
Jobs o undocumented workers 155
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About this book
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A note on the current capitalistcrisis and low wages
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Section 1
Imperialist
globalizationand worldwide
wage competition
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Doubling the global workforce 3
1
Doubling the global workforce
Political expansion after 74 years of contraction The new international division of labor
Corporate design for worldwide wage competition Marx on wages and competition
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4 Low-wage capitalism
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corporations increased
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Doubling the global workforce 5
ILO
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6 Low-wage capitalism
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Doubling the global workforce 7
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8 Low-wage capitalism
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Doubling the global workforce 9
ties, no longer holds, as an increasing share o world manuacturing
capacity is now ound in emerging markets.16 [E .]
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10 Low-wage capitalism
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Doubling the global workforce 11
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12 Low-wage capitalism
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Doubling the global workforce 13
Corporate design or worldwide wage competition
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14 Low-wage capitalism
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Doubling the global workforce 15
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16 Low-wage capitalism
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based upon national conditions.
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Doubling the global workforce 17
-
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, increasingly
determined internationally and under the down-
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The globalization
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New global networks of exploitation 19
2
New global networks of exploitation
Dell: Collaboration of individuals or global regimentation of workers? Toyota, the pioneerHewlett-Packard IBM Liz Claiborne U.S. auto companies Boeing Making stuff cheap
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20 Low-wage capitalism
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New global networks of exploitation 21
. UPS B,
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22 Low-wage capitalism
Toyota, the pioneer
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New global networks of exploitation 23
$50- . I
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24 Low-wage capitalism
. G, C-
, 250 -
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New global networks of exploitation 25
U.S. 32,000 7,000,
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26 Low-wage capitalism
, , CEO ( ).
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Supply chains: vassals of the lords of capitalism 27
Supply chains: vassals ofthe lords of capitalism
Flextronics, the lead vassal Solectron Boeing and reverse auctions Cisco
sheds factories Contracting out for super-profits Price-setters and price-takers:
workers are on the bottom Fears of the overseers and secrecy of the monopolies
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28 Low-wage capitalism
I , , - -
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Supply chains: vassals of the lords of capitalism 29
X ($1 ), S E ($2
). I 2004 N F ,
q ($2 ).49
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, 90 . F M
$1 .50
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30 Low-wage capitalism
F laid o -, .., ,
increased -
.54
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F.55
Solectron
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Supply chains: vassals of the lords of capitalism 31
Q, , D 2004
PC . I
$10 . I , B,
D, B, C, G, N
Q, H H, S, F, FB, P C. ,
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32 Low-wage capitalism
.61 B
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Supply chains: vassals of the lords of capitalism 33
$900 $1.3 .64
W 2001, C -
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34 Low-wage capitalism
W C - , . F , -
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Supply chains: vassals of the lords of capitalism 35
-
. I -
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- cost price plus ,
, market price minus . 72
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I , , - . Priceline.com, , - . A . On a big scale/ ,
G E, F, C - . F ,FreeMarkets Online - q - . A 15-40%. - ( ) - .73 [E .]
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Subcontractors
are like foremenrounding up
the workers
of the world on
behalf of the
big monopolies
-
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36 Low-wage capitalism
I , -
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Price-setters and price-takers: workers are on the bottom
S -
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Supply chains: vassals of the lords of capitalism 37
, , ., .
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38 Low-wage capitalism
, -
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Offshoring: millions of service jobs at risk 39
Offshoring: millionsof service jobs at risk
Offshoring fever rises in boardrooms White-collar outsourcing
by Europe and Japan Blinder comes up with miserly solutions
A B, P B C C E-
A B G F
R S,
P, Wall Street Journal M
2007 30 40
U.S. .81 H -
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eign Affairs O: N IR?82 B -
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40 Low-wage capitalism
,
- Wall Street Journal -
B . D
[ FG]
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, .83
B, , -
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/ .
Oshoring ever rises in the boardrooms
B D, S, W E F J-
2004, M . A
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, q 50 60 .
.84
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Offshoring: millions of service jobs at risk 41
. B HSBC S I.
C I; F M;
G S - INA-
S R, B, E E.86
A , N - A --
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.87 F
$10 I $60
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By 2004 some 10,000
Filipinos, almost all
with college degrees,
were staffing forty-five call centers for
the transnationals
-
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42 Low-wage capitalism
--
S A. F ,
$3,000 , W U.S. B -
$90,000. I M ,
F, 15 .88
I 520,000 I (I) 2004; -
$5,000. I 260,000 . A
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Offshoring: millions of service jobs at risk 43
G P & G, DP, C S, ABN AMRO,
U, M
. P & G, $57- ,
I ,
C M. DP 60,000 C,
- .91
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N D 2007 38,500 I.
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44 Low-wage capitalism
-
.94
White-collar outsourcing by Europe and Japan
. A, $19.7 2007,
- P,
C R. A 180,000 150
49 - F 500
E .95 I - E-
E , F R
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, W.96
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Offshoring: millions of service jobs at risk 45
J .
- ,
D, C,
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J B A E- : , F.97 K
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C .
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Blinder comes up with miserly solutions
A -
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46 Low-wage capitalism
H
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Offshoring: millions of service jobs at risk 47
. A
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48 Low-wage capitalism
B B
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Capitalism spurs thecreativity of the few to
increase the hardship
of the many
-
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Marxism and globalization 49
Marxism and globalization
Lenin on 20th-century imperialism The dual character of imperialism Three factors behind
new globalization Marx on technology and international division of labor Lenin
on the previous imperialist division of labor International solidarity and globalizationAn irony that helped the globalizing exploiters Impact on U.S. workers of defeat of
socialist bloc Anti-communist crusade showed ruling-class fear Socialist camp set
standard for working-class security Global expansion cant dispel crisis of overproduction
, , . C , ,
. C , , ....
. I , , .
Karl Marx,The Communist Manifesto
T q K M
. I -
- q -
M. I -
160 , Manifesto .
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50 Low-wage capitalism
-
, -
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M -
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P , M q Manifesto -
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-
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-
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Marxism and globalization 53
,
, , , , , .,
, , , , , , . A -
.
W -
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.
The dual character o imperialism
L M , - , - -
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.104
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7/31/2019 Low Wage Capitalism
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54 Low-wage capitalism
, -
.
L , ,
.105
O, L 1920 F G
, super-proits ( -
q -
) possible to bribe
. A
; , , . 106 [E .]
Three actors behind new globalization
I - , ,
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Marxism and globalization 55
, - -
, , , ,
,
, a new division o
labor in the world, M , - .
, .
- ( -
) - ,
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Marx on technology and the international division o labor
M , ..,
,
.
S , , , , , , , ; , , ; , , q , q , . O , , , . O , , q . B , . I E I , , , , G B. A , q
The process
of imperialist
super-exploitation
was freed from all
geographical limits
by the scientific-
technologicalrevolution
-
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56 Low-wage capitalism
, converts one part othe globe into a chiely agricultural ield o production or supplying theother part, which remains a chiely industrial ield. 107 [E .]
, , , -
, ., -
. U , ,
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Lenin on the previous imperialist division o labor
I 1916 L . U 1970, L -
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Marxism and globalization 57
, ., N. I
A
U.S. .
L A U.S. -
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- , A
-
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58 Low-wage capitalism
. I -
- ,
, -
. -
,
,
. A
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S, -- ,
, , , , , P, H .
, U S
, -
-
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.
An irony that helped the globalizing exploiters
I ,
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.
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Marxism and globalization 59
F , B R R
, -
. I
S.
C R,
, -
C .
- C;
- -
. P C, USSR, G D R, C P R, ,
-
,
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,
.
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The present-day
advancement of
global capitalism
was made possibleby the previous
struggles of
oppressed peoples
for the right to
knowledge
-
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60 Low-wage capitalism
-
.
, -
.
I,
- ,
-
.
.N
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.
I ,
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I C, . -
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D U.S. USSR -
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Marxism and globalization 61
. J -S
q , -
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.
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1917 B R R
C W. I, W W I
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62 Low-wage capitalism
- USSR
. I ,
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.
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Anti-communist crusade showed ruling-class ear
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Marxism and globalization 63
. (O ,
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7/31/2019 Low Wage Capitalism
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64 Low-wage capitalism
,
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. B
.
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B USSR C, W
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Marxism and globalization 65
You had a different attitude
toward your employees
when you thought that
Communism was still out
there as an alternative
Socialist camp set standard or working-class security
-
U S
, USSR
.
P , -
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, -
.
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New York Times, The Disposable Amer-
ican US. I USSR
. I U.S. , U
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U, . O,
R F, H,
: Y
C .109
USSR, -
, -
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.
J F, The Global Class War,
R R :
I 1916 W W W I. H . ED, 1912, W . H .
1920, G D , ; - . F R
R 1917 B W 1989, the hearts and minds othe working class. G S U, . 110 [E .]
-
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66 Low-wage capitalism
W E
J, -
. N W G,
G D R E,
. W
G -
,
, , . G -
P. O USSR , G -
C W. N , , E G,
G, .
USSR -
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USSR, A S - .111
I USSR
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-
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Marxism and globalization 67
.
.
Global expansion cannot dispel crisis o overproduction
, USSR, -
, . -
, , -
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. (I
- USSR
U.S. .) B
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68 Low-wage capitalism
0%
5%
10%
15%
Current cycleMarch 2001
April 2006
Averageforpriorcycles
July1990Aug.1995
July1981Aug.1986
Nov.1973Dec.1978
April1960May1965
10.4%
13.8%
8.7%
7.1%
10%
1.9%
Employment growth61 months ater peak
Reprinted rom Lawrence Mishel, Jared Bernstein and Sylvia Allegretto, The State of Working America, 2006/2007.Copyright 2007 by Cornell University. Used by permission o the publisher, Cornell University Press.
Percentage o growth in employment created in each recovery 61 months (ive
years) ater the highest level o employment in the previous recovery period.For more than a quarter o a century U.S. capitalism has put ewer and ewer
workers to work with each recovery. [FG]
-
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Marxism and globalization 69
, ,
1929. W
,
.
, . -
,
W S C M S, B
S, M L, .
A G-
, F R S, -
- 2000. 2000 ,
, -
. B 2001 --
, ,
.
E -
. I 27 , , in the period o
expansion N 2001 M 2004, net losso 594,000 job. F ,
1940. A S R, M S,
2004 8 . I
61
M 2001. F, ,
- .112
I U.S. , 1991. A
. I ,
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70 Low-wage capitalism
. I ,
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B ,
.
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The housing boom was
insufficient to absorb
all the fictitious capital
created by the FederalReserve System
-
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Marxism and globalization 71
, , ,
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-
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Three decades
of getting poorer
Section 2
-
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-
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Where high tech is leading 75
Where high tech is leading
High tech and the military Role of technological offensive in weakening
unions Changed social composition of working class Declining rate of
profit and capitalist crisis The era of permanent layoffs 30 million lose theirjobs A ceaseless bloodletting The end of safe jobs Law of capitalistaccumulation applied to U.S. High tech and increased exploitation of labor
Manufacturing jobs down, manufacturing up From manufacturing jobs to
low-wage service jobs
T -
-. I
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, F.
A .
. B q
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1919. I
1937 - ,
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M 1913.
. I - -
6
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76 Low-wage capitalism
1937 F -
.
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USSR q
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I , - P-
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Where high tech is leading 77
High tech and the military
M - -
U.S. . P
. L
IBM, .
W S U 1957
S, , P
. E
U.S., -
. B . G
W
.A, P
I. O W W W G-
- E O N R (CERN) 1990,
U.S.
, USSR.
, -
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R P A (DARPA),
. I - , -
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, L , : -
-, -
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78 Low-wage capitalism
H,
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, - . -
,
,
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A -
, , ,
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U.S. .
M,
B . I 1981, -
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Where high tech is leading 79
, ,
;
U S .
Role o technological oensive in weakening unions
I -,
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, . I
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-, -
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,
.
Worldwide wage competition
makes the working class
feel great economic pressureeven during a capitalist
economic boom
-
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80 Low-wage capitalism
F,
, ,
. A
, -
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. U.S.
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Where high tech is leading 81
-
, - -
U S. -
-N D
, 1930 1950 1960.
S M, W W P,
High Tech, Low Pay: A Marxist Analysis
of the Changing Character of the Working Class, 1986,
-
U S.
I , -
-
. H - :
[ ] . F S WW . B , - , , .
L , . B . q q .113
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M
. B .
,
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-
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82 Low-wage capitalism
Changed social composition o the working class
M
- , . B
.I
, - , , B, L, A, , .114
- -,
, M,
,
115
Q -
, M :
W , , , , ( ) ....
... W , , . , .116
- , L , 1980 -
, ,
, -, . -
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CIO
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,
-
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Where high tech is leading 83
.
,
, .
B USSR -
U S
.
Declining rate o proit and capitalist crisis
M -
, -
q , - .
H
U S. H U.S.
.
M
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,
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. B
: .A M ,
. P . I , M
, , .W , . B . A , . O .117
. B
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84 Low-wage capitalism
,
.
. I ,
. -, ..,
. -
.
F M Capital, M ,
W , , . . I .
, . [ ] .
D , - . F , . E, , .
[FG] . I , q .
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.
G M . GM
. I
.
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-
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Where high tech is leading 85
- ,
GM
.
A M , -
. O , - .119
U S. M
. M -
- .
M ,
M
.
M
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86 Low-wage capitalism
.
The era o permanent layos
I 1970, -
.
- -
.
: - . D, , -
, . A
, U.S.
.
F ,
, -
- .
.
,
.N
. I
5,000 10,000
.
.
,
.
3,400 2007 C C, -
U S. I
600 - 40,000 , - C.
I A 2007 8
Over the past thirty
years layoffs have
become a way of life
for the vast majority
of workers and
business as usual
for the bosses
-
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Where high tech is leading 87
, . C
C B B, -
. ,
$10 $20 , . -
, , .120
, -
-
. I
. -
C 17,000
9,500 -. A F M
70,000 ; . O
,
U S .
30 million lose their jobs
L U, New York Times , -
* . I -
- The Downsizing of America
Times. N , The Disposable Ameri-
can: Layoffs and Their Consequences, ,
,
.
I A 2007 , , U
*
U S, E, L A,
. O , U.S.
, , ,
, .., . I E, LA, -,
, , .U.S. ,
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.
-
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88 Low-wage capitalism
. A A, 30
[- ] 1980,
B L S (BLS) ,
.121 q
30 .122
30 , U
B L S
. H - ,
.123
I The Disposable American, U . H
BLS 3.3
5.9 - 1981 2003. U -
. I
60,000 . O ,
. F -
. .
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10
, 2 3
.124
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U
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25 $9
[ 2004] - , , ,
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Where high tech is leading 89
: , . P
.126
A ceaseless bloodletting
C .
-- , -
, . I W W II,
-
U.S. . C -
. B 1970, -
.A ,
. C
, ,
.
C
.
q. S , - -
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I , ,
, q
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, to the same
jobs that they had been laid o rom, with the same pay and beneits
, q
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90 Low-wage capitalism
P , , -
. , -
, -
.
- , - .
U ,
- , , take
place during the boom period as well as the bust period. , -
1981, 1991, 2001
. -
, , . B ,
, .
F , 1973 1995,
,
600,000 180,000. U .
Y S & 1977 5,000
C, O, . U S S
1979, . S U.S. S q
Y, O,
.127
-
, ,
, - -
. ,
. - E J,
W W II. W S
U S -
.
-q ,
.
W R R J 1981, -
-
. H , P J C -
, , PACO. R
11,400 .
-
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Where high tech is leading 91
. J W G
E 1981 PACO . I ,
, W 72,000 .
RCA , ,
W 51,000 RCA 31,000 .128 (H N J, ,
.) 1980, U.S. -
.
- .
1990,
. A U,
1995, , ,
. ,
U. , ,
-
.129
The end o sae jobs
C -W W II , U.S. -
. - -
- q
.
A M High Tech, Low Pay 1986:
U.S.
S W W. A - . I
W
J.130
M