General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMass unemployment is a failure of capitalism
Published 1 min ago on May 8, 2020
By Richard Wolff, Independent Media Institute- Commentary
The difficulties caused to workers by record unemployment during the pandemic are a product of capitalism. Most of the time, employers decide to hire or fire workers depending on which choice maximizes employers profits. Profit, not the full employment of workers nor of means of production, is the bottom line of capitalism and thus of capitalists. That is how the system works. Capitalists are rewarded when their profits are high and punished when they are not. Its nothing personal; its just business.
Unemployment is a choice mostly made by employers. In many cases of unemployment, employers had the option not to fire employees. They could have kept all employed but reduced their hours or days or else rotated off-work times among employees. Employers can choose to retain idled employees on payrolls and suffer losses they hope will be temporary.
However, unemployment is received almost everywhere and by almost all as a negative, unwanted experience. Workers want jobs. Employers want employees producing profitable output. Governments want the tax revenues that flow from employees and employers actively collaborating.
So why has the capitalist system periodically produced economic downturns wherever it has settled across the last three centuries? They have happened, on average, every four to seven years. The United States has had three crashes so far this century: dot-com in 2000; sub-prime mortgage in 2008; and now coronavirus in 2020. Thus the United States conforms to capitalisms norm. Capitalists do not want unemployment, but they regularly generate it. It is a basic contradiction of their system.
https://www.rawstory.com/2020/05/mass-unemployment-is-a-failure-of-capitalism/
rampartc
(5,398 posts)note that stock in a corporation always rises when layoffs are announced.
more unemployment = cheaper labor
appalachiablue
(41,113 posts)the inability to devise and implement a safer and fairer economic system that benefits society is the fault of humans.
Keynesian economics worked, lose the hyper 'free market' libertarian ideology that's reigned for 40 years.
Observe the mess.
Dandelyon
(21 posts)Isn't capitalist.
Rich means both USA and Venezuela simply need good presidents.