It is because of the Tendency of the Rate of Profit to Fall and was predicted as far back as 1880. Now we’re seeing it in reality. The surprising thing isn’t that this is happening, but that it took so long to happen.
Corporate profits are higher than ever largely because corporations have been able to get greater productivity out of workers without increasing pay. If wages had kept up with productivity, profits wouldn’t be nearly as high.
Edit: the reason this is a mystery to so many mainstream economists is because they don’t want to reconcile with one simple fact: in order for profits to keep going up, worker wages must be suppressed while also increasing productivity. Why do you think so many billions of dollars are being spent on AI development? Many see it as the key to ever increasing profits, because the worker, and their pesky demand for adequate compensation can be removed entirely.
Corporate profits are higher than ever largely because corporations have been able to get greater productivity out of workers without increasing pay. If wages had kept up with productivity, profits wouldn’t be nearly as high.
the reason this is a mystery to so many mainstream economists is because they don’t want to reconcile with one simple fact: in order for profits to keep going up, worker wages must be suppressed while also increasing productivity.
That, and they don’t want to/are psychologically incapable of the self-awareness required to admit their own complicity in the increasing oppression and exploitation of the very people without whom everything falls apart.
Why do you think so many billions of dollars are being spent on AI development? Many see it as the key to ever increasing profits, because the worker, and their pesky demand for adequate compensation can be removed entirely.
It is because of the Tendency of the Rate of Profit to Fall and was predicted as far back as 1880. Now we’re seeing it in reality. The surprising thing isn’t that this is happening, but that it took so long to happen.
Except corporate profits are higher than they’ve ever been. Only thing falling is the workers’ share of the obscene dragons hoards of riches.
Corporate profits are higher than ever largely because corporations have been able to get greater productivity out of workers without increasing pay. If wages had kept up with productivity, profits wouldn’t be nearly as high.
Edit: the reason this is a mystery to so many mainstream economists is because they don’t want to reconcile with one simple fact: in order for profits to keep going up, worker wages must be suppressed while also increasing productivity. Why do you think so many billions of dollars are being spent on AI development? Many see it as the key to ever increasing profits, because the worker, and their pesky demand for adequate compensation can be removed entirely.
That, and they don’t want to/are psychologically incapable of the self-awareness required to admit their own complicity in the increasing oppression and exploitation of the very people without whom everything falls apart.
Spot on again.
Anyone working in these environments knows the inevitable is coming.