Will never survive if they created more jobs

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will never survive if they created more jobs, protected the environment, or to get the economy moving again. (Sad truth) This leads to layoffs and deepened recession Problem of inflation: 4 essentials food fuel housing healthcare Main point: it hurts the workers more than the families Other causes of inflation include military expenditures and welfare Buying Power > Human Need → all that matters is business productivity and it is measured quantitatively and decreases the quality of life Unemployment is increasing and is becoming more permanent Raise profitability by downsizing (layoffs), speedups (make diminished groups work harder), and part-time and contract labor (hiring people with no benefits, seniority, or steady employment) HARDSHIPS Laziness does not keep people in poverty, it is the low wages they are paid and the high rent and taxes they must pay others U.S. has highest infant death rate and highest rate of youth deaths of twenty major industrial countries Hits people of color hardest and women. (children even sought out because they will get paid less and taken advantage of) Increased hunger, illnesses, illiteracy, homelessness. illegal drug use, elderly in poverty, suicide rates, family violence and abuse Chapter 9 The Global Collapse: The Non-Orthodox View by Walden Bello DEFINING Clearly the orthodox economics is negatively impacting America because we have run into the problem of overproduction aka overaccumulation or overcapacity overaccumulation: tendency of capitalism to build up tremendous productive capacity that outruns the population’s capacity to consume owing to income inequalities that limit popular purchasing power Caused by the Golden Age of Contemporary Capitalism (1945-75) which was the massive reconstruction of Europe and East Asia after WW2 (I am not sure if this is important…) 3 ESCAPE ROUTES 1: Neoliberal Restructuring: remove state constraints on growth, use, and flow of the capital and wealth then redistribute income from the poor and middle classes to the rich on the throwy that the rich would be motivated to invest and reignite economic growth Problem? you can’t simply force the classes to trust the rich 2: Globalization: gain access to cheap labor by gaining new albeit limited markets and by gaining new areas for investment in infrastructure Think U.S. relationship to China
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Problem? overproduction adds to productive capacity… depressing the prices and profits 3: Financialization: financial sector turns in on itself by circulating large amounts of surplus funds and reinvesting it in the capital sector Problem? has to try to squeeze out value of already created value…. new value will never be generated SUBPRIME IMPLOSION The Real Estate Bubble: caused by big ticket mortgages getting sold aggressively with low interest rates that would later be jacked up making all the homeowners turn to loans that they could not afford.
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