Collapse of the real economy banks held onto their

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COLLAPSE OF THE REAL ECONOMY Banks held onto their cash or buying up rivals to strengthen their financial base. Chapter 10: Class Struggle 101 by CHUCK O’CONNELL Subheading: How Capitalists accumulate the wealth: pay the workers less than the value of the wealth created by the workers HOW TO REDUCE WAGES TO ACQUIRE PROFITS 1. Don’t hire all the workers a. keeps the workers in competition, thus making them desperate and allows for lower wages b. reserve army of pool labor still available 2. Prevent the minimum wages from keeping pace with inflation a. inflation is the rise in the price of goods and services, so if the wage doesn’t match up they lose purchasing power 3. Transform career jobs into temporary ones a. lower the wages and benefits and weaken their political solidarity 4. Turn full-time jobs into part-time jobs a. reduce the number of hours in order to lower the wage and benefit scales 5. Fire the workers and then rehire them from a leasing agency ?? a. adds a buffer zone of management and reduces labor costs 6. Fire some workers, redistribute their work to the remaining workers and thus make the company more efficient a. production levels have been maintained with fewer workers which means lower costs for the firm. Same amount of goods produced by less people = more profit 7. Put workers on a salary and thus exempt them from rules requiring payment of overtime wages a. Provide “management” positions but not required to put in more than 40 hours. b. Lose overtime wage benefits 8. Layoff workers who have worked their way up the wage scale and offer to rehire them at the prevailing entry level wage a. Offer the jobs back while cutting health coverage and minimum wage 9. Create 2 tier workforce when negotiating a new contract with the labor union a. In the new contract, threaten workers with reduction of wages and benefits. This tactic forces them to settle for their current wages only if the new hires get lower wages and benefits for the same work. This increases exploitation between old and new workers 10. Move jobs into prisons a. State of California even offered businesses tax incentives if they moved work into prisons…. claiming that it will help them “rebuild their lives” b. This lessens the ability for workers to bargain for higher wages and better working conditions
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11. Move jobs overseas to regions of cheaper labor a. Think China, Philippines, Korea, Guatemala, Mexico…. etc 12. Transform welfare into “workfare” a. You must perform labor to receive welfare grants. Bosses do this to replace unionized public sector jobs with jobs that pay minimum and subminimum wages in order to undermine the wages and job security of other workers 13. Use home labor a. save firm costs and requires very little communication causing a greater sense of political isolation and impotence and inhibits them to get higher wages 14. Outsource some of the production process to non-union factories a. lowers costs per worker 15. Steal wages a.
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