Economically Ignorant Socialists
The Communist web site World Socialist Web Site again shows how socialists, who claim to be standing up for the best interest of workers are promoting policies that will hurt workers. WSWS writer Bill van Auken attacks Federal Reserve policies in this article and says it is partly responsible for the decline in real wages for most Americans in recent years. So far, so good as I have pointed to the same connection myself.
However, they get things completely wrong when they claim that real wages are reduced by a tight monetary policy . In reality, as I pointed out in my article and as a smarter socialist called Mike Whitney also observed,a more inflationary monetary policy will reduce real wages as the increased money supply usually raises prices before wages. Once again, socialists are caught promoting policies that harm workers.
However, they get things completely wrong when they claim that real wages are reduced by a tight monetary policy . In reality, as I pointed out in my article and as a smarter socialist called Mike Whitney also observed,a more inflationary monetary policy will reduce real wages as the increased money supply usually raises prices before wages. Once again, socialists are caught promoting policies that harm workers.
posted by stefankarlsson at 11:26 PM
4 Comments:
Ignorant? In what way does WSWS advocate policies which harm workers?
In what way? I explained that in this post, namely that they advocate inflationary monetary policies which tend to reduce real wages.
How does expropriating the means of production contribute to inflation? Truly, I am curious to read your explanation. How would overturning capitalism exacerbate the problems inherent in capitalism?
Edie, this have nothing to do with the issue of socialist takeover of companies. Neither I nor the WSWS article I linked to discussed that. This is about the effect on workers in today's mixed economy system from different monetary policies.
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