| This question <554|563-8> overall <561|562-2> Neolib: <429|562-2>. graded A |
| Question 524: According to Marx, the only way to increase profits is to shorten the portion of the day during which the workers produce an equivalent of their wage, and to extend that portion of the day when they create unreimbursed new value for the capitalist. Are the capitalists aware of it that all their cost cutting measures, if successful, go at the expense of their workers? |
| [562-1] Neolib: As noted in multiple submissions this semester [423], [434], [444], [446], [456], [465], and [544] the majority viewpoint is that capitalists are well aware that their cost cutting measures are at the expense of the workers. |
| Several reasons were given that would indicate capitalist awareness, such as salaried situations (more work/same pay), wage cuts (with same productivity levels), benefit cuts (seemingly without cause), and preset billable hours scenarios (i.e. labor determined prior). |
| These are all excellent examples of capitalist awareness regarding employee pay structures. On a more practical level, and observable in everyday situations -- with very automated production, integrated software capabilities regarding productivity, and modern cost/benefit capabilities there is no question regarding capitalist awareness. Of course they know...(its their job to know) As a future economist it shall be my job “to know.” |
| While modern capitalists use much more sophisticated (and subtle) forms of exploitation, the emphasis is still on efficiency. In this respect there is a constant pursuit to lower the a-b (necessary labor time) in order to create more surplus value (b-c). This aspect of capitalism cannot be reputed. In many respects it is the very law of capitalism, that is to say maximize profit. Historically this has always been done in conflict to the worker and with deference given to the capitalist. If labor power was paid equivalent to the value created then the capitalist system would fail. |
| An excellent “minority position” was given this semester by Oak in [452], and Hans cautions us [554] not to forget it (I didn't). I use the word minority very cautiously as his position is in fact the majority opinion in capitalism, not to mention mainstream business schools. That is to say that efficiency gains via capitalist investments are entitlements to the capitalist. He makes the investment, he reaps the reward....Or better yet “He who has the gold (the means of production), makes the rules”. A coarse analogy, but very applicable I feel. |
| I am inclined to agree with the above scenario (on a risk related basis only), but this says nothing regarding the prior “cuts” which work in detriment to the laborer. How can these acts be justified? I for one feel that they cannot be, and in fact justification for such would seem logically (and ethically) lacking. |
| As noted by Oak as well “a capitalist does not have the same thought processes as Marx.” |
| Apparently not, and we all suffer for it... |
|
|
|||||