Perhaps the best definition of recessionist economics was written by Samuel Gompers President of the AFL 1886-1924. Writing in the January 1919 issue of "The American Federationist" Gompers summed up the recessionist position:
"Then too there is ever present that ill-advised and time refuted old school of political economists who always prescribe their dogma of reduction in wages for industrial ills whenever there arises any great question of industry, trade, commerce or finance. Their ever ready remedy for industrial stagnation is to cut wages and increase the hours of toil. With their philosophy or sophistry they would forestall or meet a condition of shrinkage in the markets of industry by still further reducing wages and lengthening the hours of work. To these false prophets and malpractitioners of economics, the law of supply and demand is the Alpha and Omega of their concept of political economy and sociology. Obviously it has never occurred to these men that by reducing the consuming power of the great masses and causing extended unemployment, privation and suffering of the people, industrial stagnation would not be abated or lessened, but on the contrary would be made more acute." (57)
Still true today as it was then.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment