The “Necessary Level of Unemployment”: An Example of the Craziness of Capitalist Economics

Posted on the 05 March 2014 by Calvinthedog

Mama wrote:

Lysingur, Amazon may treat its packaging workers poorly but that hardly makes Jeff Bezos unethical. Really, if people don’t like how he’s treating them, they should quit. Work somewhere better if they can find it, but the problem is most Americans are absolutely useless. Americans are such a spoiled people. Bunch of sissies.

You’re just jealous because Bezos has billions and you have diddly squat. But that’s Darwinism. The strong, smart and fit survive and prosper, and the losers sit around complaining that the game’s not fair. Guess what, life’s not fair, so either learn to adapt or get left behind. Just be grateful you Americans have the luxury of a social safety net, paid for by Mr. Bezos tax dollars. In a lot of other countries you’d be starving in the streets, which is how nature intended it.

First, humans no longer need Darwinism as we are not running around in caves anymore. We are so advanced that it is no longer the case of strong survive and weak die. The modern welfare states allows even the weakest members to live as long as anyone else, and there Darwinian evolution in the human sense has possibly ended.

Further, we are not animals running around in the forest or the jungle to whom “the strong survive, the weak die” is an imperative.

Second, it is really disingenuous to credit social programs with Mr. Bezos since the  vast majority of folks in Bezos’ peer group (millionaires and billionaires) would like to wipe out social welfare programs altogether. In addition, Bezos himself is a hardcore Libertarian. Libertarians do not believe in an income tax and want to eliminate that whole safety net you are talking. Why credit Bezos with something he wishes to destroy?

And Social Darwinism doesn’t really work in humans anyway. In Darwinism, the best of a species survives and the worst fails. But human society is like a pond, the scum rises to the top.

Ah I see, Mama, so you’re not only a Libertarian and a reactionary who worships money and the rich like all HBD’ers, you are also a Social Darwinist and apparently a fascist (they are more or less the same thing). After all, this is where extreme reaction leads. Let me guess, Ayn Rand is your hero, right?

Where do these dissatisfied workers go when all the alternatives to Amazon treat their workers just as shitty? We have permanent unemployment in the country of 8%, which is how the capitalists want it. So therefore, all those workers cannot simply quit their Amazon job and go and get another job because there isn’t another job for them. Do you understand that we have a permanent condition in this country where there are more workers, employed or not, than there are jobs for them?

When workers outnumber jobs as the capitalists demand, then for many workers, there are simply no jobs available at all. Even when all open positions are filled, there will be many others who did not find a place at the table. I believe that there are said to be 5 workers looking for a job for every job opening in the US. With odds like that, why would anyone quit a decent paying Amazon job?

Do you realize that when “unemployment gets too low,” the insane capitalists start yelling and screaming in the pages of the Wall Street Journal, Time Magazine and other shitrags? Do you know what they are yelling about? They are yelling that unemployment is “falling to too low of a level.”

What is the problem with that? Because as unemployment gets lower, workers start getting bolder. They start to leave crap jobs like being Bezos’ slave and take off for a better job because with unemployment so low, they may well get better jobs easily.

Also workers start getting braver in asking for raises so wages start going up. They say, “Give me a raise or I will leave and go work for Joe Jones around the corner. He pays more than you do.” So workers under this low unemployment regime actually have the option to quit lousy jobs and find better ones, which you claim is simple at any time, but it isn’t. But when society finally gets to the point where workers can easily do what Mama demands of them, the capitalists yell and holler that the sky is about to fall.

What happens? Some POS like Alan Greenspan gets very nervous and worried about “excessively low unemployment.” So what does he do? He starts raising interest rates! Why? To slow down economic growth and cause companies to get rid of more and more workers so the unemployment rate goes up. So Greenspan starts throwing vast numbers of workers out of business in order to “discipline the labor market.” That means in order to stop wages from rising, because to a capitalist, there is no greater evil than rising wages.

Do you see now that the capitalists artificially monkey with the economy in order to have artificially high unemployment rates to keep wages down and keep workers properly exploited and mistreated? The more you exploit and mistreat your workers like Bezos does, the more money you make.

I will show you why the Stock Market is really an “Index of Evil.” As unemployment gets “too low” the stock market starts going down. Why? Because low unemployment means higher wages, and higher wages mean lower profits, and the Stock market measures profits. As the unemployment rate starts to climb and vast numbers of workers are thrown out of their jobs, the Stock Market starts going back up again.

I could go on and on here, but I think you are starting to get the picture.