Tuesday, September 28, 2010

High Profits, High Unemployment

by Gene DeNardo from Dissident Voice

This is an excellent description of how the Federal Reserve (the US central bank that issues money "out of thin air" and owned by private parties) has served different, but important functions in different time periods. 

In more recent times this money has been used to increase capital, that is, the implements of production to reduce labor costs. This plus the outsourcing of production and jobs to low-wage third world countries has created both high unemployment and high profits to the owners of capital in the US. The author goes on to explain how the ruling class of the capitalist system is attempting to manage this potentially explosive situation.