Monday, January 30, 2017

Beyond Trump and free trade

Click here to access article by economist David Ruccio from Real-World Economics Review Blog.

It seems to me that Ruccio ignores a part of the data regarding the effects of NAFTA that he presents in this article, and I would like to point out its significance. I believe that it is consistent with an analysis from another report entitled "Wealth distribution in the United States and the politics of the pseudo-left" which I posted on my website about a week ago.  

If the following graph of Mexican salaried workers (which he supplied) also applies to American salaried workers (which I believe it does), then American middle class workers have also benefited from NAFTA.

[Note: the graph compares Average real salaried workers (the green line) with Average wage workers (the dark line).] This is another illustration of the fact that the rich ruling capitalist classes must reward their middle classes whenever they promote legislation to serve their interests. It's called "co-optation".


















However, an increasing problem for the rich ruling capitalists is their increasing introduction of more sophisticated information technology and especially automation. These technical advances is already reducing the number of middle class salaried workers; and as this development accelerates, it will present numerous problems for the stability of capitalist rule.