Monday, February 22, 2010

The by-product of globalisation is a heavily redundant work force swaths of what was previously needed are needed no more, forever more.

In order to support these poor souls, additional services are deemed required from up top. Also (in some perverse speculate to accumulate mentality) Labour has used this pool of surplus labour to massively increase the public sector in pointless and wasteful ways

A statistic in the accountancy industry I recall when told in 2007 was that in 1997 it used to take 2 people to inspect and clear a tax return form. In 2007 it takes 7 people to do the same job. I do not know how many it takes today as I am completely out of the accountancy loop.

I guess the reasoning being that they are scared of having so many people in certain areas on the dole doing absolutely nothing. For two reasons in that unemployed people spend less, they have less and thus spend less. This leads to a negative feed back loop of sorts.

Secondly large numbers of unemployed people can be dangerous, Sun Tzu wrote 2000 years ago that it was dangerous to corner your enemy, as he will fight harder. The modern variation is a wounded animal cornered, in that they don’t realise it as they are distracted by bread and circuses but such people hold an incredible amount of power. In that violence makes people sit up and take notice, which is why we have so much bread and circuses. I’m not inciting violence or anything but even if the violent side lose things change.

In 1989 the PRC government sent in infantry and tank support to crush the protestors, in the micro short term it worked, control was wrestled back to the government martial law was declared. A sea of blood occurred the protestors seemingly killed and injured in very large numbers seemed to have lost. Except that they didn’t in that in 1990 the PRC government suddenly changed and made a lurch for the capitalist right. Although this does serve as bread and circuses again, the quality of life has increased for many people in China. So they did effect change after all..



As far as the government are concerned, the only thing worse then someone not contributing tax, is a person not consuming/spending in the economy (pity they didn't think about this when they allowed our industries to die instead of investing in them). Hence the massive spending in public service employment, not that many people in some areas have a choice anyway.


Is this wrong and cruel in the long term? Probably yes. Their wages/pensions etc are indeed insulated from the global market conditions, which is the real reason behind the wage disparity compared to the private sector. However, not only are their jobs in the future dependent on their so-called market need, but political whim. But what is the solution? I’m unsure the 1930s depression was ended with a huge war which destroyed excess industrial capacity, men in large numbers etc.

What will be the cure for this time? What am I essentially saying? I think there needs to be some sort of change REAL change not pretend change.

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