Increasing Jobs and Wages

Managing trade is a government responsibility. It should lead to increasing jobs and wages.

Business and Trade

Someone has suggested that trade is good for the economy, since the advocacy of business for more trade proves this to be the case. Yet it would be unnatural (and should not happen from a governance perspective) for businesses to put increasing jobs and wages for the nation as a whole as a priority in their boardrooms. Just saying this makes it sound as ridiculous as Senator Sanders’ continual attack, in the US context, upon business profits.

Adam Smith’s “Invisible Hand”

It is the government that has actually made Adam Smith’s “Invisible Hand” work with all the power it has manifested in the 19th and 20th century. It did not happen by some wonderful and mysterious alchemy, as some economists seem to think. Yes, protectionist trade policies can lead to increasing jobs and wages.

It is the government’s job to make sure that trade agreements it signs increase jobs and wages; it is not the job of business.

Yes. It is amazing, but the governments of USA and Australia have delivered the fundamentals of economic growth, mostly through protectionist policies in the 19th century (USA) and in the 20th century (Australia). They did actually increase jobs and wages.

In the US context, only Donald Trump has realised the truth of this obvious point. Certainly not most “economic experts.”

Economists are yesterday’s prophets

Recent history has shown that so-called economic experts are blind to economic and political facts. They are stuck in a 1820’s paradigm. Despite having had nearly 200 years to check out whether Comparative Advantage works or not for ordinary workers without government oversight, they haven’t bothered.

Nationalism is the only way forward

Most commentators are totally blind to benefits of a revival of nationalism. Yet this will again see governments looking after the interests of voters.  How can it be otherwise in a democracy? Do commentators think that increasing jobs and wages for ordinary workers (voters) is not important?

Today, in the Australian, Bernard Salt pointed out that only 300,000 jobs have been lost in manufacturing over the last 16 years, but 1.3 million jobs have been added elsewhere. Yet despite the superficial appeal of this analysis for the zero-tariff argument, it actually means that 300,000 people are now out of a job and will not be able to retrained in anything like the jobs that they have lost. They are NOT going to get jobs in the rapidly growing medical / health industry, except as janitors and ancillary staff. Perhaps they can all become baristas in the food service industry! Is that the best we can offer?

Yet a modest tariff regime that would increase the probably of these people being employed in paid jobs, suited to their skills and abilities. Sure, well-paid medical workers and economists might have to pay 10% more for some goods, but they can afford it!

Sometimes we forget that an average IQ is 100, not 150, even in the USA or Australia! Not everyone can be trained for a highly-skilled job.

Increasing jobs and wages

Jobs and wages are more important than ever-cheaper goods. Who can deny it? Apparently, almost all economists. Unfortunately they are leading a declining bunch of out-of-date politicians by the nose to their decline and eventual irrelevancy.

Nationalism will eventually prevail over the current ideologically driven, dominant, economic approach.

Bring on the day! In Australia, Barnaby Joyce has landed a part on the government dais; In the UK, Theresa May has arrived; In USA, Donald Trump has arrived.

Emmanuel Macron offre un faux espoir

Emmanuel Macron offre de faux espoirs à la France et aux marchés financiers, qu’il peut mener la France dans un avenir meilleur. Il ne peut pas.

Partager les marchés adorent Emmanuel Macron

Au cours des 2 derniers jours, les marchés de la part du monde ont augmenté de 1% à 2%, ce que les experts attribuent à la marge étroite que Emmanuel Macron a obtenue sur Marine Le Pen au premier tour de scrutin. Plus précisément, ce «sentiment positif» est appuyé par le mouvement des dirigeants socialistes et républicains français pour endosser Emmanuel Macron, afin de s’assurer que l’agenda radical de Marine Le Pen ne gagne pas le terrain central.

C’est un faux espoir

Bien sûr, si Emmanuel Macron gagne la présidence, le capital mondial sera superficiellement le gagnant, de sorte que la réponse des marchés mondiaux est assez rationnelle. Cependant, il sera effectivement contre-productif.

Une économie nationale robuste doit fonctionner pour tous, pas seulement pour les gagnants. Malheureusement, l’agenda d’Emmanuel Macron est un programme pour les gagnants, pas pour tout le monde. Il veut supprimer l’état de la protection du salaire des travailleurs. En d’autres termes, il veut faciliter la concurrence dans un monde où le capital mondial peut déplacer le travail d’un pays à l’autre, en poursuivant le coût salarial le plus bas en fonction des compétences requises. Cela augmentera les bénéfices mondiaux des entreprises à court terme, mais cela réduira également la taille du marché français pour la production des sociétés mondiales.

La macroéconomie d’Emmanuel Macron est inefficace

La perte de la prospérité générale, qui se poursuivra sous les «prescriptions» politiques d’Emmanuel Macron, est quelque chose que les macroéconomistes, comme Emmanuel Macron, ne comprennent pas. Quelque chose de plus qu’une macro-pensée est nécessaire.

Les entreprises mondiales produisent principalement des biens que le quart supérieur de la population mondiale veut, et non ce que veulent les plus pauvres des trois quarts. Les besoins de ce dernier sont toujours axés sur la nourriture, les vêtements et les abris. Ils n’ont pas besoin de voitures de luxe, telles que celles produites en France, ou des vêtements coûteux ou de haute couture. (Il est possible que certaines entreprises alimentaires mondiales puissent convaincre les Africains pauvres que le lait en poudre est meilleur pour leurs enfants que le lait maternel, mais je laisserai cela d’un côté).

Prendre des emplois loin des Français réduira la prospérité de la moitié inférieure de la population de la France. Ils cesseront d’acheter leurs biens, car ils ne peuvent plus se le permettre. En outre, les petites entreprises de France seront appauvries en raison d’une perte de ventes aux consommateurs français ordinaires. À leur tour, ils ne pourront plus se permettre d’acheter plus de véhicules à moteur à la hausse.
Pour ceux qui ne comprennent pas la dynamique positive de la circulation circulaire des richesses des plus riches aux plus pauvres (pas par l’aide sociale ou un salaire minimum universel), je leur suggère de lire George Money’s Money, Blood and Revolution, présenté sur ce site.

Emmanuel Macron ne se préoccupe pas des travailleurs ordinaires

Il ne fait aucun doute que Emmanuel Macron est sur le chemin de tromper les électeurs et les travailleurs ordinaires. Je laisserai son ordre du jour à l’ordre du jour.

  1. Il propose de convaincre Berlin au cours des six prochains mois d’adopter une politique d’investissement active et de progresser vers une plus grande solidarité en Europe.
  2. Il a promis de réduire le taux d’imposition des sociétés de 33 pour cent à 25 pour cent.
  3. Il veut garder la semaine de travail juridique à 35 heures, mais laisser la négociation des heures réelles de travail aux entreprises.
  4. Il a également fait valoir que les salariés à faible revenu ne reçoivent pas certains avantages sociaux.

Ce sont toutes des politiques raisonnables pour faire face au malaise économique de la France, mais n’aura aucun impact sur la perte d’emplois et les salaires pour les travailleurs adultes et ne fixera pas le chômage des jeunes. Ils peuvent réparer les problèmes qu’il peut voir, mais pas ceux qui affligent la nation.

Au lieu de cela, un véritable correctif peut être construit autour d’un mouvement pour augmenter le travail effectué par les Français, même en augmentant leurs heures de travail. Cela ne peut pas être fait si la France reste désavantageusement liée à l’économie allemande via l’euro. Il sera également très difficile à réaliser si la France continue de ne pas maîtriser le nombre de nouveaux travailleurs potentiels entrant dans leur pays.

La solution d’Emmanuel Macron ne sera pas efficace – ce n’est même pas une “solution”. C’est juste un moyen de retarder le mauvais jour de la vérification. Son élection va empirer une mauvaise situation et se hâter d’une solution encore plus radicale. Les électeurs français ne toléreront pas longtemps les politiques inefficaces de l’élite intellectuelle.

Emmanuel Macron offers false hope

Emmanuel Macron offers false hope to France, and to the financial markets, that he can lead France into a better future. He cannot.

Share markets love Emmanuel Macron

Over the last 2 days, share markets around the world have risen by between 1% and 2%, which pundits attribute to the narrow margin that Emmanuel Macron achieved over Marine Le Pen in the first round of voting. More accurately this “positive sentiment” is supported by the move by both the French Socialist and the Republican leaders to endorse Emmanuel Macron, in a effort to ensure that the radical agenda of Marine Le Pen does not gain the central ground.

It is a false hope

Sure, if Emmanuel Macron gains the presidency, global capital will superficially be the winner, so the response of the world’s share markets is quite rational. However, it will actually be counter productive.

A robust national economy needs to work for everyone, not just for the winners. Unfortunately, Emmanuel Macron’s agenda is a program for winners, not for everyone. He wants to remove the state from the protection of workers’ pay. In other words he wants to make it easier to compete in a world where global capital can move work from one country to another, chasing the lowest wage cost commensurate with the skills required. This will increase global corporate profits in the short term, but it will also reduce the size of the French market for global corporations’ output.

Emmanuel Macron’s macro-economics is a dud approach

The loss of general prosperity, which will continue under Emmanuel Macron’s policy “prescriptions” is something that macro-economists, like Emmanuel Macron, cannot understand. Something more than macro-thinking is required.

  1. Global corporations mostly produce goods that the top 25% of the world’s population want, not what the poorer 75% want. The latter’s needs are still focused on food, clothing and shelter. They do not need luxury cars, such as are produced in France, or expensive food, or haute couture clothing. (It is possible that some global food companies might convince poor Africans that powdered milk is better for their children than mothers’ breast milk, but I will leave that to one side for the moment.)
  2. Taking jobs away from the French will reduce the prosperity of the “bottom” 50% of the population of France. They will stop buying their goods, because they can no longer afford them. In addition, the small businesses of France will be impoverished because of a loss of sales to ordinary French consumers. In turn, they will no longer be able to afford to buy more up-market motor vehicles.

For those who cannot understand the positive dynamics of the circular flow of wealth from the richer to the poorer (NOT via welfare or a universal minimum wage), I suggest they read George Cooper’s Money, Blood and Revolution, introduced on this site.

Emmanuel Macron doesn’t care about ordinary workers

There is no doubt that Emmanuel Macron is on a path to dud ordinary voters and workers. I will let his policy agenda speak for itself.

  1. He proposes to convince Berlin in the next six months to adopt an active investment policy and move towards greater solidarity in Europe.
  2. He has promised to lower the corporate tax rate from 33 percent to 25 percent.
  3. He wants to keep the legal work week at 35 hours but leave negotiation of real work hours to companies.
  4. He also argued that low-wage earners not receive certain welfare benefits.

These are all reasonable policies to address the economic malaise of France, but will have zero impact on the loss of jobs and wages for adult workers, and will not fix youth unemployment. They may fix the problems that he can see, but not those actually afflicting the nation.

Instead a real fix can be built around a move to increase the work done by French people, even increasing their hours of work. This cannot be done if France remains disadvantageously linked to the Germany economy via the Euro. It is also will be very difficult to achieve if France continues to have no control over the numbers of new potential workers entering their country.

Emmanuel Macron’s solution is a dud – it is not even a “solution.” It is just a means of putting off the evil day of reckoning. His election will make a bad situation worse, and will hasten-on an even more radical solution. French voters will not tolerate the ineffective policies of the intellectual elite for much longer.