Are we in a recession? Sure unemployment is rising as a half of a million workers lost their jobs these past few months. Third quarter reports are bringing lots of bad news in the housing market. One bit of news that may get lost in all the panic is the report that productivity is rising in the United States.
Remembering the recession and gas lines at the pumps in the 1970's I think not.
Yes food prices are up and things are seemingly costing more. But people are spending like crazy and companies are producing a lot more efficiently. In a way I think the economy is simply adjusting its under ware.
The mass news media is reporting productivity and recession as two separate issues. But they aren't.
Productivity in relative terms means fewer workers are producing much greater output. To use the terminology of political economy, the rate of surplus value is increasing as the variable labor input is shrinking. Business firms are organizing to make workers more productive so they can operate with fewer workers in order to maintain something approximating the current rate of a producing exploitation.
Rising productivity is always treated as really good news by the corporate media and most of the business economists.
But it depends on which social class you're in. More affluent people tend to save for rainy days and can weather the proverbial recessionary storm. While others seem to live on a day to day basis within a pay as you go life style. One fact is certain that this is the best country in the world and we all shall weather this recessionary storm. Hang on though because I fear were in for a few months of rough rapids ahead.
One thing that really concerns me is the lack of federal government constraint on spending. And now with all of these government "bail outs" and President-elect Obamas sociolistic tendencies, are we digging ourselves into a grave of debt.
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