Meme on Capitalism and Low Wages

I found this meme over at 1000 Natural Shocks (over 18s only), explaining the real reason why capitalism will collapse.

Low Wage Capitalism Cartoon

This was actually one of the contradictions realised by the critics of orthodox economic theory, such as Major C.H. Douglas, the inventor of the Social Credit movement. He argued that Britain was suffering from ‘poverty amidst plenty’, where goods and services were available. It was just that ordinary people couldn’t afford them. He therefore recommended giving people vouchers as well as money so they could purchase food and other necessities.

Social Credit never took on, except in Western Canada where it’s another far-right, Nazi movement by any other name. The problem Douglas identified is real, and is getting worse. It was supposed to have been solved by Keynesianism and the welfare state, but as that was ostentatiously junked by Thatcher in favour of monetarism – though she did surreptitiously return to Keynesian economics later in her regime – the problem has got worse. It’s why a town in Canada and now Finland have tried to eradicate poverty by giving all their citizens a guaranteed income, and why similar schemes are being backed by parts of the German Social Democrats.

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2 Responses to “Meme on Capitalism and Low Wages”

  1. Michelle Thomasson Says:

    Similar discussion to be had here and the Dutch are to trial a basic income, just an fyi: http://www.theguardian.com/world/2015/dec/26/dutch-city-utrecht-basic-income-uk-greens

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