Capitalism Has Hit The Fan!

Professor Richard Wolff -University of Mass. Economic Professor

Book: “Capitalism has hit the Fan!”

1850 to 1970 - Generation of great expectations- Wages claimed on a steady pace.

In the South, wages wasn't an issue, Slavery!

Advertising started- all Americans wanted the good life.

Because of War, Asia and Europe was devastated until the 70 – American Capitalism had no competition. Asia and Europe caught up after the 70's

In 1970 – Wages went flat and remained that way today.

Business went over seas to spend it's money with the new competition and so went the jobs.

Business profits went sky high.

Four Factors that caused wages to remain flat.

a. Women entered the work force

b. American business exporting jobs

c. Immigration influx to US
d. Computers

American could no longer afford the goods they wanted so they started working more than one job and they have become tired and frustrated with their lives.

The booms and bust in the economy planed in the system totally demoralized the American people. The dot. Com bust and now the housing bust.

The arguments about DE-regulation and regulations no longer work to control the system. 1980 -deregulation was in effect and Business took off with no rules. Credit was provided to the works like running water and they went for it. Also, Business were buying up other business with the profits they had accumulated.

Now comes the housing bust and the business bust. The old business paradigm is broken. Regulated capitalism is dead.

Is this the answer: Silicone Valley Paradigm - employees and management sharing money and management responsibilities. No set hours, no uniform at work and a lot of play time at work and away? Marxism? Communism?

What about the Federal Reserve Bank and it's roll in the old paradigm?