america-wakiewakie
Many would-be reformers of capitalism (including the Labour Party propagandists and the Independent Labour Party) urge that if only the capitalists would pay higher wages to the workers, enabling them to buy more of what they produce, there would be no crisis. This is utopian nonsense, which ignores the inevitable laws of capitalism — the drive for profits, and the drive of competition. The drive of capitalism is always to increase its profits by every possible means, to increase its surplus, not to decrease it. Individual capitalists may talk of the “gospel of high wages” in the hope of securing a larger market for their goods. But the actual drive of capitalism as a whole is the opposite. The force of competition compels every capitalist to cheapen costs of production, to extract more output per worker for less return, to cut wages. Just in America, where the “gospel of high wages” was most talked of to conceal the real process of capitalism at work (intensified output from the workers, with a diminishing share to the workers), the resulting crisis has led to wholesale wage-cuts in every industry.
Rajani Palme Dutt (via peakcapitolism)