imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Capital and Labor: Deeds Must Follow Criticism

by Ottmar Schreiner Tuesday, Jun. 21, 2005 at 10:44 AM
mbatko@lycos.com

A new balance between capital- and labor income is necessary. Unfortunately the opposite is happening. The constant lowering of capital taxation in Germany fans the European tax lowering competition. The public infrastructure deteriorates.

DEEDS MUST FOLLOW CRITICISM

Only more justice in sharing prosperity leads to more employment. Franz Muntefering’s criticism of capitalism was overdue. To insure social unity, redistribution from bottom to the top must be stopped.

By Ottmar Schreiner

[This article published in: Frankfurter Rundschau online, May 2005 is translated from the German on the World Wide Web, http://fro.evolver.de/uebersicht/alle_dossiers/politik_inland/wie_viel_staat_braucht_der_mensch/kapitalismus_in_der_Kritik/?cnt=666504. Ottmar Schreiner, born in 1946, has been in the Bundestag since 1980. The Saarlander is part of the left wing of the SPD (Social Democratic party of Germany). He is a co-signer of the “Saarbrucker declaration” against social cuts and for withdrawal of Hartz IV.]




Many mammoth corporations only orient profit maximization in stock prices. It is perverse when the prices rise higher the more persons are laid off. The state can observe its own tasks less and less because the public budgets are bled to death. On one side, there is growing unemployment and poverty and on the other the shameless self-service of part of the manager caste. This destroys the social cohesion and undermines trust in democracy.

If criticism remains nebulous, the seriously injured credibility of the SPD will suffer additional damage. Muntefering’s criticism could be a new change if concrete steps follow – nationally and across Europe.

The high mass unemployment is not only caused by the irresponsible activity of several “predatory capitalists” (Helmut Schmidt) or by growing shifts of firms to low-wage countries. Since the beginning of the 1990s, German firms have invested 30 billion in Eastern Europe… Germany as the “export world master” is one of the globalization winners. Its businesses are extremely competitive. However there is little domestic investment on account of persistently weak domestic demand. Jobs are hardly created. Public investments are at an historical low far below the European average.

The cause is the accelerated redistribution from bottom to the top. The increased mobility of capital in the course of the global liberalization of capital markets occurred along with high profits and stagnating or even declining wages. This development was favored by permanent shifts in tax policy.

All the parties – intentionally or unintentionally – weaken the factor labor. “Moderate” instead of productivity-oriented wage agreements have not led to more employment. Social cuts and labor market reforms have further weakened the factor labor. When unemployment leads to rapid impoverishment and the jobless must accept any work for any low income, readiness to represent their own interest is transformed into sheer anxiety. The march into the poverty wage sector must be reversed and poverty effectively combated. Why shouldn’t legal minimum wages that function well in France, Great Britain, the Netherlands and Belgium help toward living wage incomes in Germany? The social income – above all Unemployment Benefits II and income support – is much too low. The rules were manipulated downwards according to a study of the welfare associations. A clear increase of base or benchmark wages would be a first step. A rich country like Germany cannot afford poverty, especially child poverty!

The growing polarization between top and bottom is massively promoted by tax policy. In 1960 the mass taxes paid by private households still amounted to 37.5 percent of tax revenue. By 2004 their share had more than doubled to 77 percent. The burden on working income persists despite many reforms on a high level. On the other hand, the direct taxes on profits- and assets income continuously fell from 20 percent in 1960 to less than six percent. The average effective taxation of corporations has fallen since 1960 from 34 percent to around eight percent. The public redistribution intensifies the negative effects of the primary distribution between labor and capital.

After three reductions the top tax rate is far below the international average. Mr. Ackermann of Deutsche Bank was rightly reprimanded for laying off 2500 while profits rose 25%. Why isn’t the top tax rate higher? Why isn’t there a luxury tax as in other countries?

On the national and European planes, we need a new balance between capital- and labor income. Unfortunately the opposite is happening. The constant lowering of capital taxation in Germany fans the European tax lowering competition. The public infrastructure deteriorates from schools and universities to hospitals. New instruments like a taxation of international financial transactions, drying up of tax havens and a future-oriented capital taxation stimulating real economic investments are necessary. The turn is overdue. Only more justice in distributing prosperity leads to more employment because “cars do not buy cars” (Henry Ford).

Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator S19 12:51AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh A31 10:45PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy