- js reader version
- view hidden posts
- tags and related articles
by Rainer Balcerowiak
Friday, Jan. 13, 2006 at 5:40 AM
Possible counter-measures against structural mass unemployment and an army of marginalized working poor are well-known: public investment programs, a legal minimum wage and redistribution of labor through reduced working hours.
LABOR MARKET VOODOO
From One Euro Jobs to the Combined Wage
By Rainer Balcerowiak
[This article published in: Junge Welt, 1/04/2006 is translated from the German on the World Wide Web, http://www.jungewelt.de/2006/01-04/002.php.]
Wonder cures are often offered when rational solutions of serious problems are not in sight. However faith in these cures quickly disappears as the disastrous labor market reform laws of Peter Hartz demonstrate. Now the so-called combined wage should be instituted again. This catchy term allows many interpretations.
The mechanism of this instrument is relatively simple. The state helps the seller with a little subsidy since the sale of one’s labor power at a living wage is no longer possible for many people for want of demand. Apart from the domestic economic effects of the newly arising purchasing power, this was financed through reduced transfer payments to employed persons and their contributions to tax and social security revenue. So much for the theory of the combined wage prophets.
However the foreseeable side effects of this therapy are diligently hidden. Thus a state subsidized low-wage sector of several million jobs would inevitably lead to a further erosion of the wage scale and gigantic budget deficits. What businessman would pay five euros per hour for a guard when his competitor only needs to pay half since his wages are subsidized? Many service- and artisan enterprises feel the competition through one-euro jobbers and subsidized personal companies as threatening their existence.
How the domestic economy can be revived and how living wage jobs can be created by means of subsidized mini-wages remains veiled. The combined wage proponents cloud over the amount of the minimum standard. It is rightly pointed out that the combination of unemployment benefits II and one euro jobs is already a practiced combined wage.
Possible counter-measures against structural mass unemployment and an army of marginalized “working poor” are well known: public investment programs, a legal minimum wage, redistribution of labor through reduced working hours and the minimum wage scale in every branch would be effective first steps in this direction. However this is not politically tenable since lowering the price of the commodity labor is one of the core tasks of a government in a capitalist state.
Report this post as:
GUIDE TO REBEL CITY LOS ANGELES AVAILABLE
lausd whistle blower
Help KCET and UCLA identify 60s-70s Chicano images
UCLA Luskin: Casting Youth Justice in a Different Light
Change Links April 2018
Nuclear Shutdown News March 2018
Join The Protest Rally in Glendale on April 10, 2018!
Join The Protest Rally in Glendale on April 10, 2018!
Spring 2018 National Immigrant Solidarity Network News Alert!
Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A.
Steve Mnuchin video at UCLA released
Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups
After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video
Resolution of the Rent Strike in Boyle Heights
What Big Brother Knows About You and What You Can Do About It
Step Up As LAPD Chief Charlie Beck Steps Down
Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29
Don’t let this LA County Probation Department overhaul proposal sit on the shelf
Echo Park Residents Sue LA Over Controversial Development
Former Signal Hill police officer pleads guilty in road-rage incident in Irvine
Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents
Center for the Study of Political Graphics exhibit on Police Abuse posters
City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre
Professor's Study Highlights Health Risks of Urban Oil Drilling
Claims paid involving Pasadena Police Department 2014 to present
Pasadenans - get your license plate reader records from police
LA Times Homicide Report
More Local News...
TheMilitary of Yemen IN In The 1990's
The Shortwave Report 04/27/18 Listen Globally!
Federal Bank Examiner FDIC recalls year long 1999 robbery in 2017
Doxa du lobby
Tech workers organize
Architect Stephen Francis Jones
UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for
What does the Quran Say About Islamic Dress??
Biodiversité ou la nature privatisée
The Market is a Universal Totalitarian Religion
Book Available about Hispanics and US Civil War by National Park Service
The Shortwave Report 04/20/18 Listen Globally!
The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder
Paraphysique de la dictature étatique
Book Review: "The New Bonapartists"
The West Must Take the First Steps to Russia
Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine
The Shortwave Report 04/13/18 Listen Globally!
“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize!
The World Dependent on Central Banks
Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine
March 2018 Honduras Coup Again Update
Apologie du zadisme insurrectionnel
ICE contract with license plate reader company
Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes
More Breaking News...