low wage capitalism

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Low-Wage

CapitalismColossus with feet of clay:

What the new globalized, high-tech imperialism

means for the class struggle in the U.S.

Fred Goldstein

World View Forum


4/339

Goldstein, Fred.

Low-wage capitalism

Colossus with eet o clay:

What the new globalized, high-tech imperialism

means for the class struggle in the U.S.

Fred Goldstein. 1st ed. p. cm.Includes index and bibliography.

ISBN-13: 978-0-89567-151-6

ISBN-10: 0-89567-151-6 (paperback : alk. paper)

1. Globalization Economic aspects.

2. Inormation technology Economic aspects United States.

3. Employment Eect o technological innovations on.

4. Contracting out.

5. Working class United States.

6. Marxian economics.

HC 59 F67 2008

338 2008929963

Copyright 2008

Ideas in this book may be reely disseminated.

Any properly attributed selection or part o a chapter within

the air use guidelines may be used without permission.

World View Forum

55 W. 17th St., 5th Floor

New York, NY 10011

Available at discounted bulk rates for educational useTo place credit card orders or bookstore and university

invoice orders and discounts, contact: Leftbooks.com

Book fonts: Minion, Fenice and Myriad


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Low-Wage Capitalism ,

C O. H ,

.

I ,

. D .

Bertell Ollman, author and Professor of Political Teory,

New York University

I , F GLow-Wage Capitalism

. B ,

,

.

E

,

. E M , G

, . U .

Gregory Elich, author oStrange Liberators

F F U S, F P, 4

,

. O

.

Berna Ellorin, Secretary-General, BAYAN USA

160 Communist Manifesto, F G

M

21 . N - ,

-

.

Abayomi Azikiwe,Editor Pan-Arican News Wire

and Contributing Editor or Workers World

T

U.S.

L A ,

U.S. . T

.

Ignacio Meneses, Co-chair, U.S.-Cuba Labor Exchange

High praise forLow-Wage Capitalism


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About the author

F G M Workers World. Low-Wage Capitalism

P R G S S-

, N Y C M 2006 W W P.

, C F C,

I C S B M 2007 -

IV I C W KM C 21 C, H, C M 2008.

H S, L

A S, I.

[email protected]

P :

, , , ,

.Low-Wage Capitalism

- .

Martha Grevatt,founding board member (1994) andnational executive ofcer (1996-2001), Pride At Work, AFL-CIO,

Executive Board member UAW Local 122

W . I

, . B,

, !

David Sole, President, UAW Local 2334, Detroit, Michigan

Low-Wage Capitalism F G ,

.

Clarence Thomas, Executive Board ILWU Local 10

and Co-chair o the Million Worker March Movement

L, , ,

G

. Michael Parenti, author o Contrary Notions

W , , ,

M .

F G .

Howard Zinn, author oA Peoples History of the United States


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About this book T

A note on the current capitalist crisis and low wages

Postscript: the crisis within the crisis

Section 1:

Imperialist globalization and worldwide wage competition1 Doubling the global workorce 3

P 74 10

T 11

C 13

M 15

2 New global networks o exploitation 19D: C

? 19, 22

H-P 22

I B M 23

L C 23

U.S. 24

B 25

M 25

3 Supply chains: vassals o the lords o capitalism 27F, 28

S 30

B 31

C 32

C - 33

P- -: 36

F 37

4 Oshoring: millions o service jobs at risk 39O 40

W- E J 44

B 45

Table of Contents


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5 Marxism and globalization 49L - 51

T 53

T 54

M 55L 56

I 57

A 58

I U.S. 60

A- - 62

S - 65

G 67

Section 2:

Three decades of getting poorer

6 Where high tech is leading 75H 77

R 79

C 82

D 83

T 8630 87

A 89

T 91

L U.S. 93

H 95

M , 98

F - 100

7 Globalization and low pay 10544 - 2006 107

D 108

M 111

M - - 115

C , 119

D 121

A , 123W W-M 127

8 Sexism, racism, and low wages 133W 133

T C 134


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N - 136

A A 137

R - 143

9 Globalization and immigration 149

L 149S 150

M D 2006 U S 151

L/ - 153

V - U.S. 154

NAFA M 156

R 159

10 Late 1970s: Attack on unions begins 161T 161

L , R PACO 164

PACO 166

G 167

Section 3:

Lessons from the past for the future struggle

11 Decades o rank-and-le ght-back 173

S D 174S : - -? 192

12 Reviving the struggle 195 195

L 199

S -- 201

F 209

R-- 210

13 High tech undermines old orms o class organization 213L 214

A 215

R 216

B - 217

T 218

M , 219

14 Building a broad working-class movement 221T 223

U.S. : - 223

K - 226


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W LGB 229

U 232

N 234

M 237

T M W M M 241F , 245

F , - 246

15 Class struggle and capitalist legality 249-H, -- : 249

H R W U.S. 252

Uq 254

L 256P 258

16 Class consciousness and class struggle 261C - 263

UAW 2007 266

B 269

G 273

T 276

N 277S 278

Aferword: Imperialist war in the 21st century 281T 281

R C B 283

C 285

P, 287

E 288

Acknowledgments 289

Bibliography 291

Endnotes 297

Index 303

Tables and charts

Employment growth 61 months ater peak 68

Manuacturing increases & employment decreases99Additional hours worked per two-earner amily per year 116

The sel-suciency standard or Philadelphia in 2004 124

Efects o anti-labor ofensive & restructuring on Arican-American workers 139

Jobs o undocumented workers 155


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About this book

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A note on the current capitalistcrisis and low wages

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Section 1

Imperialist

globalizationand worldwide

wage competition


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Doubling the global workforce 3

1

Doubling the global workforce

Political expansion after 74 years of contraction The new international division of labor

Corporate design for worldwide wage competition Marx on wages and competition

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4 Low-wage capitalism

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ties, no longer holds, as an increasing share o world manuacturing

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Corporate design or worldwide wage competition

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New global networks of exploitation 19

2

New global networks of exploitation

Dell: Collaboration of individuals or global regimentation of workers? Toyota, the pioneerHewlett-Packard IBM Liz Claiborne U.S. auto companies Boeing Making stuff cheap

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Supply chains: vassals of the lords of capitalism 27

Supply chains: vassals ofthe lords of capitalism

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Offshoring: millions of service jobs at risk 39

Offshoring: millionsof service jobs at risk

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75/339

Marxism and globalization 49

Marxism and globalization

Lenin on 20th-century imperialism The dual character of imperialism Three factors behind

new globalization Marx on technology and international division of labor Lenin

on the previous imperialist division of labor International solidarity and globalizationAn irony that helped the globalizing exploiters Impact on U.S. workers of defeat of

socialist bloc Anti-communist crusade showed ruling-class fear Socialist camp set

standard for working-class security Global expansion cant dispel crisis of overproduction

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82/339


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86/339


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Global expansion cannot dispel crisis o overproduction

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0%

5%

10%

15%

Current cycleMarch 2001

April 2006

Averageforpriorcycles

July1990Aug.1995

July1981Aug.1986

Nov.1973Dec.1978

April1960May1965

10.4%

13.8%

8.7%

7.1%

10%

1.9%

Employment growth61 months ater peak

Reprinted rom Lawrence Mishel, Jared Bernstein and Sylvia Allegretto, The State of Working America, 2006/2007.Copyright 2007 by Cornell University. Used by permission o the publisher, Cornell University Press.

Percentage o growth in employment created in each recovery 61 months (ive

years) ater the highest level o employment in the previous recovery period.For more than a quarter o a century U.S. capitalism has put ewer and ewer

workers to work with each recovery. [FG]


95/339


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97/339


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Three decades

of getting poorer

Section 2


100/339


101/339

Where high tech is leading 75

Where high tech is leading

High tech and the military Role of technological offensive in weakening

unions Changed social composition of working class Declining rate of

profit and capitalist crisis The era of permanent layoffs 30 million lose theirjobs A ceaseless bloodletting The end of safe jobs Law of capitalistaccumulation applied to U.S. High tech and increased exploitation of labor

Manufacturing jobs down, manufacturing up From manufacturing jobs to

low-wage service jobs

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103/339


High tech and the military

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104/339


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105/339


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Role o technological oensive in weakening unions

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Worldwide wage competition

makes the working class

feel great economic pressureeven during a capitalist

economic boom


106/339


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107/339


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, 1930 1950 1960.

S M, W W P,

High Tech, Low Pay: A Marxist Analysis

of the Changing Character of the Working Class, 1986,

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108/339


Changed social composition o the working class

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109/339


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Declining rate o proit and capitalist crisis

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110/339


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111/339


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112/339


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The era o permanent layos

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600 - 40,000 , - C.

I A 2007 8

Over the past thirty

years layoffs have

become a way of life

for the vast majority

of workers and

business as usual

for the bosses


113/339


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30 million lose their jobs

L U, New York Times , -

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- The Downsizing of America

Times. N , The Disposable Ameri-

can: Layoffs and Their Consequences, ,

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114/339


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115/339


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.126

A ceaseless bloodletting

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, to the same

jobs that they had been laid o rom, with the same pay and beneits

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116/339


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.127

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11,400 .


117/339


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.) 1980, U.S. -

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1995, , ,

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.129

The end o sae jobs

C -W W II , U.S. -

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.

A M High Tech, Low Pay 1986:

U.S.

S W W. A - . I

W

J.130

M

low wage capitalism

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