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2003 Sept-Oct AMFA Challenges Jobless Recovery Poverty IAM’s Job Protection Leaves Millions Amidst Plenty Racket In Misery Page 3 Page 5 Page 8 OR O AB MN L IA VINCIT Published by the Socialist Labor Party Established in l89l VOL.113 NO. 3 SEPTEMBER-OCTOBER 2003 $1.00 ‘KNOWLEDGE WORKERS’ Globalize, Bracing for a Global Or Die! Does the rush toward globalization con- Shift in Service Work firm that capitalism “must nestle every- where, settle everywhere, establish connec- hen automation began to revolutionize would still have jobs and even wield some power tions everywhere,” as Marx and Engels production lines in the 1950s and 1960s, in the capitalist economy of the future. declared in the Communist Manifesto? Wapologists for capitalism were constant- Now, however, there is plenty to indicate Is the rush to globalize a compulsion ly reassuring workers that improved methods that even those involved in computer technol- inherent in the system, or does it simply would eventually lead to easier working lives and ogy and services, as well as other information mean that capitalists are greedy and that more leisure time in which to enjoy an unprece- technologies, cannot escape the joblessness their search for the cheapest labor and dented abundance. capitalism creates: highest profits is the driving force behind it? That, of course, is not how things worked out. •An article in the July 2 issue of Salon online Does it mean that capitalism must “glob- Over the next few decades, leisure time and magazine observed that, based on present alize” or die, or could capitalism survive and real wages fell significantly for most workers. trends, “John C. McCarthy, an analyst with remain viable without expanding into every The equivalent of an extra month of work was Forrester Research, predicts that in the next 15 nook and cranny of the globe? added between 1972 and 1996, while real wages years, 3.3 million U.S. service jobs, from dropped by 20 percent over the same period. accounting to software development, totaling By 1996, Jeremy Rifkin of the Washington, $136 billion in wages, will move offshore to D.C.-based Foundation on Economic Trends countries such as India, Russia and China.” estimated an even grimmer future for manufac- •The same article noted that “A new study turing in an article for The Nation. “Within 10 from A.T. Kearney, a management consulting years,” Rifkin believed, “less than 12 percent of company owned by Electronic Data Systems, the U.S. workforce will be on the factory predicts that in the next five years U.S. banks, floor....Over the next quarter century we will see brokerages and other financial service compa- the virtual elimination of the blue-collar, mass nies will relocate more than 500,000 jobs off- assembly-line worker from the production shore—fully 8 percent of their workforce. process” thanks to automation and globalization According to A.T. Kearney’s research, the jobs working together. that will move away include ‘high-end internal Rifkin and other so-called “futurists” held out functions’ such as financial analysis, research, hope that “knowledge workers”—those in regulatory reporting, accounting and graphic These questions cannot be answered in charge of running all the technology required to design.” an offhand way. Complete answers require coordinate auto-mation, globalization and “out- •A May article in eWeek online magazine a careful examination of how capitalism sourcing” of production or administrative func- noted that “Many observers expected world works, of the economic laws that govern it, tions formerly handled by corporate staff— (Continued on page 5) and what effect those laws have on its oper- ations. Regardless of the answer, no worker can doubt that globalization is a fact, a galling ‘Capitalism Is fact, that is closely connected to the disap- pearance of millions of jobs, bloated labor markets, increased competition for work, Organized Crime’ higher productivity demands, falling wages By Paul D. Lawrence these shortcomings” and would presumably sin and declining living standards. This writer sometimes wears a button that no more. Regardless of the answer, workers know states, “Capitalism is organized crime.” These •To sum up, the Associated Press reported that globalization is here to stay, and its days it is difficult to distinguish a newspaper’s that the Corporate Fraud Task Force has effects also are here to stay. Globalization business pages from the police blotter. “obtained more than 250 corporate fraud con- inevitably means even more lost jobs, even Although, as will be shown, the current round victions, including at least 25 former CEOs; sharper competition among workers, even of corporate scandals is something of a red her- charged 354 people with corporate crime; and higher productivity demands and a down- ring, it is worth noting that the following, not obtained fines, forfeiture and restitution worth ward spiral in living standards. all breaking news to be sure, were among the more than $85 million, the [Bush] administra- Yet the future depends on workers getting crime reports on the business pages on two suc- tion said.” the right answer to these questions, and to cessive days. “Bush league” comes to mind, for all these the logical question that follows: “What can •Sam Waksal, former CEO of ImClone offenses are petty larceny compared with what workers do about it?” Seeing to it that they Systems Inc., began serving a federal prison Socialists have called “the greatest robbery in get the right answers is your job, and ours. sentence of more than seven years for securi- history”—the exploitation of the working class Our job is to explain how capitalism works, ties fraud and perjury. by the capitalist class. Amazingly, the U.S. gov- why it inevitably works against the inter- •A subsidiary of Abbott Laboratories pleaded ernment publishes statistics that allow work- ests and well-being of workers everywhere, guilty to obstructing a federal investigation of ers armed with a knowledge of Marxian eco- and what the American working class can Medicare and Medicaid overcharges and nomics to approximate the extent of that rob- do about it. Your job is to ensure that we can agreed to pay $600 million in fines. bery. In manufacturing alone, where calcula- do our job, by providing the financial sup- •Freddie Mac admitted underreporting prof- tions are relatively straightforward, that rob- port needed to publish and distribute The its by $1.5 billion to $4.5 billion over the past bery amounted to at least $1.64 trillion in 2000. People. And this is no time for either of us to three years. The new CEO told a House of That is the figure of value added by manufac- fall down on the job. Do your part by using Representatives subcommittee that the resi- ture as reported by the U.S. Census Bureau. the coupon on page 7, and we will continue dential mortgage provider knew “how to fix (Continued on page 7) doing ours. Visit our Web site at www.slp.org 2 THE PEOPLE SEPTEMBER-OCTOBER 2003 SLP Letters to the Press ‘Peace Is Attainable?’ so I say what I have to say—in case it helps. Dear Editor, Thank you for providing a place for alternative At the end of [your] Forum column, “Peace is viewpoints. The only way to preserve democracy Attainable?” (March 4), you ask, “Got a better is to practice it. plan?” I empathize with your passion and con- Jill Campbell Goodyear-USWA Negotiations cern and I offer the following perspective. Forestville (Calif.) Gazette, Contract negotiations between Goodyear Tire Capitalism is a primitive method of economic April 18–May 16 & Rubber Co. and the United Steelworkers of exchange. It began to replace feudalism several America (USWA) were under way as The People centuries ago and now dominates the world. Better System went to press. The outcome of the talks will Having reached its peak a few decades ago, it Norman M. Parsons (“More socialism,” letter affect some 19,000 workers in 14 states. has become outmoded, regressive and very dan- May 7) is misinformed about socialism. As a Goodyear claims it has lost $1.3 billion over the gerous. member of the Socialist Labor Party, I’d like to last two years. In truth, however, the company The main components of capitalism are the set the record straight. hasn’t lost a dime. What it means by “losses” is profit motive, competition, acquisition and Socialism has nothing to do with universal that it has too much capital tied up in unsold exploitation backed up by ever increasing mas- health insurance. That can be effected—and has inventories. Worldwide overcapacity and weak sive physical defense forces. Such a system been in many countries—without changing the demand have reduced anticipated sales and needs to expand and protect its markets and basic capitalist relations of production. These frustrated the company in converting piles of resources, and it needs cheap labor to reap big include private ownership and control of the surplus value into profits. profits. Can we not see then, that the dynamic of means of producing goods and services and pro- To rid itself of unneeded capacity, the mainte- such a system is conflict and the end result is duction for sale with a view toward profit nance costs that go with it, and of having to dip ultimately war? Where else could it lead? through the exploitation of wage labor. into revenues to pay workers to produce even It is inconsistent to subscribe to and support a The government, or political state, exists to more for deposit in swollen inventories, Good- particular system and then protest its defining uphold these capitalist relations of production.
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