Source: The New Times, April 1990, Vol. 54, No. 4.
The most prophetic article of the 20th Century
“The guns were still smoking at the end of the First World War, the hospitals filled with the maimed and dying, and the politicians preparing to impose policies in Europe which would sow the seeds of another major conflict, when a relatively unknown British engineer, C.H. Douglas, wrote the most prophetic article of this century. Entitled "The Delusion of Super-Production", it appeared in the December 1918 issue of the "English Review".
This article should be compulsory reading for those who, seventy years later, (now 98 years… ed) still preach the message of greater and more efficient production as the solution to Mankind's problems. So far from the easing of the Cold War leading to a more stable and secure world, the basic cause of unrest remains...
In "The Delusion of Super-production", Douglas wrote:
“ . . .. Compared with the economic power of absorption, the world was over manufacturing before the (First World) war in nearly every direction. If any person capable of independent thought disagrees with this statement, he will no doubt be able to explain the immense development of advertising, why the cost of selling a sewing machine, amongst many other instances, was higher than the manufacturing cost; why a new model, not novel in any real essential, appeared from most of the motorcar works each year, thus automatically depreciating the value of the previous year's fashion, and why, in spite of all these and countless more desperate efforts to stimulate absorption at home, the stress of competition to sell was daily growing more insupportable, the main pressure, of course, appearing in the guise of labour troubles, unemployment, strikes for higher wages, etc., but being quite definitely felt all over the social structure and being focused from a national point of view in the struggle for markets of which war was the inevitable and final outcome."
Douglas correctly predicted that a continuation of the First World War was inevitable if industrialised nations sought to make their internal economies work by fighting for export markets….”
Continue reading…. http://www.alor.org/New%20Times/pdf/NT5404.pdf
TODAY EVEN GREATER INTERNATIONAL FRICTION
Brief Comments – On Target, 23 March 1990.
- - Source: http://alor.org/Volume26/Vol26No10.htm
“Mr. Ian McLachlan, former National Farmers' President, and now a Liberal Party "star", may have what is called charisma. And he was a useful cricketer. But his understanding of fundamental economics is woeful. Mr. McLachlan is a devotee of the dogma that increased production is the main answer to Australia's problems. He does not state what production required by Australian consumers, is in short supply. But he says that if wages were decreased by 50 percent, as a result of wage de-regulation, and productivity went up 100 percent, "you'd have a fantastic result". The "fantastic" result would be an escalation of debt.
In a prophetic article, "The Delusion of Super Production", written in 1918, C.H. Douglas predicted that attempts to solve economic problems by simply increasing production, must under present financial rules lead to greater export drives in an attempt to "capture" markets.
The end result must be greater international friction eventually leading to more military conflicts. Mr. McLachlan does not appear to have learned much from history.”
WAGES NOT COMMENSURATE WITH PRODUCTIVITY
The data is all over the Internet – it just requires people with a mind open enough to look at it and assimilate it.
- - Observation by S.H. on Social Credit discussion group
“Since 1975 workers have received almost none of the gains of increased productivity, which has increased by 143% since around 1975. In other words, productivity has more than doubled, while workers received none of the gains. This can be explained by the de-industrialization of the US economy, as heavy industries followed by manufacturing in general were exported to Asia. Due to this trend there was a huge decrease in unionization which went from 39% in 1940 to around 10% in 2014. During the same period there was a trend toward part-time work and contract labour, mergers and acquisitions, with downsizing and layoffs.
The Reagan revolution and Republican “Contract with America” both served to remove power from the working class and transfer it to corporations. One of Reagan’s first acts as President was to break the Pilots and Air Traffic Controllers strike (PATCO), replacing them all with military personnel. That was the final nail in the union coffin.
The Democratic Party in 1992 through the Democratic Leadership Conference chose to seek the same corporate and Wall St. money as the Republicans, and from that point on effectively stopped serving the working class. All these factors led to the reduction of bargaining power and political power on the part of labour, and can help explain the stagnating real wages during this period of time.
Read further: “The Delusions of Super Production” by C.H. Douglas