Does the expansion of the global workforce favor the capitalist?
In short: As globalization multiplies the world's labor supply, the balance of power is shifting. Professor Douglas McWilliams explores whether this trend strengthens the hand of the capitalist and examines the complex, often paradoxical impact of high profits on the real wages of workers.
In a lecture for Gresham College, Professor Douglas Mcrag McWilliams examines the modern implications of Karl Marx’s labour theory of value. The central tension in the contemporary global economy lies in the massive increase in the global labor supply, a phenomenon that has effectively tilted the economic balance in favor of the capitalist. This shift is occurring alongside a profound technological revolution, particularly in information and communications technologies, which has significantly lowered the cost of capital goods like computers.
The rise of these technologies introduces significant volatility into profit streams. Because of the massive economies of scale inherent in digital technologies, markets are likely to fluctuate between competitive states and periods of oligopoly or even monopoly. This instability makes the future of corporate profitability difficult to predict, as sectors may veer between high competition and high-profit monopolistic structures.
McWilliams also highlights a profound economic paradox regarding worker welfare. He suggests that workers in certain developing regions might experience a rapid rise in real pay driven by high profits and high rates of economic development, even if their initial wages are relatively low. This stands in contrast to workers in more established economies who may start with higher wages but see much slower real pay growth due to lower profit shares and stagnant development. While this 'exploited' worker might ultimately fare better, McWilliams notes that this outcome is certainly not universal.
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- Summary by Intellect · source: Was Karl Marx Always Wrong? - Professor Douglas McWilliams
- Also: Was Karl Marx always wrong?
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