A year ago Alan Greenspan was quoted by the FT (on 17th September 2007) as saying that "Profits are much higher than they should be in a world of ever intensifying global competitition". He managed an accounting explanation for this by saying that "workers compensation in the USA and other developed nations is unusually low by historical standards".
An economics explanation was lacking but he did say that real compensation parallels real productivity in the long run, but not now and, here's the killer, if wages for the average worker do not rise quickly "political support for free markets may be undermined".
So even the ex Chairman of the U.S. Federal Reserve sees that the acts of capitalists threaten the existence of capitalism.
As the man said, "sometimes even the Chairman of the Federal reserve has to stand naked".
[ This is borrowed from Ken Coates's introductory essay the The Spokesman 97, Brown Studies, published earlier this year, see Spokesman Books]
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