Originally posted by Jon`C:
I'm not sure how you are qualified to dictate what the accepted definition is. Modern practicing economists use the term to non-judgementally refer to a particular condition and type of free market economy, a definition which hasn't changed much since the Marxists invented the term to refer to the market failure that causes the middle class to turn to fascism. I personally find the definition which is given by professional economists more acceptable than the incorrect colloquial definition you believe in only because you were deliberately taught basic economics wrong.
How about all the publications cited in the Wikipedia article? https://en.wikipedia.org/wiki/Capitalism
I think you are just choosing a very narrow definition that is popular with followers of you particular ideology, because it makes it easy to judge people for saying something way less reasonable than they actually intended.
It's like being pedantic about the term "democratic" even though no government on earth is a simply, direct rule by majority. It might refer to one of several things depending on the context.
Quote:
The Chinese government actually price fixes labor below the clearing price in order to drive foreign manufacturing and mining companies out of business, so it doesn't really matter how productive American workers are, because there is a superpower with no compunctions about running its economy at a loss just to keep them unemployed. China is like OPEC for low skill labor.
Besides that, for a lot of different reasons (which Id love to discuss but don't ant to type on a phone), companies have been getting progressively larger in the US while competition has been declining. This has created a true labor market oligopsony, where in some markets you may have a choice of jobs, but all working for the same corporation (e.g. their farm, their packaging plant, their warehouse, their distribution subsidiary, etc.). Like how monopolies artificially increase prices and artificially constrain demand, labor market monopsonies naturally employ fewer people at lower wages.
These effects are both much stronger than any real productivity gap.
Besides that, for a lot of different reasons (which Id love to discuss but don't ant to type on a phone), companies have been getting progressively larger in the US while competition has been declining. This has created a true labor market oligopsony, where in some markets you may have a choice of jobs, but all working for the same corporation (e.g. their farm, their packaging plant, their warehouse, their distribution subsidiary, etc.). Like how monopolies artificially increase prices and artificially constrain demand, labor market monopsonies naturally employ fewer people at lower wages.
These effects are both much stronger than any real productivity gap.
I'm talking bigger picture. Yes, China is being a dick. But at the end of the day, third world countries who don't give a **** about worker safety or environmental impact are simply going to be more cost efficient. We consume vastly more than our equal share of natural resources, and when all is said and done, we have make our economy do a lot more per person than they do if we want to retain our position of advantage. It's not hard for companies to keep labor costs down when they have a larger pool of applicants than they have need of positions to fill. Oligopsony or no, a glut of labor is going to make it far worse.