Tuesday, January 04, 2011
Factors of production
The rise of communism was brought about by the war between the bourgeoisie and the poletariat, basically people who own the factors of production and people who are the factors of production, basically owners v.s. workers.
That was a time when there was a huge surplus of labour, resulting in wages on a race to the bottom, with workers paid 'subsistence wages', money just enough to let them survive. Nothing more, nothing less.
That was a time of disgruntlement, and people had enough of working so damn hard just to make enough to survive. Work was just to buy food to power the body, so the body can continue to work and suffer. Utterly meaningless.
That was a time when people who own resources were laughing their ways into the banks, as the high revenue together with bare minimum costs meant huge profits.
Basically, that was a time when winners take all, and losers have no shit left.
The current times are gradually resembling those times. Looking at the auntie, who, crouching her back everyday, clears our office trash bins everyday, cleaning the toilet diligently while smiling at us when we walk past. The office people, supposedly educated and working in an air-conditioned, comfortable environment, cannot even use the toilets like human beings to make her job easier.
Is the auntie's worth to society much much much lower than us? Is the auntie's job way way way easier than us? Is working on a crouching body, all 85 years of it, for more than 8 hours per day, bearing all these dirt and stench left by these animals, worth only $400 per month? If that is not 'subsistence wages', what is? What does the sterling 14%-16% GDP growth mean to her?
For people who bought land, houses and properties while there were slightly rich many years ago, they have really struck it. With increasing 'average' purchasing power, retailers are able to sell at increasing prices to consumers. With increasing prices, lessees are able to charge increasing rents to tenants retailers. With increasing rents, lessors are able to sell their properties at increasing prices to lessees.
Who profits?
Lessors who sell the properties at higher prices. Lessees who rent their properties at higher rentals. Powerful retailers who are able to increase revenue faster than their rents. People who are owners of the factors of production.
Who loses?
People who are the factors of production. The worker/consumer who faces increasing prices. The retailer who faces increasing rents. If your income can't keep up with the increased prices, good luck to you. If your revenue can't keep up with the increased rent, good luck to you.
All these are scarily similiar to those times. The 'haves' having it all, and the 'have nots' having nothing at all. The people who own the factors of production laughing their ways into the banks, while people who are the factors of production churning their tired bodies along.
Take a look at these happy lessors and lessees. And take a look at these struggling retailers and workers.
The divide is getting wider, day by day..
lowtide blogged @
10:16 pm
