On Monday morning, November 26, the auto giant General Motors announced plans to shut down production at five plants in the United States and Canada and shear off 15 percent of the company’s salaried jobs. The moves will cost 14,700 GM workers their livelihood.
“$100 million in 2017 GM stock buybacks” represents just one year’s buybacks.
Ever since the duopoly killed New Deal regulations prohibiting stock buybacks, each year has seen buybacks concurrent with US plant closures and plant expansion in China to the extent that US Dealers have been selling Buicks made in China for three years.
Neoliberal globalization = race to the bottom…
Another article that does not understand what capitalist exploitation really means. Capitalist enterprises buy workers’ labour power for a wage which is more or less equal to its value but extract labour greater than the equivalent of that wage. This surplus labour takes the form of surplus value and is the source of profit. But it is important to remember that, because surplus value is socially produced, an employee is not just exploited by their particular employer. Exploitation is a class relationship only: the capitalist class exploit the working class.
Ground rent, interest and profit form the surplus value produced by wage labour. Workers are constrained to selling their labour power for a wage or a salary, but during their time in employment they can produce a value greater than their wages and salaries. Because the capitalist class owns the means of life and their products, they appropriate this unpaid surplus when the commodities are sold on the market. The rate of exploitation (rate of surplus value) is the ratio of surplus labour (surplus value) to necessary labour.
As the author represents Inequality organisation Marx and Engels did not frame their arguments for socialism in terms of material equality. They did not criticise capitalism because poverty is unevenly distributed, but because there is poverty where there need be none, and that there is a privileged class which benefits from a system which subjects the majority to an artificial and unnecessary poverty. And in his Critique of the Gotha Programme , Marx argued that communism would run along the lines of ‘From each according to ability, to each according to needs’. This is not an egalitarian slogan. Rather, it asks for people to be considered individually, each with a different set of needs and abilities.
We have met the enemy and it is US. Profits before people is the Motto of corporate America.
To hell with our neighbors and neighborhoods if corporations can make an extra dollar manufacturing stuff overseas, they have no problem letting our neighbors and their neighborhoods crumble and die.
Congress allowed this to happen with massive tax breaks to disassemble Plants and rebuild in China.
This is how they Busted the Unions and the decent paying jobs. Loyalty to America and Americans, LOL.
Pizzigati sez: “Could we take that (stock buyback) incentive off the table?”
A previous generation of “we” certainly did. Back in its pre-1982 euphemism days, when the practice was rightly described as “stock manipulation.”
What’s most troubling, to me, is GM’s cancellation of the Volt hybrid. Ford too is cancelling their Fusion and C-Max hybrids. Hybrids have the potential to achieve an effective 100mpg, but that impressive mileage is not their most important benefit. Senator Sanders recently spoke about addressing climate change with both all-battery BEV and hybrid PHEV cars. The truth is, hybrids have more potential to reduce fuel/energy consumption and emissions and traffic than all-battery EVs. GM/Ford know this perfectly well I’m sure, so why are they cancelling the hybrids? There’s no good answer, but it may be their end game. BEVs like Tesla may become only available to the ultra-wealthy. Moreover, their recharge capacity is 17x that of the Fusion and Prius. In other words, that much more expensive to recharge and replace battery packs, yet offer fewer incentives to manage personal energy consumption. Just as GM & Ford cancelled their economy models, their hybrids are closer to economy and various advantages denied to most people. Let’s not forget that EVs are safer cars replaced less frequently. Planned obsolescence is likely another main repulsive reason for these corporate jerks to do their worst for profit.
people are not buying new vehicles!
The big tax giveaway last year certainly produced luxury car sales. Get a job on an oil drilling operation and the first money spent is for a new truck. My point is more serious than mere sales of economy cars. Let’s also not forget that GM, Ford & Chrysler were expanding into the German car market in the 1930’s. GM’s Opel, Chrysler’s Le Baron, Ford’s engine plants armed the NAZI regime.
it is the culture of selfishness and self-interest that has such popularity in the U.S. Until common wealth is a true concern of all people, we will have problems with equality and justice.
Always pleased to see the term commonwealth being used as it was an alternative term used by Debs for socialism