R is for Rentier by Michael Hudson

by Michael Hudson
Writer, Dandelion Salad
michael-hudson.com
April 5, 2014

R

Image by duncan c via Flickr

Part R in the .

Race to the bottom: A term for dog-eat-dog competition by which countries compete by cutting wage levels so as to produce in the cheapest market, not by raising wages and labor productivity. The effect is to shrink the circular flow between producers and employee-consumers, leading to declining living standards. Under these circumstances productivity is increased only by working the existing labor force more intensively and cutting back medical insurance, old-age pensions and other social welfare expenditures. (See Free Market.)

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