Two Questions for RD Wolff
Following on R. D. Wollf’s brief examination of the differences between the US and European labor movement response to austerity (French Labor Activism, US Labor Passivism by Richard Wolff), we have two questions to pose to him:
- Why has Europe not coordinated their response more closely? It seems to us that, since the true impulse toward austerity has been driven by the global banking cartel, such a coordinated response is called for.
- What is the required response to austerity? Is it possible for each nation in the Euro=zone to continue on the road of deficit spending, i.e., on the road toward constantly increasing demand more than domestic output? Does this not imply — when applied to all nations simultaneously — that total demand will exceed total output. Since this is not possible, doesn’t deficit spending imply European demand increases at the expense of consumption among the less developed nations? Why has a reduction in hours of work not yet surfaced as an alternative demand to austerity and failed Keynesian economic policy?