,! ,ECONOMICS ( ,CYB]NATION ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,S\RCE3 ,NEW ,POLITICS1 ,VOL4 #a1 #a#i#f#b1 ,NO4 #d1 PP4 #a#i-#c#c ,TRANSCRIB$3 BY ,?OMAS ,S*MIDT2 ,M>XISM IS (T5 UND]/OOD AS A 0!ORY ( UND]CONSUMPTION0 & AS SU* IS EASILY DISPROV$ BY ! EMPIRICAL EVID5CE ( RIS+ LIV+ /&>DS 9 CAPITALI/ NATIONS4 ,IT IS ALSO SE5 AS A !ORY ( CRISES & DEPRESSIONS4 ,! PRES5T POSSIBILITY ( OV]COM+1 EV5 PREV5T+1 CRISIS CONDITIONS SEEMS TO PROVE ,M>XISM D\BLY WRONG4 ,H[EV]1 AL?\< ,M>X DID DRAW ATT5TION TO ! LIMIT$ CONSUM+ P[] ( ! LABOR+ POPULATION1 HIS !ORY WAS NOT A !ORY ( UND]CONSUMPTION2 & AL?\< HE SAW CAPITALISM BESET ) CRISES1 HE HAD NO DEF9ITE CRISIS !ORY4 ,! ABS5CE ( ! BUS9ESS CYCLE W\LD NOT HAVE 9VALIDAT$ HIS !ORY ( CAPITAL ACCUMULATION4 ,= ! CAPITALISM ( ,M>X'S [N EXP]I5CE1 HIS ECONOMIC ANALYSIS WAS V]Y MU* TO ! PO9T & = ?IS REASON F\ND SU* WIDESPREAD ADH]5CE4 ,?IS IS N[ WILL+LY ADMITT$ EV5 BY HIS CRITICS :O >GUE ?AT ,M>XISM1 ?\< DEAL+ REALI/ICALLY ) CAPITALISM'S UNSAVORY PA/1 IS NO LONG] VALID BECAUSE ( REC5T *ANGES ( ! CAPITALI/ SY/EM4 ,C]TA9 ASPECTS ( ,M>XIAN !ORY - ! CAPITAL CONC5TRATION & C5TRALIZATION PROCESS1 = 9/ANCE - HAVE EV5 BE5 9CORPORAT$ 9TO MOD]N ECONOMIC !ORY BY *ANG+ !IR NEGATIVE CONNOTATIONS TO POSITIVE ONES4 ,ALSO ! NE$ = AN 09DU/RIAL RES]VE >MY0 TO PREV5T WAGES FROM 5CROA*+ UPON PR(IT IS /ILL (T5 /RESS$4 ,AL?\< ,M>X EXP]I5C$ UNEMPLOYM5T AS A SOCIAL FACT & AS A WEAPON )9 CAPITAL-LABOR RELATIONS1 HE BELIEV$ ?AT FULL EMPLOYM5T WAS AS POSSIBLE AS UNEMPLOYM5T4 ,IT ALL DEP5D$ ON ! RATE ( CAPITAL =MATION4 ,! DISPLACEM5T ( HUMAN LABOR BY ! MA*9E WAS :AT CAPITALI/ 9DU/RIALIZATION WAS ALL AB\T1 & PROGRESS WAS MEASUR$ BY IT4 ,9DE$1 ,M>X DID NOT CRITICIZE CAPITALISM SO MU* = :AT IT WAS & = :AT IT C\LD DO AS = ITS LIMITATIONS & ITS BASIC 9ABILITY TO DEVELOP SOCIAL PRODUCTION BEYOND ! NE$ TO MA9TA9 SOCIAL CLASS RELATIONS4 ,) REG>D TO ! PA/1 CAPITALISM WAS PROGRESSIVE2 ) REG>D TO ! FUTURE1 IT BECAME AN OB/ACLE TO ! FULL DEVELOPM5T ( PRODUCTION & !REBY TO ! ELIM9ATION ( ECONOMIC WANTS4 ,M>X ADDRESS$ HIMSELF NOT TO ! CAPITALI/S BUT TO ! WORK]S4 ,9 HIS OP9ION1 !Y ALONE W]E ABLE TO 5D CLASS RELATIONS BY ABOLI%+ !IR [N CLASS POSITION1 ?US CLE>+ ! WAY = A FUR!R UNFOLD+ ( ! SOCIAL =CES ( PRODUCTION4 ,?IS W\LD RESULT 9 FUR!R TE*NOLOGICAL DEVELOPM5T LEAD+ T[>D ! ABOLITION ( HUMAN LABOR OR1 AT ANY RATE1 ( UNWANT$ & DISAGREEABLE HUMAN LABOR4 ,CAPITALISM1 BY BE+ SOCIALLY LIMIT$ ?R\< SPECIFIC CLASS RELATION%IPS1 WAS REG>D$ BY ,M>X AS ECONOMICALLY LIMIT$ & AN OB/ACLE TO TE*NOLOGICAL ADVANCE4 ,ON ?IS LA/ ISSUE1 TOO1 ,M>X APPE>S TO HAVE BE5 WRONG BECAUSE ( ! SO-CALL$ SECOND 9DU/RIAL REVOLUTION1 *>ACT]IZ$ BY ATOMIC P[] & 0AUTOMATION40 ,/RANGELY 5\<1 H[EV]1 ?IS NEW TRIUMPH OV] ,M>X'S GLOOMY PROGNO/ICATIONS IS R>ELY CELEBRAT$ AS A SOLUTION TO CURR5T SOCIAL PROBLEMS4 ,RA!R IT IS SE5 AS ! H>B+] ( NEW & P]HAPS 9SOLUBLE DIFFICULTIES4 ,SUSPICION1 ?AT !RE IS A POSSIBLE 9COMPATIBILITY BETWE5 ! NEW TE*NOLOGY & ! PREVAIL+ SOCIO-ECONOMIC RELATIONS RUNS ?R\< ! GR[+ LIT]ATURE ON AUTOMATION4 ,:ILE MO/ ( ! DIFFICULTIES ( ! CAPITALI/ SY/EM HAVE SEEM+LY BE5 OV]COME1 ! PROBLEM ,M>X WAS LEA/ CONC]N$ )1 I4E41 P]MAN5T & L>GE-SCALE UNEMPLOYM5T1 APPE>S TO BE ! LA/ BUT ALSO ! MO/ IMPORTANT ( ALL CAPITALI/IC CONTRADICTIONS4 ,I,I ,WE >E NOT CONC]N$ H]E ) ! F>-FLUNG RAMIFICATIONS ( CYB]NETICS1 OR ! SCI5CE ( CONTROL1 :I* AFFECTS NATURAL PROCESSES AS WELL AS SOCIAL & TE*NOLOGICAL SY/EMS1 BUT ONLY ) ITS CURR5T APPLICATION TO CAPITALI/ PRODUCTION & DI/RIBUTION4 ,AL?\< ! TYPE ( ECONOMY DEF9ES ! TYPE ( SOCIETY1 WE WILL NOT DEAL ) ALL ! SOCIAL IMPLICATIONS ( CYB]NETICS BUT ONLY ) ! N>R[] RELATION%IP BETWE5 CYB]NETICS & ECONOMICS1 ?AT IS TO SAY1 ) ! POSSIBLE EFFECTS ( ! EM]G+ TE*NOLOGY UPON EXI/+ ECONOMIC & POLITICAL RELATIONS4 ,FROM ITS V]Y 9CEPTION1 ! F\ND] ( CYB]NETICS1 ,NORB]T ,WI5]1 FELT 9CL9$ TO PO9T TO ! SOCIAL PROBLEMS 9VOLV$ 9 ITS APPLICATION TO PRODUCTION PROCESSES4 ,! AUTOMATIC MA*9E1 HE WROTE1 0IS ! PRECISE ECONOMIC EQUIVAL5T ( SLAVE LABOR4 ,ANY LABOR :I* COMPETES ) SLAVE LABOR MU/ ACCEPT ! ECONOMIC CONDITIONS ( SLAVE LABOR4 ,IT IS P]FECTLY CLE> ?AT ?IS WILL PRODUCE AN UNEMPLOYM5T SITUATION 9 COMP>ISON ) :I* ! PRES5T RECESSION & EV5 ! DEPRESSION ( ! ?IRTIES WILL SEEM A PLEASANT JOKE40.<#a.> ,A DECADE LAT]1 CONC]N ) AUTOMATON WAS QUITE G5]AL4 ,!RE W]E SOME1 TO BE SURE1 :O W]E C]TA9 ?AT 0GUID$ BY ELECTRONICS1 P[]$ BY ATOMIC 5]GY1 GE>$ TO ! SMOO?1 EF=TLESS WORK+S ( AUTOMATION1 ! MAGIC C>PET ( \R FREE ECONOMY HEADS = DI/ANT & UNDREAM$ HORIZONS40.<#b.> ,9 REALITY1 H[EV]1 0! ,UNIT$ ,/ATES IS ADVANC+ RAPIDLY 9TO A NATIONAL ECONOMY 9 :I* !RE WILL NOT BE 5\< JOBS ( ! CONV5TIONAL K9D TO GO >\ND4''.<#c.> ,PRESID5T ,K5N$Y HIMSELF DECL>$ ?AT F9D+ WORK = M5 MU/ BE CONSID]$ 0! MAJOR DOME/IC *ALL5GE ( ! ,SIXTIES40.<#d.> ,!RE IS NO DE>? ( DATA ON AUTOMATION4 ,ITS *ANG+ /ATI/ICS APPE> EV]Y:]E1 9 ! DAILY PRESS AS WELL AS 9 LABOR PUBLICATIONS4 ,!SE /ATI/ICS SIMPLY 9DICATE 9CREAS+ PRODUCTIVITY1 PRODUCTION1 & PR(ITABILITY ?R\< ! R$UCTION ( ! LABOR =CE4 ,! IMPACT ( AUTOMATION DIFF]S ) DIFF]5T 9DU/RIES4 ,IT IS P>TICUL>LY NOTICEABLE 9 TEXTILES1 COAL M9+1 OIL1 /EEL1 *EMICALS1 RAILROAD+1 & AUTOMOBILES1 BUT IT AFFECTS 9 9CREAS+ MEASURE ALL L>GE-SCALE PRODUCTION AS WELL AS COMM]CIAL & ORGANIZATIONAL ACTIVITIES & TO SOME EXT5T EV5 AGRICULTURE4 ,IT DOES AWAY ) 0:ITE COLL>0 & 0BLUE COLL>0 JOBS-AT PRES5T MORE ( ! LATT] ?AN ! =M]4 ,BUT ?IS MAY *ANGE 9 TIME4 ,NEV]!LESS1 AUTOMATION IS /ILL 9 ITS 9FANCY & ! EXI/+ NUMB] ( UNEMPLOY$ MAY NOT BE TRACEABLE TO LABOR DISPLACEM5TS ?R\< AUTOMATION1 EV5 ?\< WORK]S CLE>LY LOSE !IR JOBS BECAUSE ( IT4 ,?AT !Y CAN F9D NO O!R EMPLOYM5T MAY BE ! RESULT ( A DECL9+ RATE ( CAPITAL =MATION RA!R ?AN AUTOMATION4 ,AFT] ALL1 !RE W]E SIXTE5 MILLION UNEMPLOY$ 9 ,AM]ICA DUR+ ! ,GREAT ,DEPRESSION4 ,DISPLACEM5T ( LABOR BY MA*9]Y HAS BE5 CONT9U\S & HAS NOT PREV5T$ A /EADY GR[? ( ! WORK =CE4 ,IT IS FE>$1 H[EV]1 ?AT AUTOMATION IS SO DIFF]5T 9 DEGREE FROM PREVI\S TE*NOLOGICAL DEVELOPM5T AS TO AM\NT TO A DIFF]5CE 9 K9D4 ,! SOCIAL PROBLEM IT POSES IS ?\ HAS REC5TLY ATTEMPT$ A PROGNOSIS ( ITS POSSIBLE SOCIAL CONSEQU5CES )9 ! NEXT TWO DECADES4 ,HIS /UDY IS BAS$ ON A NUMB] ( ASSUMPTIONS1 ALL ( :I* IMPLY ?AT TR5DS WILL L>GELY REMA9 :AT !Y >E N[ & :AT !Y HAVE BE5 DUR+ ! LA/ T5 YE>S4 ,MI*AEL EMPLOYS ! T]M 0CYB]NATION0 TO ACC\NT SIMULTANE\SLY = 0AUTOMATION0 & 0COMPUT]S10 :I* USUALLY GO TOGE!R 9 ! APPLICATION ( CYB]NETICS TO PRODUCTION PROCESSES4 ,WE WILL NOT CONC]N \RSELVES ) ALL ! WONDR\S EXI/+ & POT5TIAL CAPABILITIES ( CYB]NATION4 ,A L>GE & GR[+ LIT]ATURE TAKES C>E ( ?AT4 ,WE M]ELY 9DICATE :AT ,MI*AEL CONSID]S TO BE ! ADVANTAGES & PROBLEMS ( CYB]NATION4 ,! ADVANTAGES = BO? BUS9ESS FIRMS & GOV]NM5TS >E PLA9LY TO 0BOO/ \TPUT & CUT CO/S10 9 ORD] TO REMA9 SUCCESSFUL 9 PRIVATE & NATIONAL COMPETITION4 ,:ATEV] O!R ADVANTAGES ,MI*AEL M5TIONS1 SU* AS 0R$UC+ ! MAGNITUDE ( MANAGEM5T'S HUMAN RELATION TASKS2 GREAT] RATIONALIZATION ( MANAG]IAL ACTIVITIES2 FREE+ MANAGEM5T FROM PETTY DI/RACTIONS2 GREAT] FRE$OM 9 LOCAT+ FACILITIES10 & SO =?1 >E ALL ASPECTS (1 OR DIFF]5T EXPRESSIONS =1 ! *EAP5+ ( PRODUCTION4 ,EXPRESS$ 9 ,MI*AEL'S G5TEEL FA%ION3 0,IF ! CRIT]IA >E CONTROL1 UND]/&+1 & PR(ITS1 !RE >E /RONG REASONS :Y GOV]NM5T & BUS9ESS %\LD WANT TO1 & 9DE$ W\LD HAVE TO1 EXP& CYB]NATION AS RAPIDLY AS !Y CAN40.<#f.> ,! ADVANTAGES ( CYB]NATION MAY1 H[EV]1 BE (FSET BY ! PROBLEM ( UNEMPLOYM5T :I* WILL EV5TUALLY AFFECT ALL OCCUPATIONS2 ! UNSKILL$ MORE ?AN ! SKILL$-,NEGRO WORK]S1 CONSEQU5TLY1 MORE ?AN :ITE WORK]S4 ,! PREVI\S RELOCATION FROM PRODUCTION TO S]VICE 9DU/RIES WILL COME TO AN 5D4 0,IF PEOPLE CO/ MORE ?AN MA*9ES-EI!R 9 MONEY OR BECAUSE ( ! MANAG]IAL EF=T 9VOLV$-!RE WILL BE /RONG 9C5TIVES TO REPLACE !M 9 ONE WAY OR ANO!R 9 MO/ S]VICE ACTIVITIES :]E !Y P]=M R\T9E1 PR$EF9$ TASKS40.<#g.> ,AS TE*NOLOGY ALL[S FEW] PEOPLE TO DO MORE WORK1 MANY ( ! 9T]M$I>Y MIDDLE CLASS MANAGEM5T JOBS WILL ALSO DISAPPE>4 ,ALL ?IS :ILE 0! ,UNIT$ ,/ATES WILL NE$ #a#c1#e1 MORE JOBS 9 ! ,SIXTIES M]ELY TO KEEP ABREA/ ( ! EXPECT$ GR[? ( ! LABOR =CE40.<#h.> ,!RE >E1 ( C\RSE1 ANSW]S TO ! PROJECT$ DILEMMA1 SU* AS ! RETRA9+ & UPGRAD+ ( LABOR & ! %ORT5+ ( WORK+ H\RS = ! SAME PAY1 OR EV5 PRICE R$UCTIONS LEAD+ TO A L>G] CONSUM]S' DEM& & !RE) TO 9CREAS$ PRODUCTION & EMPLOYM5T4 ,BUT BECAUSE ALL WORK]S >E AFFECT$ BY CYB]NATION1 ,MI*AEL FEELS ?AT SU* PROPOSALS WILL NOT SOLVE ! PROBLEM4 ,HIS [N SUGGE/ION IS A L>GE PUBLIC WORKS PROGRAM1 = 0AL?\< ! PROPORTION ( WORK]S NE$$ = ANY P>TICUL> TASK WILL BE R$UC$ ?R\< ! USE ( CYB]NATION1 ! TOTAL NUMB] ( TASKS ?AT NE$ TO BE DONE C\LD EQUAL OR EXCE$ ! ABSOLUTE NUMB] ( PEOPLE AVAILABLE TO DO !M40.<#i.> ,HE ?9KS1 H[EV]1 ?AT SU* A POLICY W\LD RUN C\NT] TO ! CAPITALI/ SPIRIT4 ,IT MAY1 !RE=E1 BE SELF-DEFEAT+ = FREE 5T]PRISE TO 5C\RAGE CYB]NATION4 ,:ILE ! CONSEQU5CES ( CYB]NATION MAY 5DANG] ! FREE 5T]PRISE SY/EM1 ! V]Y CONT9UANCE ( ?IS SY/EM COMPELS 9CREAS$ CYB]NATION4 ,MI*AEL SEES ! DILEMMA CLE>LY3 :ILE ! \TLOOK IS UNFAVORABLE ) CYB]NATION1 IT IS JU/ AS BAD )\T IT4 ,HE SEES ONLY A P>TIAL SOLUTION 9 GREAT] GOV]NM5T CONTROL & NATIONAL PLANN+4 ,IDEOLOGY & GOALS MU/ *ANGE1 & A REQUIR$ C5TRALIZATION ( AU?ORITY 0W\LD SEEM TO IMPLY A GOV]N+ ELITE & A POPUL> ACCEPTANCE ( SU* AN ELITE40 ,IF NEWLY EVOLV+ BEHAVIORAL /&>DS DO NOT COMPLEM5T ! CYB]NAT$ FUTURE1 FRU/RATION & PO9TLESSNESS 0MAY WILL EVOKE A W> ( DESP]ATION-O/5SIBLY AGA9/ SOME EXT]NAL 5EMY BUT1 9 FACT1 A W> TO MAKE ! WORLD SAFE = HUMAN BE+S BY DE/ROY+ MO/ ( SOCIETY'S SOPHI/ICAT$ TE*NOLOGICAL BASE40.<#a.> ,OBVI\SLY1 IT W\LD BE A W> 9 :I* ! SOPHI/ICAT$ TE*NOLOGY W\LD S]VE TO DE/ROY MO/ ( MANK9D4 ,I,V 0,NO?+ IS EAT5 AS HOT AS :5 IT IS COOK$10 AS ! SAY+ GOES4 ,AL?\< IT N[ APPE>S ?AT CYB]NATION MAY BE ! 5D ( US1 SOME HOPE REMA9S PRECISELY BECAUSE ( ITS POSSIBLE 9COMPATIBILITY ) ! CAPITALI/ SY/EM4 ,IF ?IS SY/EM W]E TO BE *ANG$1 ! CURSE ( CYB]NATION MI ,M>X'S FETI%I/IC WORLD ( CAPITAL PRODUCTION IS H]E N>R[$ D[N TO ! FETI%ISM ( TE*NOLOGY4 ,BUT BO? TE*NOLOGICAL DEVELOPM5T & CAPITAL =MATION CORRESPOND TO UND]LY+ SOCIAL RELATION%IPS & MAY BE ALT]$ BY *>G+ !SE RELATION%IPS4 ,MOREOV]1 :ILE CYB]NATION 5HANCES CAPITAL DEVELOPM5T IT IS ALSO LIMIT$ BY CAPITAL-LABOR RELATIONS4 ,?IS IS A FAMILI> PH5OM5ON2 MONOPOLIZATION1 = 9/ANCE1 IS BO? AN 9/RUM5T ( CAPITAL EXPANSION & ( CAPITAL CONTRACTION & ! DRIVE = PR(ITS R$UCES ! PR(ITABILITY ( ANY GIV5 AM\NT ( CAPITAL4 ,)\T GO+ 9TO !SE RA!R 9TRICATE MATT]S IT %\LD BE CLE> ?AT ANY PROGNOSIS ) REG>D TO ! CYB]NATION PROCESS MU/1 FIR/ ( ALL1 RAISE ! QUE/ION AS TO H[ F> ?IS PROCESS IS SUPPORTABLE BY ! EXI/+ ECONOMY4 ,:AT IS FEASIBLE TE*NICALLY MAY NOT BE ECONOMICALLY2 & :AT MAY BE FEASIBLE ECONOMICALLY MAY NOT BE SOCIALLY4 ,BUT ?IS QUE/ION IS H>DLY EV] RAIS$1 APP>5TLY ON ! ASSUMPTION ?AT CAPITALISM HAS NO 9H]5T LIMITS4 ,SU* AN ASSUMPTION IS JU/IFI$ BY PA/ DEVELOPM5TS4 ,EV5 ,L59 SAID ?AT UNLESS IT IS OV]?R[N BY POLITICAL MEANS1 !RE IS ALWAYS A WAY \T = CAPITALISM4 ,BUT ?IS WAS BE=E CYB]NATION & ! HYDROG5 BOMB4 ,AMONG V>I\S REASONS = DECL>+ CAPITALISM ! EXCLUSIVE 0OP5 SOCIETY0 ) AN UNLIMIT$ RANGE ( POSSIBILITIES WAS ! LACK ( RELEVANT 9=MATION4 ,?IS LACK /ILL P]SI/S BUT NO LONG] TO ! EXT5T ( TOTAL IGNORANCE4 ,SOME ECONOMI/S BEG9 TO SEE SOCIETY & ITS ECONOMY 9 FLUX & 9 REAL1 9/EAD ( 9 SYMBOLIC1 T]MS4 ,AT ! SAME TIME ?AT ,MI*AEL'S REPORT ON CYB]NATION APPE>$ ,SIMON ,KUZNETS'S ,CAPITAL 9 ! ,AM]ICAN ,ECONOMY.<#a#b.> WAS PUBLI%$4 ,?IS WORK IS ( 9T]E/ H]E BECAUSE ( ,KUZNETS'S ATTEMPT TO ASSAY PROSPECTS = ! NEXT #be YE>S ON ! BASIS ( PA/ TR5DS 9 POPULATION1 NATIONAL PRODUCT1 & 9 ! =MATION & F9ANC+ ( CAPITAL4 ,:]E ,MI*AEL'S EMPHASIS IS ON TE*NOLOGY1 ,KUZNETS'S IS ON ECONOMICS4 ,! LATT] DI/+UI%ES BETWE5 POT5TIAL & ACTUAL TE*NOLOGICAL *ANGE4 ,AL?\< ! 0CONCEPT ( POT5TIAL TE*NOLOGICAL *ANGE IS DIFFICULT TO DEF9E PRECISELY1 LET ALONE MEASURE10 ,KUZNETS WRITES1 0IT IS EXTREMELY USEFUL1 = IT PO9TS TO ! FACT ?AT ( ! L>GE FL[ ( TE*NOLOGICAL *ANGE (F]$1 AS IT W]E1 TO SOCIETY1 ONLY A P>T IS EMBODI$ 9 ! PRODUCTIVE /RUCTURE1 MA9LY BECAUSE ( LIMITATIONS ( CAPITAL & ( 5TREPR5EURIAL ABILITY40.<#a#c.> ,KUZNETS ?9KS1 H[EV]1 ?AT ! NEXT ?REE DECADES WILL WITNESS AN ACCEL]ATION ( ! RATE ( TE*NOLOGICAL *ANGE MA9LY BECAUSE ( A QUICK5+ 9 ! PACE ( SCI5TIFIC RESE>*4 ,IT SEEMS C]TA91 HE SAYS1 0?AT ! DEVELOPM5T ( NONMILIT>Y APPLICATIONS TO NUCLE> PHYSICS1 ( ELECTRONICS 9 AUTOMATION & COMMUNICATIONS WILL HAVE AN IMM5SE IMPACT UPON ! PRODUCTIVE SY/EM40.<#a#d.> ,ALL ?IS WILL GIVE MOM5TUM TO ! DEM& = CAPITAL FUNDS & ,KUZNETS ?9KS IT NOT UNLIKELY ?AT ! NEW TE*NOLOGY-AT ANY RATE 9ITIALLY-WILL REQUIRE CAPITAL 9 AN AM\NT ?AT CAN BE BR\G] P>T ( TOTAL PRODUCTION = NEW MAT]IAL CAPITAL EQUIPM5T & LEAVE A CORRESPOND+LY SMALL] P>T = IMM$IATE UTILIZATION & CONSUMPTION4 ,SO IT HAS ALWAYS BE5 9 ! ASC]TA9ABLE PA/ UND] CONDITIONS ( RAPID CAPITAL =MATION4 ,& EV5 ?\< ! MAT]IAL REQUIREM5TS ( CAPITAL =MATION MAY BE MORE =MIDABLE = ! SECOND 9DU/RIAL REVOLUTION ?AN !Y HAVE BE5 = ! FIR/1 !Y MAY BE ATTA9ABLE1 NEV]!LESS4 ,! MORE SO AS ! NEW TE*NOLOGY MAY1 EV5TUALLY1 DEM& A SMALL] AM\NT ( CAPITAL TO YIELD A GREAT] PRODUCT ?AN HAS BE5 TRUE = ! 0CONV5TIONAL0 TE*NOLOGY4 ,BUT NEW CAPITAL 9VE/M5TS MU/ BE F9ANC$4 ,! QUE/ION IS1 !N1 0:E!R ! SAV+S PATT]NS 9 ! PRIVATE SECTOR .<( ! ECONOMY.> SUGGE/ SAV+S PROPORTIONS ?AT WILL MAT* ! PROSPECTIVE DEM& = CAPITAL40 ,! CONC]N IS ) ! PRIVATE SECTOR ( ! ECONOMY ALONE1 = 0! GOV]NM5T SECTOR IS NOT LIKELY TO HAVE NET SAV+S 9 ! LONG T]M PROSPECT4 ,9DE$1 IT MAY BE =C$ TO DRAW UPON ! SAV+S ( ! PRIVATE SECTOR40.<#a#e.> ,BECAUSE ( AN ACTUAL DECL9E ( ! PRIVATE SECTOR'S SAV+S PROP5SITY1 ,KUZNETS ?9KS ?AT ! PREVI\SLY EXP]I5C$ 0PRESSURE ( ! DEM& = GOODS UPON ! SUPPLY ( SAV+S WILL P]SI/40 ,HE SUGGE/S1 CAUTI\SLY1 ?AT 0DUR+ ! #a#i#d#h-#a#i#e#g DECADE A COMB9ATION ( HI<-LEVEL DEM& = CONSUM]S GOODS & CONT9U$ HI< LEVELS ( GOV]NM5T DRAFTS = CURR5T CONSUMPTION MIY PRESSURES40.<#a#f.> ,AGA9/ ?IS BACKGR\ND1 & 9 VIEW ( AN EXPECT$ GR[? ( ! NONPRODUCTIVE POPULATION1 RIS+ GOV]NM5T EXP5DITURES1 & CONT9U$ HI< LEVELS ( CONSUMPTION1 ,KUZNETS FE>S ?AT ! SUPPLY ( VOLUNT>Y SAV+S MAY NOT BE ADEQUATE TO ! DEM&1 = :I* REASON 09FLATION>Y PRESSURES MAY WELL CONT9UE1 ) ! RESULT ?AT P>T ( ! SAV+S NE$$ = CAPITAL =MATION & GOV]NM5T CONSUMPTION WILL BE EXTRACT$ ?R\< ?IS P>TICUL> ME*ANISM40.<#a#g.> ,?IS 0P>TICUL> ME*ANISM0 R$UCES TOTAL SOCIAL CONSUM+ P[] TO LESS ?AN :AT IT MIY PRESSURE4 ,! FACT ( 9FLATION ITSELF1 H[EV]1 9DICATES REAL DIFFICULTIES 9 RAIS+ ! RATE ( CAPITAL =MATION1 :I* MAY-AT LEA/ TO SOME EXT5T->RE/ ! CYB]NATION PROCESS4 ,V ,:ILE A LACK ( 9VE/M5T CAPITAL MAY HAMP] CYB]NATION1 ! SAME LACK IS ALSO ITS RAISON D'ETRE4 ,! EXPECT$ RISE ( PR(ITABILITY IS SUPPOS$ TO LEAD TO AN EXT5SION ( PRODUCTION SUFFICI5TLY L>GE TO COMP5SATE = ! TE*NOLOGICAL DISPLACEM5T ( LABOR4 ,?IS IS ! IDEA BEH9D ! >GUM5T ?AT ALL TE*NOLOGICAL ADVANCEM5T1 SOON] OR LAT]1 CREATES NEW & ADDITIONAL WORK OPPORTUNITIES4 ,IT IS USUALLY ILLU/RAT$ ) REF]5CE TO DEF9ITE 5T]PRISES & P>TICUL> SITUATIONS AS1 = EXAMPLE1 BY ,RIT*IE ,CALD]1 :O PO9T$ \T ?AT 09 ,FRANCE ! /ATE-CONTROLL$ ,R5AULT ,COMPANY WAS ABLE TO UND]TAKE1 AFT] ! W>1 ! MO/ 9T5SIVE AUTOMATION ( ANY AUTOMOBILE FACTORY 9 ,EUROPE10 9 CONSEQU5CE ( :I* 0?REE TIMES AS MANY WORK]S >E EMPLOY$ N[ AS !RE W]E BE=E ! 9TRODUCTION ( AUTOMATION40 ,CALD] ?9KS ?AT ?IS IS 0A GOOD EXAMPLE ( ! REP]CUSSIVE EFFECTS ( MOD]N TE*NOLOGY40.<#a#h.> ,= ! ,R5AULT ,COMPANY ?IS IS NO D\BT TRUE1 AT ANY RATE = ! TIME BE+4 ,& IT MAY WELL BE TRUE = MANY1 OR EV5 ALL 5T]PRISES1 9 ! EXP&+ ,WE/ ,EUROPEAN ECONOMY :I* HAS BE5 EXP]I5C+ ! SAME PROCESS ( GR[? ?AT-= A V>IETY ( REASONS-OCCURR$ 9 ,AM]ICA A FEW DECADES E>LI]4 ,BUT1 :ILE ! RATE ( CAPITAL =MATION IS N[ HI<] 9 ,WE/]N ,EUROPE ?AN 9 ,AM]ICA1 !RE IS NO GU>ANTEE ?AT IT WILL REMA9 SO 9DEF9ITELY4 ,JUDG+ BY PA/ EXP]I5CES1 PROSP]ITY MAKES ROOM = DEPRESSION1 & JUDG+ BY MORE REC5T EXP]I5CES1 P]IODS ( EXPANSION ALT]NATE ) P]IODS ( /AGNATION1 I4E41 P]IODS *>ACT]IZ$ BY 9SUFFICI5T CAPITAL =MATION4 ,OBVI\SLY1 ! EFFECTS ( AUTOMATION WILL BE DIFF]5T UND] CONDITIONS ( CAPITAL EXPANSION ?AN UND] CONDITIONS ( CAPITAL /AGNATION4 ,! PRES5T ,AM]ICAN SITUATION MAY BE1 !RE=E1 JU/ AS MU* 0AN EXAMPLE ( ! REP]CUSSIVE EFFECTS ( MOD]N TE*NOLOGY0 AS ,CALD]'S EXP]I5CE ) ! ,R5AULT ,COMPANY1 OR EV5 ) ! :OLE ( ! ,WE/ ,EUROPEAN ECONOMY4 ,AS LONG AS PRODUCTION EXP&S & M>KETS EXT5D1 9CREAS$ AUTOMATION MAY BE ACCOMPANI$ BY FULL EMPLOYM5T4 ,AUTOMATION MAY ALSO LEAD TO L>G] PRODUCTION & NEW M>KETS DESPITE GR[+ UNEMPLOYM5T4 ,! APPLICATION ( AUTOMATION MAY ALSO REQUIRE ! ELIM9ATION ( :AT IS CALL$ 0EXCESSIVE DEM&10 I4E41 WAGES SUPPORT$ BY FULL EMPLOYM5T :I* RE/RICT ! PR(ITABILITY ( CAPITAL4 ,IT ALL DEP5DS ON ! P>TICUL> SITUATION 9 :I* AN 5T]PRISE1 A C\NTRY1 OR A COMB9ATION ( NATIONS F9D !MSELVES4 ,= ?IS IS A COMPETITIVE WORLD ) *ANG+ OPPORTUNITIES4 ,PRES5TLY1 ,WE/]N ,EUROPE AUTOMATES ) A RIS+1 & ! ,UNIT$ ,/ATES ) A DECL9+1 LABOR =CE4 ,9 !ORY1 ?IS PICTURE MAY BE REV]S$ :5 ,AM]ICA >RIVES AT A HI<] RATE ( CAPITAL =MATION & ,EUROPE REA*ES ! LIMITS ( H] PR(ITABLE CAPITAL EXPANSION4 ,OR1 :AT IS MORE LIKELY1 H]E1 TOO1 ,WE/]N ,EUROPE MAY COME TO EMULATE ! ,UNIT$ ,/ATES & CYB]NATE ITSELF 9TO 9CREAS+ UNEMPLOYM5T4 ,AT ANY RATE1 WE MAY AS WELL /ICK TO ! ,AM]ICAN SC5E1 = AS LONG AS ! ,WE/ ,EUROPEAN ECONOMY DOES NOT BASICALLY DIFF] FROM ! ,AM]ICAN1 IT IS B\ND TO %>E ! LATT]'S DIFFICULTIES ) REG>D TO CYB]NATION & CAPITAL =MATION4 ,?IS IS NOT TRUE = ! ,EA/]N P[] BLOC1 OR = ECONOMICALLY UND]DEVELOP$ NATIONS4 ,AL?\< IT HAS BE5 ASS]T$ FROM TIME TO TIME ?AT BACKW>D C\NTRIES 0HAVE ! ADVANTAGE ( BE+ ABLE TO ADAPT ! LATE/ EQUIPM5T )\T HAV+ TO SCRAP EXI/+ EQUIPM5T & )\T BE+ H&ICAPP$ BY ! EXI/5CE ( OBSOLETE BUILD+S10.<#a#i.> SU* AN ADVANTAGE DOES NOT REALLY EXI/4 ,! SL[LY 9CREAS+ 9DU/RIALIZATION ( UND]DEVELOP$ C\NTRIES RA!R WID5S ! PRODUCTIVITY GAP BETWE5 0RI*0 & 0POOR0 C\NTRIES = ! V]Y REASON ?AT DEVELOP$ NATIONS 5JOY ! ADVANTAGES ( AUTOMATION4 ,IT IS TRUE1 ( C\RSE1 ?AT AUTOMATION F9DS APPLICATION ALSO 9 UND]DEVELOP$ C\NTRIES-9 SOME EXTRACTIVE 9DU/RIES1 = 9/ANCE-BUT H]E IT SUPPORTS =EIGN CAPITAL RA!R ?AN NATIVE DEVELOPM5T4 ,TE*NOLOGICAL DEVELOPM5T 9 UND]DEVELOP$ NATIONS PRESUPPOSES BASIC SOCIAL *ANGES :I* >E ONLY N[ BEG9N+ TO DET]M9E !IR POLITICAL MOVEM5TS4 ,9 ! DEVELOP$ NATIONS ( ! ,EA/]N P[] BLOC1 AS 9 CAPITALI/ NATIONS G5]ALLY1 AUTOMATION IS LIMIT$ BY ! AVAILABILITY ( ! CAPITAL NECESS>Y TO 9/ALL IT4 ,9 DI/9CTION TO ! COMPETITIVE ,WE/]N ECONOMIES1 H[EV]1 ! C5TRALIZ$ ECONOMIES ( ,RUSSIA & H] SATELLITES DO NOT SEEM TO FE> ! CONSEQU5CES ( CYB]NATION4 ,!IR PRODUCTIVITY & TOTAL PRODUCTION >E /ILL BEL[ ?OSE ( ,WE/]N NATIONS1 & AUTOMATION1 TO ! DEGREE POSSIBLE UND] !SE CONDITIONS1 C\LD NOT LEAD TO L>GE-SCALE UNEMPLOYM5T4 ,!IR PROBLEM IS RA!R H[ TO DECREASE HUMAN LABOR BY A MORE PRODUCTIVE CAPITAL /RUCTURE4 ,R\EAS ( APPLICATION ( CYB]NETICS4 ,BUT :ILE 9 ! COMPETITIVE ECONOMIES 0PLANN+0 IMPLIES 0C\NT]-PLANN+10 9 ! C5TRALIZ$ ECONOMIES PLANN+ MAY BE UNIT>Y1 NATION-WIDE1 & ALL-COMPREH5SIVE4 ,?IS IS :Y MANY ( ! ,WE/]N ADVOCATES ( ABUNDANCE BY WAY ( CYB]NATION EMPHASIZE ! NE$ = NATIONAL PLANN+ ( BO? PRODUCTION & DI/RIBUTION4 ,BUT BY ?IS TOK51 ! ,WE/]N ECONOMIES W\LD CEASE BE+ CAPITALI/ ECONOMIES 9 ! TRADITIONAL S5SE4 ,V,I ,! ,AM]ICAN ECONOMY IS ?\DS >E HI<] ?AN ANY:]E ELSE4 ,!Y >E HI<] BECAUSE ( GREAT] PRODUCTIVITY4 ,COMP>$ ) SC>CITY ECONOMIES1 IT IS AN ECONOMY ( 0ABUNDANCE0-BUT ONLY 9 A RELATIVE1 NOT 9 AN ABSOLUTE S5SE-=1 G5]ALLY1 EV5 9 ,AM]ICA NO ONE'S NE$S >E SATIAT$4 ,EV]YBODY WI%ES = MORE1 IF NOT = NECESSITIES1 !N = LUXURIES4 ,! RI*] ! PEOPLE1 ! GREAT] !IR WANTS1 = SECURITY LIES ONLY 9 ACCUMULATION4 ,! ONLY REAL DEF5SE ( WELL-BE+ IS GREAT] WELL-BE+2 TO /AY AFFLU5T1 AFFLU5CY MU/ BE CON/ANTLY 9CREAS$4 ,BUT H]E WE SPEAK ONLY ( ! CAPITALI/ CLASS2 = ! MAJORITY ( ! POPULATION1 APP>5T LUXURIES HAVE BECOME NECESSITIES1 & = A L>GE M9ORITY MANY NECESSITIES >E /ILL LUXURIES4 ,?AT ?IS ECONOMY ( 0ABUNDANCE0 IS SIMULTANE\SLY AN ECONOMY ( SC>CITY IS 9DICAT$ BY ! FRANTIC EF=TS TO RAISE ! PR(ITABILITY ( CAPITAL & TO 9CREASE ! RATE ( ECONOMIC GR[?4 ,BUT :AT IS SC>CE 9 VIEW ( ! ALWAYS L>G] NATIONAL PRODUCT8 ,! ANSW] IS OBVI\S :5 ! ECONOMY IS RECOGNIZ$ = :AT IT IS-A VEHICLE = PRODUCTION ( PR(IT4 ,PRODUCTION ( COMMODITIES IS M]ELY ! NECESS>Y M$IUM = PRODUCTION ( PR(ITS & ! CONT9UATION ( ?IS PROCESS REQUIRES ! ACCUMULATION ( CAPITAL4 ,SUCCESS OR FAILURE CANNOT BE MEASUR$ 9 T]MS ( AN ABUNDANCE OR A LACK ( COMMODITIES2 !Y >E REVEAL$ BY ! RATE ( CAPITAL =MATION :I* 9DICATES ! RATE ( PR(ITABILITY4 ,MO/ CRITICS & WELL-WI%]S ( ! 0AFFLU5T SOCIETY0 T5D TO DISREG>D ! NATURE ( CAPITALISM1 I4E41 ! PRODUCTION ( CAPITAL1 EV5 :5 !Y RECOGNIZE ITS PR(IT MOTIVE4 ,!Y CONSID] ! PR(IT 9C5TIVE AN 9/RUM5T ( PRODUCTION :I* HAS NO O!R 5D ?AN CONSUMPTION4 ,AS ?IS 5D CAN ALSO BE S]V$ BY DIRECT GOV]NM5T DECISIONS AFFECT+ ! PRODUCTION PROCESS1 !Y ?9K ?AT BO? !SE 9/RUM5TALITIES COMPLEM5T ONE ANO!R4 ,& SO IT SEEMS %E] /UPIDITY TO LIVE 9 A SOCIETY ( ABUNDANCE AS IF IT W]E AN ECONOMY ( SC>CITY4 ,IT IS1 ( C\RSE1 BEYOND ALL REASON & !RE=E DIFFICULT TO UND]/& ?AT :ILE SURPLUSES ( ALL K9DS >E ROTT+ AWAY = WANT ( USE1 ! ECONOMIC EMPHASIS %\LD /ILL BE ON MORE PRODUCTION BY WAY ( CYB]NATION4 ,IT APPE>S EQUALLY IRRATIONAL ?AT ! 0HORN ( PL5TY0 IS NOT UTILIZ$ TO LIB]ATE PEOPLE FROM OV]WORK1 OR TO SUPPLY ?OSE :O CAN NO LONG] F9D WORK ) DEC5T LIV+ CONDITIONS4 ,9 A CAPITALI/ ECONOMY ( ! ,RUSSIAN TYPE1 DIRECT DECISIONS 7SUPPOS$LY AFFECT+ ! :OLE ( SOCIETY7 >E MADE ) REG>D TO ! RATE ( EXPANSION & ! *>ACT] ( ! MAT]IAL CAPITAL /RUCTURE4 ,DECISIONS >E BAS$ ON EXP]I5CE & IF !Y GO WRONG !Y >E RECTIFI$ BY NEW EXP]I5CE4 ,TEMPO & EXT5T ( 9DU/RIAL AUTOMATION >E DET]M9$ BY ! AVAILABLE ACCUMULATION FUND & ! REPLACEM5T REQUIREM5TS ( ! EXI/+ PRODUCTIVE APP>ATUS4 ,?IS FUND IS KN[N 9 A G5]AL WAY2 IT CAN BE MADE SMALL] OR L>G] 9 ACCORDANCE ) ! DECISIONS AFFECT+ ! CONSUMPTION FUND4 ,AL?\< EXPRESS$ 9 MONEY T]MS1 BEH9D ! MONET>Y QUANTITIES >E ! >RANG$ REAL RELATIONS ( PRODUCTION1 ACCUMULATION1 & CONSUMPTION4 ,9 !ORY1 & EXCLUD+ NATURAL & POLITICAL CATA/ROPHES1 ! 9TRODUCTION & EXT5SION ( CYB]NATION C\LD BE AN ORD]LY PROCESS4 ,PRODUCTION C\LD BE 9CREAS$ TO ! PO9T ( ABUNDANCE & LABOR TIME C\LD BE %ORT5$1 OR BO? PROCESSES C\LD BE ATT5D$ TO SIMULTANE\SLY & ?US SL[$ D[N4 ,9 PRACTICE1 ?IS IS NOT POSSIBLE GIV5 ! FACT ?AT ,RUSSIA IS P>T ( ! WORLD ECONOMY & COMPETES ) O!R NATIONS /RIV+ = POLITICAL & ECONOMIC SUPREMACY4 ,BUT EV5 ?\< PRODUCTION & CONSUMPTION CANNOT BE GE>$ TO ACTUAL SOCIAL NE$S EXCLUSIVELY1 !Y >E NONE!LESS SUBJECT TO AN OV]-ALL C5TRALIZ$ CONTROL :I* ALSO EXT5DS OV] ! MODIFICATIONS NECESSITAT$ BY NATIONAL COMPETITION4 ,9 BRIEF1 ?\< SUBJECT TO ! VICISSITUDES ( WORLD POLITICS :I* MAY ALT] OR %ATT] ALL PLANS1 ,RUSSIA REMA9S A /ATE-CONTROLL$ ECONOMY 9 SO F> AS ! 9T]NAL SC5E IS NOT AFFECT$ BY EXT]NAL OCCURR5CES4 ,?IS IS ANALOG\S TO ! S+LE 5T]PRISE'S /RICT CAPITALI/ RATIONALITY )9 ! AN>*IC LAISSEZ-FAIRE SY/EM4 _/ ,IT IS DIFF]5T ) ! 0MIX$ ECONOMY0 ( ! ,UNIT$ ,/ATES4 ,RESPONSIBILITY = ! /ATE ( SOCIETY LIES 9 ! H&S ( GOV]NM5T2 PRIVATE 5T]PRISE IS RESPONSIBLE ONLY TO ITSELF1 I4E41 TO ! PR(ITABILITY ( ! CAPITAL 9VE/$ 9 IT4 ,!RE WAS A TIME :5 ! GOV]NM5T'S RESPONSIBILITIES W]E OV]:ELM+LY POLITICAL & ECONOMIC ONLY 9 ! S5SE ( ITS SUPPORT ( PRIVATE CAPITAL4 ,BUT N[ IT IS ! MA9 FUNCTION ( GOV]NM5T TO SECURE ECONOMIC & SOCIAL /ABILITY4 ,?IS IMPLIES 9T]V5TIONS 9 ! ECONOMY TO C\NT]ACT ! CYCLICAL MOVEM5T FROM PROSP]ITY TO DEPRESSION & TO AVOID L>GE-SCALE UNEMPLOYM5T ?R\< GOV]NM5T EXP5DITURES ON WELF>E1 PUBLIC WORKS1 SUBSIDIES1 >MAM5TS1 & ! EXPANSION ( GOV]NM5T ITSELF4 ,! ECONOMIC ROLE ( GOV]NM5T DIVIDES ! :OLE ( ! ECONOMY 9TO A 0PUBLIC SECTOR0 & A 0PRIVATE SECTOR40 ,TO SPEAK ( ! ,AM]ICAN ECONOMY AS A TWO-SECTOR ECONOMY IS TO SPEAK 9 AB/RACT T]MS4 ,9 REALITY1 IT IS JU/ ONE ECONOMY 9 :I* GOV]NM5T 9T]V5ES ) FISCAL & MONET>Y MEANS4 ,AL?\< ! GOV]NM5T [NS MU* REAL E/ATE1 A CONSID]ABLE AM\NT ( CAPITAL EQUIPM5T1 & EMPLOYS A GREAT NUMB] ( WORK]S 9 ALL K9DS ( OCCUPATIONS1 IT DOES NOT COMPETE ) PRIVATE CAPITAL4 ,ITS CONSID]ATIONS MAY BE ECONOMIC BUT !Y >E NOT B\ND TO ! PR9CIPLE ( PR(ITABILITY4 ,ITS 5T]PRISES DO NOT 5D UP 9 BANKRUPTCIES EV5 ?\< !Y MAY BE DISCONT9U$ :5 SUP]FLU\S OR = LACK ( EFFICI5CY4 ,NO MATT] H[ SELF SUPPORT+1 OR EV5 PR(ITABLE1 SOME GOV]NM5T UND]TAK+S >E1 GOV]NM5T /ILL REQUIRES AN 9CREAS+LY L>G] PORTION ( ! PRIVATELY PRODUC$ NATIONAL PRODUCT4 ,! PRIVATE SECTOR DIFF]S FROM ! PUBLIC SECTOR 9 ?AT ! =M] IS PR(ITABLE & EXP&S ON ITS [N ACCORD :ILE ! LATT] IS NON-PR(ITABLE & EXP&S AT ! EXP5SE ( ! PRIVATE SECTOR4 ,:5 ! PRIVATE SECTOR GR[S FA/] ?AN ! PUBLIC SECTOR1 ! PR(ITABILITY ( PRIVATE CAPITAL MAY NOT BE AFFECT$4 ,IT IS O!RWISE :5 ! PUBLIC SECTOR EXP]I5CES MORE RAPID GR[?4 ,IT CAN BE >GU$ ?AT ! GOV]NM5T 5T]S ! ECONOMIC SPH]E ONLY :5 PRIVATE CAPITAL BEG9S TO SLACK5 & = ?AT REASON ITS PR(ITABILITY REMA9S UNAFFECT$1 = BUS9ESS W\LD NOT BE ANY BETT] )\T GOV]NM5T 9T]V5TIONS4 ,?IS MAY WELL BE SO4 ,H[EV]1 ?\< GOV]NM5T 9T]F]5CE CONSI/S 9 PUTT+ IDLE RES\RCES TO WORK1 ! FUNDS = ?AT 5D >E !MSELVES EXTRACT$ FROM ! PRIVATE SECTOR BY WAY ( 9FLATION1 TAXATION1 BORR[+S1 & DEFICIT-F9ANC+ :I* 9CREASES ! NATIONAL DEBT4 ,! GREAT] NATIONAL PRODUCT BR\G] BUT SMALL] PR(ITS ON ! EXI/+ PRIVATE CAPITAL1 = IT IS ?IS CAPITAL :I* MU/ YIELD ! TAXES NECESS>Y TO COV] GOV]NM5T CREAT$ DEM& & TO F9ANCE 9T]E/ ON ! NATIONAL DEBT4 ,)9 REC5T DECADES ! 9CREAS$ VOLUME ( GOV]NM5T EXP5DITURES 9 ,AM]ICA HAS 9VOLV$ A RIS+ RATIO ( TAXES TO NATIONAL PRODUCT1 & ! 9CREASE ( ! F$]AL DEBT FROM @s#a#f BILLION AT ! 5D ( #aic TO @s#b#i#g4#g BILLION AT ! BEG9N+ ( #a#i#f#b4 ,?US F>1 H[EV]1 ! EXP&+ ROLE ( GOV]NM5T1 :OSE TAX TAKE IS N[ AB\T A QU>T] ( ! NATIONAL PRODUCT1 HAS NOT L$ TO A DECEL]ATION ( ! RATE ( OV]ALL ECONOMIC GR[?4 ,BUT NEI!R HAS ?IS RATE BE5 ACCEL]AT$1 EV5 ?\< ACCEL]ATION IS A PRE-CONDITION = ! MA9T5ANCE ( A GIV5 RATE ( PR(IT4 ,/AGNATION & ! P]SI/5CE ( 9FLATION PO9T TO ! DIFFICULTY ( SATISFY+ BO? PR(ITABLE CAPITAL =MATION & ! GR[+ NE$S ( GOV]NM5T4 ,S9CE #aiee !RE HAS BE5 NO SIGNIFICANT EXPANSION ( CAPITAL1 BUT BECAUSE GOV]NM5T EXP5DITURES HAVE ALSO REMA9$ /ATIC1 ! 5SU+ DECL9E ( PR(ITABILITY C\LD BE COV]$ UP BY FALSE1 9FLATION>Y GA9S4 ,LACK ( PR(ITABILITY CAN ONLY BE OV]COME BY AN 9CREASE 9 PRODUCTIVITY4 ,A M]E 9CREASE 9 PRODUCTION WILL NOT DO4 ,AM]ICAN 9DU/RY AS A :OLE PRODUCES CLOSE TO #b P] C5T BEL[ CAPACITY4 ,IT C\LD 9CREASE PRODUCTION BY ALMO/ ONE-FIF? )\T ADDITIONAL CAPITAL EQUIPM5T & )\T EXHAU/+ ! LABOR SUPPLY4 ,TO ?AT EXT5T IT C\LD AT ONCE DECREASE ! GOV]NM5T %>E ( ! TOTAL NATIONAL PRODUCT4 ,BUT ?IS UNUS$ CAPACITY IS CONSID]$ OBSOLETE BECAUSE IT IS NOT COMPETITIVE & !RE=E NOT PR(ITABLE4 ,V,I,I ,AUTOMATION 9 A COMPETITIVE ECONOMY MEANS UNEMPLOYM5T IF ,MI*AEL'S PROGNOSIS IS RIKETS L>GE 5\< TO 9CREASE ! NUMB] ( EMPLOY$ DESPITE AUTOMATION1 AS HAS BE5 TRUE = SOME 9DU/RIES & EV5 = SOME NATIONS4 ,BUT ) 9DU/RIALIZATION FO/]$ TO SOME EXT5T ALMO/ EV]Y:]E1 ) ! RETURN ( ,EUROPE'S COMPETITIVE ABILITY1 & ) ! RELATIVE ECONOMIC ISOLATION ( ! ,EA/]N P[] BLOC1 IT CANNOT REALLY BE EXPECT$ ?AT GREAT] PRODUCTIVITY ( ,AM]ICAN 9DU/RY BY WAY ( AUTOMATION WILL LEAD TO SIGNIFICANT 5L>GEM5TS ( M>KETS4 ,AUTOMATION WILL GO ON & UNEMPLOYM5T WILL GR[ ?\< P]HAPS AT A SL[] RATE ?AN ! POSSIBLE RATE ( TE*NOLOGICAL *ANGE4 ,! RESPONSIBILITIES ( GOV]NM5T WILL GR[ CORRESPOND+LY4 ,9 #a#i#f#a1 TAX COLLECTIONS BY ALL GOV]NM5TS 9 ! ,UNIT$ ,/ATES-F$]AL1 /ATE1 & LOCAL-AM\NT$ TO @s#a#d#c4#f BILLION1 OR #b#g4#f P] C5T ( TOTAL NATIONAL PRODUCT4 ,GOV]NM5T EXP5DITURES1 9 ! SAME YE>1 AM\NT$ TO @s#a#d#i4#h BILLION1 ( :I* @s#d#a4#b BILLION W5T = UNEMPLOYM5T & SOCIAL WELF>E SP5D+4 ,A D\BL+ ( UNEMPLOYM5T ) ITS ACCOMPANIM5T ( G5]AL MIS]Y C\LD R\MAM5TS1 OR = ANY O!R DESIR$ & POLITICALLY FEASIBLE PURPOSE C\LD SUDD5LY BE D\BL$4 ,TO BE SURE1 AUTOMATION W\LD ALSO *EAP5 ! PRODUCTS FALL+ TO GOV]NM5T & TO ?AT EXT5T AGA9 EASE ! BURD5 ( PRIVATE CAPITAL4 ,YET ?IS MAY BE (FSET BY A FA/] EXT5SION ( GOV]NM5T DEM&S ON ! PRIVATE SECTOR ( ! ECONOMY4 ,BUT ?IS1 BY ITSELF1 WILL RA!R HA/5 ?AN H9D] ! AUTOMATION PROCESS4 ,AS ON ALL PREVI\S OCCASIONS ( 0NATIONAL EM]G5CIES10 ! REQUIR$ 9CREASE 9 PRODUCTION & PRODUCTIVITY WILL BE BR\Y IMPROVEM5TS & 5L>GEM5TS ( ! PRODUCTIVE APP>ATUS4 ,= ! ONLY REAL LIMITS ( PRODUCTION >E ALWAYS ! ACTUALLY EXI/+ PRODUCTIVE RES\RCES4 ,BY DISREG>D+ ! PR(ITABILITY ( EXI/+ CAPITAL-IF ONLY TEMPOR>ILY-IT IS ALWAYS POSSIBLE TO 5L>GE PRODUCTION BEYOND ?AT LEVEL :I* SUITS PRIVATE CAPITAL BE/1 I4E41 :I* IS AT ANY P>TICUL> TIME ! MO/ PR(ITABLE4 ,H[EV]1 ON ITS [N ACCORD1 TOO1 PRIVATE CAPITAL WILL ALWAYS TRY TO 9CREASE ITS PRODUCTIVITY 9 SE>* = EXTRA PR(ITS1 OR JU/ TO MA9TA9 A GIV5 PR(ITABILITY4 ,NO MATT] :AT ! SOCIAL CONSEQU5CES ( CYB]NATION1 IF IT HELPS ! S+LE FIRM OR CORPORATION1 IT WILL BE UTILIZ$4 ,A DECL9+ RATE ( SAV+S WILL NOT /OP ! CYB]NATION PROCESS ( CORPORATIONS ) SUFFICI5T RES]VES TO F9ANCE !IR TE*NOLOGICAL 9NOVATIONS4 ,:ILE ! VALUE ( !IR CAPITAL MAY REMA9 ! SAME1 !IR PRODUCTIVITY WILL HAVE BE5 5HANC$4 ,BUT IF ?IS1 9 TURN1 DOES NOT LEAD TO ! 5L>GEM5T ( CAPITAL1 ! PROCESS HAS NOT BE5 PRODUCTIVE 9 A CAPITALI/ S5SE1 BECAUSE CAPITAL MU/ LEAD1 VIA ! PRODUCTION PROCESS1 TO EV5 L>G] CAPITAL4 ,!RE MU/ BE NET 9VE/M5TS TO SPEAK ( CAPITAL =MATION4 ,)\T NET 9VE/M5TS1 I4E41 9VE/M5TS OV] & ABOVE CAPITAL REPLACEM5T ?R\< USE & OBSOLESC5CE1 PRODUCTION HAS 9CREAS$ AT ! EXP5SE ( ACCUMULATION4 ,P]MAN5TLY UNDI/RIBUT$ PR(ITS >E NO PR(ITS & PRODUCTION )\T ACCUMULATION HAS NOT PRODUC$ CAPITAL4 ,! ABS5CE OR L[ RATE ( NET CAPITAL 9VE/M5TS1 AL?\< NOT NECESS>ILY HALT+ ! 9CREASE ( PRODUCTION & PRODUCTIVITY1 9VOLVES ! DISPLACEM5T ( LABOR :I* C\LD HAVE BE5 AVOID$1 AT LEA/ TO SOME EXT5T1 BY A RAPID CAPITAL =MATION 9 CONJUNCTION ) CYB]NATION4 ,IT CAN BE SAID1 ( C\RSE1 ?AT UNDI/RIBUT$ PR(ITS >E A SIGN ( SUP]-PR(ITS & LEAVE ! %>EHOLD]S' P]SONAL 9COMES UNIMPAIR$4 ,?IS IS L>GELY TRUE1 AS 9DICAT$ BY ! EXI/+ 0AFFLU5CY0 9 ! SPH]E ( CONSUMPTION4 ,H[EV]1 ! APP>5T 0SUP]-PR(ITS0 >E SU* ONLY BY VIRTUE ( GOV]NM5T CREAT$ DEM&4 ,!Y M]ELY ILLU/RATE ! FACT ?AT GOV]NM5T FAVORS BIG BUS9ESS4 ,SUBSIDIES ?R\< GOV]NM5T CONTRACTS & A HI<] PRODUCTIVITY COMB9$ ) PRICE /ABILITY OR EV5 PRICE 9CREASES ALL[ = RES]VES ( UNDI/RIBUT$ PR(ITS ?AT F9D !IR WAY 9TO MORE AUTOMATION4 ,EV5 SO1 ! FACT ?AT !RE IS NOT A SUFFICI5T RATE ( NET 9VE/M5TS %[S ?AT ?IS IS DONE AT ! EXP5SE ( LESS PRIVILEG$ 5T]PRISES & ( SOCIETY AS A :OLE4 ,ALL 5T]PRISES1 :E!R SMALL OR BIG1 CLAMOR = L[] TAXES & HI<] DEPRECIATION QUOTAS TO 9CREASE !IR PRODUCTIVITY & COMPETITIVE ABILITY ?R\< TE*NOLOGICAL IMPROVEM5TS4 ,AUTOMATION SPE$S UP OBSOLESC5CE & SMALL] BUS9ESSES1 UNABLE TO 9TRODUCE AUTOMATIC MA*9]Y QUICKLY 5\<1 FALL BY ! WAYSIDE4 ,?US CYB]NATION IS AT ! SAME TIME A CAPITAL CONC5TRATION PROCESS-OR1 RA!R1 IT ACC5TUATES ! CONC5TRATION PROCESS 9H]5T 9 CAPITAL COMPETITION4 ,CAPITAL CONC5TRATION ITSELF DEM&S1 & ALL[S =1 FUR!R EXT5SIONS ( AUTOMATION4 ,%ORT ( AN ALWAYS 9CREAS+ RATE ( CAPITAL =MATION1 UNEMPLOYM5T MU/ GR[4 ,AS ! PROBABILITY ( SU* A RATE IS EXTREMELY L[1 ! 9CREASE ( PR(ITABILITY BY WAY ( CYB]NATION MAY WELL BE NULLIFI$1 OR AT ANY RATE SIGNIFICANTLY DIM9I%$1 BY ! SIMULTANE\S & UNAVOIDABLE 9CREASE ( GOV]NM5T EXP5DITURES TO COPE ) CYB]NATION'S SOCIAL CONSEQU5CES4 ,?IS MAY NOT BE SO1 H[EV]1 IF ! SOCIAL CONDITIONS ( ! NE> FUTURE DISC\RAGE BO? ! GR[? ( CYB]NATION & ?AT ( ! 0PUBLIC SECTOR0 ( ! ECONOMY-9 O!R WORDS1 IF SOCIETY1 BY & L>GE1 0FREEZES0 EXI/+ SOCIAL CONDITIONS4 ,BUT TO DO SO NECESSITATES A C5TRALIZ$ CONTROL OV] ! :OLE ( ! ECONOMY & ALL ITS V>I\S ASPECTS :I* ! GOV]NM5T DOES NOT POSSESS4 ,IF IT HAD ?IS CONTROL1 IT W\LD NO LONG] PRESIDE OV] A FREE-5T]PRISE ECONOMY4 ,ASIDE FROM 9T]NAL DIFFICULTIES ( A /ATIC SOCIETY1 ITS EXT]NAL RELATIONS PRECLUDE ! MA9T5ANCE ( ! ECONOMIC /ATUS QUO4 ,= AUTOMATION1 IT IS SAID1 MU/ OV]COME =EIGN WAGE ADVANTAGES BY 5HANC+ ,AM]ICA'S PRODUCTIVITY4 ,BUT ,AM]ICA MU/ COMPETE NOT ONLY 9 ! ECONOMIC SPH]E BUT ALSO 9 ! MILIT>Y1 & H]E WEAPONS PRODUCTION ALREADY DEP5DS TO A V]Y L>GE DEGREE ON AUTOMATION TE*NOLOGY4 ' ,/ILL1 ! PROCESS & ! CONSEQU5CES ( CYB]NATION MAY NOT_/BE SO DRAMATIC AS ,MI*AEL 5VISIONS4 ,MANY 5T]PRISES ?AT W\LD LIKE TO AUTOMATE MAY NOT BE ABLE TO DO SO )\T NECESS>ILY CEAS+ TO EXI/4 ,SUBSIDIES MAY BE EXT5D$ TO !SE BUS9ESSES SU* AS HAVE BE5 GRANT$ TO SECTIONS ( AGRICULTURE4 ,?IS IS NOT LESS LIKELY ?AN1 OR DIFF]5T 9 PR9CIPLE FROM1 SU/A9+ ! UNEMPLOY$ \T ( CURR5T PRODUCTION4 ,9 ?IS WAY1 P>T ( PRIVATE 5T]PRISE 79 ITS TE*NOLOGICALLY BACKW>D =M7 MAY BECOME A P>T ( ! 0PUBLIC SECTOR0 ( ! ECONOMY4 ,?IS HAS LONG BE5 TRUE = SECTIONS ( BIG BUS9ESS4 ,UNLESS ! LATT]'S PRIVILEGES1 SU* AS GOV]NM5T CONTRACTS1 TAX EXEMPTIONS1 & EXTRAORD9>Y DEPRECIATION *>GES >E CUT BACK1 ! %R9K+ PR(ITABLE SECTOR ( ! ECONOMY WILL HAVE TO GIVE UP A /ILL L>G] %>E ( ITS PR(ITS TO ! PUBLIC SECTOR4 ,?IS W\LD REA* ITS 0LOGICAL0 5D :5 ! DEM&S ( GOV]NM5T EXCE$ ! PR(IT %>+ CAPACITY ( PRIVATE 5T]PRISE4 ,! ACTUAL C\RSE ( DEVELOPM5TS1 H[EV]1 DET]M9$ AS IT IS BY ! 9T]ACTION ( DIV]SE & CONTR>Y 9T]E/S1 IS R>ELY1 IF EV]1 0LOGICAL40 ,IT MAY BE BO? LOGICALLY & ECONOMICALLY POSSIBLE TO HAVE A HIISE SOCIAL MOVEM5TS TO *ANGE ?IS SITUATION1 EI!R BY ALT]+ ! NATURE ( SOCIETY1 OR BY V>Y+ ! RELATION%IP BETWE5 PRODUCTION & EMPLOYM5T4 ,SIMIL>LY1 ! ACC5TUATION ( CAPITAL CONC5TRATION BY WAY ( CYB]NATION W\LD MO/ LIKELY BR+ POLITICAL =CES 9TO PLAY :I* MIRE/ ?IS DEVELOPM5T4 ,AGA9/ REAL NECESSITIES1 FETI%I/IC ATTITUDES T[>D ! PRODUCTION SY/EM & ITS TE*NOLOGY WILL LOSE !IR SWAY1 & PEOPLE WILL TRY TO *ANGE ! SOCIAL /RUCTURE RA!R ?AN ACCOMMODATE !MSELVES TO IT 9DEF9ITELY4 ,9 ! 5D1 ! QUE/ION ( CYB]NATION 9 ITS DEGREE ( APPLICATION WILL BE RESOLV$ BY POLITICAL ACTIONS REG>DLESS ( :AT1 FROM ! ECONOMIC OR TE*NOLOGICAL PO9T ( VIEW1 IS 0LOGICAL40 ,BUT EV5 ON PURELY ECONOMIC GR\NDS1 CYB]NATION F9DS ITS LIMITS :]E IT BEG9S TO CONTRADICT ! PR(ITABILITY ( CAPITAL4 ,ITS FULL DEVELOPM5T W\LD BE A V]Y LONG PROCESS1 AT ANY RATE1 AS IT REQUIRES ! DISPLACEM5T ( ! :OLE EXI/+ PRODUCTION EQUIPM5T4 ,TO ?R[ \T ! :OLE ( CAPITAL BAS$ ON AN OLD TE*NOLOGY IS TO ?R[ \T ! CONGEAL$ LABOR ( G5]ATIONS NECESS>Y = CURR5T PRODUCTION4 ,TO CREATE ! CAPITAL ( A RADICALLY NEW TE*NOLOGY ALSO REQUIRES ! WORK ( G5]ATIONS4 ,CYB]NATION CAN ONLY BE APPLI$ 9 PIECEMEAL FA%ION REG>DLESS ( ! NATURE ( SOCIETY1 BUT 9 CAPITALISM IT IS D\BLY H9D]$ BECAUSE IT CAN BE APPLI$ ONLY 9S(> AS IT SAFEGU>DS & PROMOTES ! GR[? ( EXI/+ CAPITAL4 ,9 SOME 9DU/RIES1 *EMICALS = 9/ANCE1 AUTOMATION HAS RAIS$ CAPITAL EQUIPM5T P] PRODUCTION WORK] FIVE & EV5 T5 FOLD4 ,EV5 IF NOT ALL 9DU/RIES >E ABLE TO AUTOMATE TO ! SAME EXT5T1 CAPITAL 9VE/M5T P] PRODUCTION WORK] IS B\ND TO RISE & IT WILL BE ?IS 5L>G$ CAPITAL ON :I* PR(ITS WILL BE MEASUR$4 ,IF !Y >E NOT EQUIVAL5T TO ! NEW CAPITAL /RUCTURE1 !RE IS NO 9C5TIVE = FUR!R AUTOMATION4 ,?IS WILL NOT /OP SPECIFIC 9DU/RIES & CORPORATIONS FROM RAIS+ !IR PRODUCTIVITY TO GA9 COMPETITIVE ADVANTAGES1 BUT AS !IR PR(ITABILITY1 TOO1 IS F9ALLY DET]M9$ BY ?AT ( SOCIETY AS A :OLE1 !IR COMPETITIVE ADVANTAGES MAY /ILL NOT 9SURE !IR PR(ITABILITY4 ,TAK+ PA/ DEVELOPM5TS 9TO CONSID]ATION1 & JUDG+ PRES5T CONDITIONS REALI/ICALLY1 ! FUTURE ( CYB]NATION SEEMS NOT AT ALL PROMIS+ EXCEPT1 P]HAPS1 = SELECT$ 9DU/RIES1 P>TICUL>LY ?OSE 5GAG$ 9 ! PRODUCTION ( >MAM5TS4 ,:]E 5TIRELY NEW 9/ALLATIONS >E REQUIR$ ?AT 9VOLVE ! APPLICATION ( ! NEW SCI5CES ( NUCLE> PHYSICS1 ELECTRONICS1 & CYB]NETICS1 !SE 9/ALLATIONS MAY1 FROM ! V]Y />T1 & REG>DLESS ( CO/1 EXHIBIT ! FULL MEAN+ ( CYB]NATION4 ,9DE$1 IT HAS BE5 SAID ?AT 0?OSE MIRACUL\S MA*9ES 9 :I* CYB]NETICS C\LD DEVELOP ALL ITS RES\RCES SEEM TO BE USABLE ONLY AS 5G9ES ( DEA?40.<#b.> ,V,I,I,I ,ONE ME?OD ( DEAL+ ) 9CREAS$ PRODUCTIVITY BY WAY ( CYB]NATION W\LD BE TO CUT ! NUMB] ( H\RS ( WORK & PROVIDE PEOPLE ) MORE LEISURE TIME4 ,ALMO/ UNI=MLY1 H[EV]1 ?IS ME?OD IS QUE/ION$ OR TOTALLY REJECT$ NOT BECAUSE ( ITS OPPOSITION TO ! CAPITALI/ ME*ANISM1 BUT BECAUSE SOCIETY HAS 0FAIL$ TO DEVELOP MEAN+FUL LEISURE40 ,BOR$OM IS CONSID]$ A V]Y S]I\S & EV5 DANG]\S PROBLEM BECAUSE 0IT /ILL REMA9S-TRUE ?AT ! HAPPY MAN IS V]Y (T5 ! ONE :O HAS 9SUFFICI5T TIME TO WORRY AB\T :E!R HE IS HAPPY OR NOT40.<#b#a.> ,ALL SORTS ( CRIMES & DEL9QU5CIES >E ATTRIBUT$ TO 9CREAS$ LEISURE1 :I*1 !N1 MU/ FIR/ BE 0ORGANIZ$0 BY COMPET5T AU?ORITIES BE=E IT CAN BE GRANT$4 ,?IS SILLY & 9S9C]E TALK CAN BE DISMISS$ AT ONCE4 ,! LEISURE CLASS HAS ALWAYS F\ND ! LEISURE ( ! L[] CLASSES OBNOXI\S & DANG]\S TO ITS [N LEISURE4 ,LOOK+ AT ! WOND]S ( ! FIR/ 9DU/RIAL REVOLUTION1 ,DELACROIX MUS$ AB\T ! 0POOR ABUS$ PEOPLE1 .<:O.> WILL NOT F9D HAPP9ESS 9 ! DISAPPE>ANCE ( LABOR4 ,LOOK AT !SE IDL]S CONDEMN$ TO DRAG ! BURD5 ( !IR DAYS & NOT KN[+ :AT TO DO ) !IR TIME1 :I* ! MA*9ES CUT 9TO /ILL FUR!R40.<#b#b.> ,YET1 LEISURE IS PRECISELY :AT ! MAJORITY ( PEOPLE NE$ MO/ & HAVE ! LEA/ (-?AT IS1 LEISURE )\T WANTS4 ,! LEISURE ( ! />V+1 OR ! NE$Y1 IS NO LEISURE AT ALL BUT A REL5TLESS ACTIVITY AIM$ AT /AY+ ALIVE OR IMPROV+ !IR SITUATION4 ,)\T GREAT] LEISURE !RE CAN BE NO BETT]M5T ( ! HUMAN CONDITION4 ,?IS :OLE QUE/ION CANNOT EV5 >ISE UND] PREVAIL+ CONDITIONS4 ,AS AN EXCEPTION TO ! RULE1 & AID$ BY SPECIAL CIRCUM/ANCES1 ONE OR ANO!R LABOR+ GR\P MAY SUCCE$ 9 CUTT+ D[N ITS WORK+ TIME )\T DIM9I%+ ITS 9COME4 ,BUT TO CUT D[N WORK+ H\RS G5]ALLY & MA9TA9 ! SAME WAGE BILL W\LD TURN CYB]NATION 9TO A S5SELESS AFFAIR AS0 F> AS ! CAPITALI/S >E CONC]N$4 ,! PO9T ( CYB]NATION IS PRECISELY TO R$UCE WAGE CO/S RELATIVE TO OV]ALL CO/S ( ! 0FACTORS ( PRODUCTION0 & TO REC\P ! HI<] CAPITAL CO/S BY GREAT] PRODUCTIVITY4 ,TO BE SURE1 REAL WAGES HAVE 9CREAS$ & WORK+ H\RS HAVE BE5 CUT1 BUT ALWAYS AT A RATE BEL[ ?AT ( ! 9CREAS+ PRODUCTIVITY4 ,O!RWISE !RE W\LD HAVE BE5 NO CAPITAL =MATION4 ,!ORETICALLY1 !RE IS NO REASON :Y ?IS PROCESS %\LD NOT CONT9UE BY WAY ( CYB]NATION4 ,?AT IT DOES NOT DO SO1 9 PRACTICE1 IS MANIFE/$ BY ! L[ RATE ( CAPITAL =MATION & ! FACT ?AT ! DECL9E ( ! LABOR =CE IS NOT ONLY RELATIVE TO ! MASS ( CAPITAL BUT ALSO ABSOLUTE4 ,IT CAN BE >GU$1 ( C\RSE1 ?AT !RE IS NO LONG] A NE$ = EXT5SIVE CAPITAL =MATION & ?AT M]E REPLACEM5T & MOD]NIZATION ( ! EXI/+ PRODUCTIVE APP>ATUS SUFFICES TO SATISFY ALL SOCIAL NE$S4 ,ANY 9CREASE 9 PRODUCTIVITY C\LD !N IMM$IATELY BE TRANSLAT$ 9TO HI<] WAGES1 %ORT] H\RS1 OR BO?4 ,:ILE ?IS IS POSSIBLE1 IT IS NOT POSSIBLE )9 ! CAPITALI/ SY/EM1 & ?OSE :O S]I\SLY PROPOSE ?IS SOLUTION MU/ BE PREP>$ TO *ANGE ! SY/EM4 ,! CAPITALI/ 0SOLUTION0 TO ! PROBLEM ( CYB]NATION IS TO BE F\ND NOT 9 HI<] WAGES & A %ORT] WORK WEEK = ! LABOR+ POPULATION BUT 9 HI<] PR(ITABILITY EXPRESS$ 9 9CREAS$ CAPITAL4 ,IF ALL !SE ?+S CO9CIDE1 SO MU* ! BETT]2 IF NOT1 CAPITAL WILL TRY TO SECURE ITS PR(ITABILITY AT ! EXP5SE ( LABOR4 ,EA* 5TREPR5EUR1 OR CORPORATION1 EMPLOYS ! M9IMUM ( LABOR RELATIVE TO CAPITAL 9VE/M5T2 EA*1 ( C\RSE1 TRIES TO 9CREASE ?IS M9IMUM BY A CORRESPOND+LY L>G] 9VE/M5T4 ,!Y >E 9T]E/$-ECONOMICALLY SPEAK+-NOT 9 A L>G] OR SMALL] LABOR =CE BUT 9 ?AT LABOR =CE :I* PROVES MO/ PR(ITABLE4 ,!Y >E NOT1 & CANNOT1 BE CONC]N$ ) ! NATIONAL LABOR =CE2 ! UNEMPLOY$ >E ! GOV]NM5T'S RESPONSIBILITY1 AL?\< IT CAN SU/A9 !M ONLY ) FUNDS EXTRACT$ FROM ! :OLE ( SOCIETY4 ,TO CONTRIBUTE LEA/ TO ?IS FUND IS ?US ANO!R OBJECTIVE ( ! 5TREPR5EUR OR ! CORPORATION4 ,BECAUSE SOCIETY-) RESPECT TO PRODUCTION-IS COMPOS$ ( NUM]\S 9DEP5D5TLY OP]AT+ & COMPET+ 5T]PRISES1 EA* FOLL[+ ! DICTATES ( PR(ITABILITY1 !RE IS NO WAY ( %>+ ! AVAILABLE WORK BETWE5 ! TOTAL LABOR =CE4 ,!RE WILL BE OV]WORK = SOME1 UNEMPLOYM5T = O!RS4 ,NOT ONLY ! EMPLOY]S BUT ! MORE =TUNATE WORK]S1 TOO1 WILL 9SI/ ON WORK+ H\RS YIELD+ WAGES ADEQUATE TO !IR ACCU/OM$ MODE ( LIV+4 ,9/EAD ( %ORT] H\RS !RE WILL BE GR[+ UNEMPLOYM5T1 & ! CO/S ( UNEMPLOYM5T MU/ BE PAID BY ! EMPLOY$4 ,=1 9 ! 0LA/ ANALYSIS10 ! TOTAL SOCIAL PRODUCT IS DIVID$ BETWE5 ! [N]S ( CAPITAL & ! PRODUCTIVE POPULATION1 NO MATT] H[ ! [N]S1 OR CONTROLL]S1 ( CAPITAL R$IVIDE1 OR >E =C$ TO R$IVIDE1 !IR %>E = PURPOSES ( ACCUMULATION & ! SU/5ANCE ( ! NONPRODUCTIVE POPULATION4 ,:AT FALLS TO ! UNEMPLOY$ MU/ BE SUBTRACT$ FROM ! TOTAL %>E FALL+ TO CAPITAL1 & :AT FALLS TO ! UNEMPLOY$ CANNOT BE GIV5 TO ! EMPLOY$1 !REBY RE/RICT+1 TO ?AT EXT5T1 ANY POSSIBLE WAGE 9CREASES4 ,:ILE WAGES DO NOT RISE SIGNIFICANTLY UND] CONDITIONS ( GR[+ UNEMPLOYM5T1 SOCIAL PRESSURES & RIS+ PRODUCTIVITY MAY PREV5T !M FROM FALL+4 ,IF !Y C\LD BE L[]$ UND] CONDITIONS ( RIS+ PRODUCTIVITY1 ! PR(ITABILITY ( CAPITAL C\LD EXP& AT A FA/] RATE-PROVID$1 ( C\RSE1 ?AT M>KETS W\LD GR[ SIMULTANE\SLY1 :I* IS NOT NECESS>ILY ! CASE4 ,ALL ?AT ?IS IMPLIES-FROM ! VIEWPO9T ( SOCIETY AS A :OLE-IS ?AT LESS IS CONSUM$ & MORE IS 0SAV$10 I4E41 CAPITAL ACCUMULATES4 ,TO *ANNEL 9CREAS$ PRODUCTION VIA 9CREAS$ PRODUCTIVITY 9TO GOV]NM5T CREAT$ DEM& SU* AS >MAM5TS & SPACE PROGRAMS W\LD HAVE AN OPPOSITE EFFECT1 AS IT W\LD 9CREASE 0CONSUMPTION0 AT ! EXP5SE ( 0SAV+S40 ,?IS IS NOT 0CONSUMPTION0 9 ! ORD9>Y S5SE1 ( C\RSE1 BUT IT HAS ! SAME EFFECT NEV]!LESS4 ,! GOV]NM5T - BE+ A GOV]NM5T ( PRIVATE 5T]PRISE - 9 ORD] NOT TO DE/ROY ! M>KETABILITY ( PRIVATE PRODUCTION ANY FA/] ?AN HAS BE5 DONE ALREADY1 PREF]S TO 0CONSUME0 ! 9CREAS$ PRODUCTION 9 ! =M ( WA/E1 RATIONALIZ$ AS 0NATIONAL DEF5SE0 OR 0SCI5TIFIC EXPLORATION40 ,LIV+ /&>DS ALREADY REA*$ >E DIFFICULT TO UNDO4 ,EXCEPT UND] CONDITIONS ( ACTUAL W>F>E1 ANY G5]AL ATTEMPT TO R$UCE 9COMES TO A PREVI\SLY EXI/+ LEVEL MAY LEAD TO SOCIAL /RIFE1 :I*1 9 TURN1 MAY NULLIFY ANY GA9S MADE 9 ?IS DIRECTION4 ,MOREOV]1 TODAY'S S5SITIVE ECONOMIC CONDITIONS1 ! DISLOCATIONS ( 9DU/RIAL PRODUCTION ASSOCIAT$ ) A DECISIVE %IFT FROM CONSUMPTION GOODS TO CAPITAL GOODS MAY BE MORE DETRIM5TAL TO SOCIAL /ABILITY ?AN CAPITAL /AGNATION4 ,?IS IS ONE REASON = *OOS+ ! MORE SUBTLE ME?OD ( GRADUAL 9FLATION TO R$UCE CONSUMPTION 9 ! ORD9>Y S5SE 9 ORD] TO 0CONSUME0 MORE 9 ! EXTRAORD9>Y S5SE1 & YET SECURE ! PR(ITABILITY ( PRIVATE CAPITAL4 ,9 SUMM>Y1 IT MAY BE SAID ?AT AN EXT5SIVE CYB]NATION ( PRODUCTION SEEMS UNLIKELY = ! V]Y REASON :I* MAKES IT SO ATTRACTIVE TO CAPITAL1 I4E41 ! PREVAIL+ 9SUFFICI5CY ( PR(ITABILITY & ! CONSEQU5T L[ RATE ( ECONOMIC GR[?4 ,BUT EV5 A VA/ 9CREASE ( CYB]NATION W\LD LEAD NOT TO AN 9CREASE ( CONSUMPTION-TO G5]AL ABUNDANCE-BUT TO AN 9CREASE 9 WA/E PRODUCTION1 ! MIS]Y ( UNEMPLOYM5T1 & ! SL[ BUT 9EVITABLE TRANS=MATION ( ! 0MIX$ ECONOMY40 9TO A /ATE CAPITALI/ SY/EM4 ,MEAN:ILE1 JU/ AS UND]DEVELOP$ C\NTRIES LIVE 9 ANXIETY BECAUSE !Y >E NEI!R ABLE TO MANAGE UND] ! OLD SEMI-FEUDAL CONDITIONS NOR CAPABLE ( 5T]+ 9TO CAPITALI/ 9DU/RIALIZATION1 SO DEVELOP$ CAPITALI/ NATIONS1 TOO1 LIVE 9 ANXIETY1 UNABLE TO MANAGE UND] !IR SY/EM ( PRODUCTION & 9CAPABLE ( *ANG+ !IR SOCIAL /RUCTURE TO ! EXT5T NECESS>Y = A FULL UNFOLD+ ( ! SOCIAL =CES ( PRODUCTION & ! 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