Prices, wages, production and money in economic war | Luis Britto Garcia


The economy is full of mysteries. Prices for food, clothing, rents, housing, medicine, public services, transportation, fuel increase dramatically, interest rates rise, and everything is presented as natural and even positive, since it is not said that prices rise, but rather " they free themselves, ”as if redeemed from tyrannical slavery. "Liberations" or price rises are mentioned as inevitable phenomena, independent of the will of man. Producers or distributors are rarely said to raise prices in a conscious, calculated, premeditated manner. No, prices "rise" by themselves, as endowed with their own will, capable of subjecting producers, distributors, consumers and governments to their whims.


The only thing that does not rise, or does so in a negligible proportion, is that without which the goods mentioned would not exist: work, which produces everything, and whose price is wages. Wages are not "released." They do not inevitably "rise up" on their own, as if of their own free will. The salary increase is not presented as "natural": those who manage the economy treat it as risky, catastrophic, dangerous, inflationary, irresponsible, poop, taboo. Why? Because the less the capitalist pays for the work that creates everything and the more he charges for the goods that this labor produces, the greater his profit. But the abysmal difference between the price of labor and that of the goods created by it can also be increased by means of weapons of economic terrorism to destabilize governments and countries. Due to the right of legitimate defense, the most legitimate of rights, society and the State cannot remain passive, and must act energetically to counteract them. But in order to thwart aggressions, it is necessary to know their causes and their methods correctly. Such is the theme of Pasqualina Curcio's new book The General Theory of Prices, Wages, Production and Money in Economic Warfare (Editorial Trinchera, 2021) that clears the cloud of fables, myths and interested road tales that are invoked to hide the interests involved in the most vital issues of today.


They tell us that consumers, producers and the State intervene in the formation of prices, engaged in the subtle game of the market. Pasqualina points out that in this game sometimes a fourth agent, political and external, intervenes, who does not respect rules and uses all legal and illegal means, not to produce goods, but to unbalance and destabilize their production and distribution. The reader will recall incidents not so distant in time: programmed shortages on grocery shelves and supermarkets while discovering hidden deposits of hoarded supplies that rot, shortages of paper money while locating warehouses full of banknotes stolen from circulation, brutal international blockade applied to prevent Venezuela from selling its products or acquiring those it needs. In addition to them, the manipulation of the value of money.


This last element is of crucial importance. Pasqualina points out that, “in Venezuela, the bolivar has depreciated 3,1 trillion percent from 2013 to date (April 2021), an inexplicable figure with the economic theories that we have. In 2013 we gave 8,69 BsF / US $ while now we must give BsF / US $ ”. This aggression is devastating. A school with followers among the employers' union and even the official one maintains that the loss of value of the currency is due to "excess money" or the ghost of "inorganic money." The facts speak for themselves. Everyone knows (perhaps even the monetarists themselves have noticed) that in Venezuela money in circulation has not increased 3,1 trillion percent since 2021. On the contrary, it has almost disappeared, and public and private investment has contracted with he. An excess of money that does not exist cannot cause hyperinflation.


The consequence of the conflict between the percentage of profit of the capitalist that increases and that of the remuneration of work that stagnates is the enormous deterioration of the real wage. Pasqualina points out that “In 2014, 36% of GDP was allocated to salary remuneration, while 31% to the net operating surplus, that is, to the capitalist. Regarding what was distributed to the State, to later be redistributed, the percentage did not exceed 13%. For the year 2017, the amount of production to wage earners decreased, it became 18% while that of the bourgeoisie increased, which appropriated 50% of what was produced. For its part, the State received 9%. In other words, the product that was previously distributed to wage earners, in 2017 ended up in the hands of the bourgeoisie ”. Monetarists and Monetarist Funds maintain that wages should not be increased, because this would be “inflationary”. They do not explain why the increase in capitalists' profits would not be “inflationary”, nor would the indexation of bank loans, nor the possible recovery of oil income, nor the long-awaited foreign investments that will not pay taxes or respect labor rights. In this logic something or everything fails.


In short: the solution is to index the economy. If a single of the economic variables, the value of money, is altered for no real reason and only due to the effects of the combined action of external web pages and the complicity with them of a certain private sector, it can be done that the salary and the rest magnitudes follow that variation. As Pasqualina points out: “The proposal for indexing the economy is nothing more than adjusting salaries, the budget for income and expenses, and all the monetary expressions of the economy in the same proportion in which the prices of the rest of the merchandise changed. ”. All the factors of the economy will remain the same and with the same relationship between them, only expressed with more or less zeros. And without homicidal aggression against work, that is, wages, and without its contraction in turn destructively contracting production and consumption.


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