The Pen is mightier than the sword, but the Pen must sometimes move the sword against corruption if the corrupt are not moved by the pen.. An idea without an implementer is useless. "The Rulers do not carry the sword in vain"Rom 13:4

Wednesday, February 11, 2015

Why "Dr" Richard Wolff is a $2 dollar shop economist. (Opinion)

By that I mean...his theories about with about 2 bucks!

His insane ideas about worker run enteprises, are just ....... words fail me. But let other speak. (later)

His primary vision seems to be a Marxist Utopia where workers take control of enterprises and make all the decisions about how the company is run, where the profits go and so on. (not to mention a 4 day working week  with the 5th day for navel gazing-planning)

The presupposition seems to be that once the workers run the show.... the operation will be safe, secure and have staying power because the 'workers' now run it...

Well.. one thing Woolff and his pack of marxist dogs seems blissfully unaware of is this.. "Global economy, market forces".

CASE STUDY   Fagor Electrodomésticos (Part of Mondragon) SPAIN.  (washing machines, domestic appliances)

The 'Good' news:

Nestled in the green hillsides of the town of the same name, in the Basque country, Mondragon has won many awards and much praise as a shining alternative to shareholder capitalism and a bastion of workplace democracy during its six decades of history.

The 'Bad' news.

Now, one of the group’s key principles—of solidarity among its 110 constituent co-ops—has found its limit. Fagor has lost money for five years and has run up debts of €850m ($1.2 billion). Its sales have fallen sharply because of Spain’s property bust and low-cost competition from Asia. Even pay cuts of over 20% have not been enough to turn it around. Its factories all ceased production three weeks ago

Sooo......these workers in their industrial paradise were willing to accept a pay cut of 20%.... o....k..... did that help?
Nope.  The only thing that would have saved their jobs would be a pay cut to the levels of Chinese workers who now make the same products that are imported to Spain. Oops!

THE REALLY BAD NEWS!.... Richard Wolff is still wandering around like a little kid who got his favorite toy for Christmas proclaiming.."Oh look....I've got a Phd in Economics... look.. all these wingnut lefties in America think I'm the best thing since sliced bread and I get paid a heck of a lot of money to spread this stupidity that only a moron of marginal intelligence would believe"

THE WORSE NEWS.... is that there are a lot of wingnuts and bozo's out there who really think his ideas will work, some of them sadly, reside in the White House.

UNBELIEVABLE....this story just keeps on giving!

In the past, losses in one part of the group have been covered by the others, but this time Fagor’s pleas for a €170m lifeline were rejected, even though the Spanish and Basque governments were ready to step in as part of the rescue. Eroski, another co-operative in the Mondragon group and one of Spain’s largest retailers, is also struggling in the face of stiff competition, and it and two other co-ops vetoed Fagor’s plan.

THEY TURN ON EACH OTHER IN A TRIBAL FRENZY OF SURVIVAL.  Just have a look at the underlined section above....so much for 'worker solidarity'....this is primal mate!

This was a blow to Sergio Treviño, Fagor’s boss since April. He had planned to move the bulk of production to Poland and to turn Fagor into an ordinary company with outside shareholders. 

Its Polish unit has now filed for creditor protection and the French unit will follow, triggering cross-default clauses in Spain. As we went to press Fagor looked likely to file for bankruptcy imminently.


Besides their jobs, workers stand to lose the money they had invested in the co-op if it is liquidated. 

Awwwww...poor workers!  How much sympathy did they have, or do American Unionists have for their capitalist bosses who lose their shirts ????

MORE CHEERY NEWS of Affirmation of Wolff's whackiness....(sic)

Britain’s even older co-operative movement (founded in 1844 and nominally owned by its customers rather than its employees) is undergoing a similarly harsh encounter with economic realities. Its banking arm, hit by huge bad debts after taking over another mutual lender, is having to bring in American hedge funds as outside shareholders, because its parent movement was unable to rescue it alone.

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