Dr. Chris Wright
The capitalist mode of production does not permit a socially efficient allocation of resources. Resource allocation is determined by the twin structural imperatives of having purchasing power (on the demand side) and of chasing profit (on the supply side). If one has a need but lacks the money to back up that need, as for example the billion children worldwide living in poverty do, one’s need will not be met by the market. Conversely, investors will pursue only those projects that have the potential to make a profit. For example, many areas of rural America were still without electricity in the early 1930s because investors had judged that the meager profits to be made did not justify the costs of supplying electricity to these regions; hence the New Deal’s Rural Electrification Administration and the cooperatives that sprang up to supply electricity. Broadly speaking, the dynamic between capital and wage-labor, as well as that between millions of atomized units of capital each seeking profit at the expense of every other, makes for a very unstable and crisis-prone economy. Capital’s interests lie in paying the worker as little as possible and in preventing him from exercising control over the process of production, while the worker wants to be paid as much as possible and to exercise greater control over production. This simple structural antagonism is the basis for the whole history of the labor movement, the continual confrontations, the unions and union-busting, the private armies deployed to break up strikes, the government suppression of labor parties, the revolutionary social movements, the constant and pervasive stream of business propaganda, and the periodic bursts of cooperative economic activity among the ranks of labor. At the same time, the vicissitudes of the capitalist economy leave many people unemployed at any given time, unable to find work because their skills and needs are not valued or because of insufficient investment in their geographical or
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