Productivity, wages, profits, and exchange rates in an era of globalization

Vol. 22 No. 1 (2002)

Jan-Mar / 2002
Published January 1, 2002
PDF-English
PDF-English

How to Cite

Elsenhans, Hartmut. 2002. “Productivity, Wages, Profits, and Exchange Rates in an Era of Globalization”. Brazilian Journal of Political Economy 22 (1):55-81. https://doi.org/10.1590/0101-31572002-1276.

Productivity, wages, profits, and exchange rates in an era of globalization

Hartmut Elsenhans
Professor do Departamento de Economia da Universidade Federal Fluminense.
Brazilian Journal of Political Economy, Vol. 22 No. 1 (2002), Jan-Mar / 2002, Pages 55-81

Abstract

World-wide devaluation races lead to the globalization of rent instead of profit and autonomy of civil society. This specific pattern of today's globalization goes with serious underconsumptionist tendencies as self-sufficiency in wage goods production is achieved in economies with a very low marginal product of labour in agriculture and structural unemployment which disempowers all labour. The 19th century likewise intensive globalization was characterized by full employment tendencies, rising real wages and an expansion of the welfare state. A return to such a convoy model of globalization is possible through marginality reducing development policies for uplifting the poor in the South.

JEL Classification: F31; J3.


Keywords: Productivity wages prolits exchange rate