Eat into the disposable income of the consumer, (as Corbyn would delight in), and the humble workers income falls (or he loses his job and goes on benefits, which the state no longer has the tax revenues to afford,
This is
not politics, neoclassical models underpin all economics undergraduate degrees, both sides of politics embraced it with vigour. It is nort confined to either side of the chamber, but it has not translated into higher standards of living for those not of means, or having chosen their parents well.
I would simply point you to GDP per capita figures in the western economies,
Per capita income is already falling. Welfare spend as a percentage of GDP is increasing. National indebtedness as a share of GDP has grown considerably; the economy cnanot produce enpugh to meet the entitlement models. Globalisation has much to answer for. I would simply say as indigenous industry is lost the tax base declines as does disposable income.
advocates curtailing capital markets ability to adjust, and the states ability to deploy monetary stimulus
I don't advocate curtailing capital markets, but rates at 5,000 year lows some eight years into a so called 'recovery' isn't capitalist; Surely the time for neoclassical stimulus has passed? Should interest rates be hovering at near zero? Price discovery does not exist as money cannot be transparently priced. Risk is not correctly modelled. What is the yield on a 10 year Greek bond, about 5.2% for Greece?.... If 'capitalism' was allowed to operate, far more banks even countries would have paid the price for poor
'profit maximising decisions' in the GFC, but the taxpayer footed the bill. How is that capitalist again? Saving the big banks isn't capitalism, it is cronyism. Our 'market' is nowhere near capitalist.
Oh and what Mr Ford said in his 1926 book Today and Tomorrow was:
“The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. One’s own employees ought to be one’s own best customers.”
He also said:
[QUOTE]
“We increased the buying power of our own people, and they increased the buying power of other people, and so on and on.It is this thought of enlarging buying power by paying high wages and selling at low prices that is behind the prosperity of this country.”[/QUOTE]
The result of the modern
imbalance between
labour and capital is grubs like Mr O'Leary can peddle employment models that would have made for a class war in the 19th century. It is the demographics generating higher retirement rates than can be replaced with declining birth rates that lead to dwindling supply.
Rational choices of those pilots left in the industry '
maximising personal utility' (probably their mental health too) and getting as far away from Ryan Air as they can. Those remaining can choose to withdraw their labour, no small achievement in the modern economic world.