|New Zealand political commentator Chris Trotter. Taken during his address to the Alliance Party conference in October 2007. (Photo credit: Wikipedia)|
According to a 1983 study undertaken by the German economist, F. Vester, the investment of a billion Deutschemarks in the years 1955-60 produced 1 million jobs. The same amount invested between 1960-65 generated only 400,000 jobs. Between 1965-70, far from generating employment, a billion Deutschemark investment would have eliminated 100,000 jobs. Half-a-million jobs would have been lost if the capital sum was invested between 1970 and 1975.
In other words, the ineluctable trend in modern capitalism is towards job-free growth. Or, as the American economist, Allen Sinai, told the New York Times in 2010: “American business is about maximizing shareholder value. You basically don’t want workers. You hire less, and you try to find capital equipment to replace them.”