Class Warfare Blog

June 16, 2018

Lies, Damned Lies, and Economics

Apologies to Mark Twain for stealing his phrase and twisting it to make my title. (His line was that their were “lies, damned lies, and statistics.”

Here are a couple of paragraphs from a recent post over at Naked Capitalism:

“A standard recommendation given to late-industrializing economies by the economic advisors of the World Bank and the International Monetary Fund has been to refrain from imposing regulations on the labor market, or if such regulations are already in place, to abolish them.”

“In this view, labor rights and labor protection are more likely to create additional unemployment and informal-sector under-employment, particularly of unskilled workers or labor force entrants, than lead to higher wages and better working conditions. Right? So, esteemed policymaker, what you should do is simple: reduce already existing employment protection, resist those siren’s calls to higher minimum wages, and curb regulation. Later, once your economy has developed, you can bring back some of those “European-style” luxuries. After all, they are good for social peace.”

“Well, this story is as wrong as it is ubiquitous.”

If you want to learn more see Who Says Labor Laws Are “Luxuries”?

If you want to know who economists serve today, I urge you to follow the political dictum: Follow the Money. As to who the World Bank and the IMF serve, well that has been apparent from the get-go. They are like the charter schools who are saying they are serving minority children when all they are really doing is lining their pockets.

Oh, and while the WB and IMF are prattling their twaddle about the dispensability of labor protections, you might want to take notice that that is the program being executed here in the U.S. for the past 50 years. The abolishing of labor protections is not just for “late-industrializing economies,” it is good for all! Follow the money. The money going into the pockets of economists is coming primarily from one source: those who already have a great deal of money and for whom that is not enough and are willing to step on the necks of anyone in their way to even greater wealth.




  1. Hells bells, years before my back self destructed and left me permanently unemployable, I realized that the large companies treated employees like you do sandpaper. You use it until it cannot do anything worth doing, then toss it in the trash. It was getting bad back then and is way worse now days.
    This IS ‘Merikkka, where the working class cannot catch a break. I wondered, after my USMC enlistment was done, why we never had nation wide strikes like they had in Europe and the UK. This was the early 1970’s. I was a Marine from 1968 till 1972. I know the main reason we never got to the point of doing a national strike is that in ‘Merikkka, we are kept divided by crap like religion, skin color, and other bullshit false differences. One woman I worked with for a few years asked me what I’d think if she wanted to be a machinist/mechanic as I was. I told her as long as she could do the work, I’d be happy to work along side her. I always figured if you could do the work you said you could do, I didn’t care what sex you were, what (if any, as I refuse to enter one) church you went to, what your sexual preference was, none of that.
    Just because, none of that was any of my business.
    What did get many of us who were really machinists/mechanics pissed off were these idiots who claimed to be great mechanics, but showed up for work with a small box that held a standard screwdriver, phillips head screwdriver, a small pair of pliers, and maybe a small hammer. Of course they’d always need to borrow your tools. Tough beans and hard cheer buster. Yeah, I was a nasty sarcastic SOB back then.
    I’ve been keeping up reading your blog Mr. President, just don’t have the energy to comment most days. You sure do take on some great topics here. Wish I had the energy to joint comments more often.


    Comment by Walter Kronkat — June 16, 2018 @ 4:02 pm | Reply

    • Always glad to hear from you. Quality trumps quantity any time.

      And we did have nation-wide strikes … back in the 1960’s and earlier … until the plutocrats began their war on organized labor.

      On Sat, Jun 16, 2018 at 4:02 PM, Class Warfare Blog wrote:



      Comment by Steve Ruis — June 16, 2018 @ 8:41 pm | Reply

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