German recession fears, should we blame the Chinese car market?
BMW followed in their footsteps in This was largely because the continental and Japanese producers had had their plants and infrastructure destroyed in the war and production had to be re-started with new capital equipment. The UK had run down most plants during the war but they were not destroyed, so production resumed with run down capital plants. In the decades which followed there was insufficient capital investment which led to a steady decline in UK vehicle competitiveness while continental and Japanese production recovered.
This led to crisis and nationalisations in the 70s followed by privatisation in the 80s. The revival of the industry was achieved by Japanese investment and production methods which led to massive increases in productivity and exploitation of the workforce. The new mini plant of the early 80s, which was at the time hailed as a massive advance for the UK motor industry, produced approximately 25 cars per worker annually. Nissan today annually produces 99 cars per worker, Toyota 88 and Honda It is a measure of the decreased profitability of global capitalism that today, despite productivity gains on such an enormous scale as this, gains which bourgeois economists assure us are the only route to profitability, Honda finds its plant unprofitable.
Marx maintained that increases in productivity tend to reduce the rate of profit. They may initially result in increased profitability for the unit which first increases productivity, but once these productivity gains are applied generally they reduce the rate of profit. There are two reason for this. Firstly productivity increases always involve expelling workers from the production process and as workers are the only source of surplus value the total surplus value produced is reduced. Since surplus value is the basis of profit, profit is reduced.
Secondly they generally entail vast increases in fixed capital equipment such as machinery robots , control systems etc. This means the rate of profit, which is ratio of profit to capital laid out on machinery and raw materials and wages, decreases. All this has been vehemently denied by bourgeois economists, branded as against common sense and equivalent to heresy.
However, the developments at Honda, illustrate, once again, that Marx was right. Production in the UK was always about getting tariff free entry to the EU since most of Japanese production is exported to Europe, and the new trade deal makes the UK plant less important as the years go by. Of course this is not the story that dominates the capitalist media. This has not stopped the usual fissures of the British ruling class from making Brexit the only debating issue.
One of the leading economic advocates of Brexit, Professor Patrick Minford of Cardiff Applied Business School, is quite happy to see the car industry and much of manufacturing destroyed by Brexit:.
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These neo-liberal kamikaze capitalists have never been able to win that argument since it is the state which has repeatedly protected the system as a whole from the inner laws of capitalist accumulation. All they have been able to do is come up with policies which have made the lot of the working class worse. True to form, the Financial Times , which defends the overall economic interest of Britain plc against all the little Englanders, was quick to take up the fight.
Honda holds parts for production in its warehouses, which, though enormous ,m2 or 42 football pitches , hold only enough for 36 hours of production.
Outside of the customs union delivery is likely to be between 3 and 9 days. It is estimated Honda would have to provide extra warehouses and fill in 60, extra customs forms annually. The situation is similar for German producers. Stephan Freismuth a director of BMW said:. That the whole Brexit saga could possibly end in something like this is a further indication of the depth of the economic crisis our rulers face and their loss of control of the situation.
Utterly divided they abandoned their normal parliamentary facade to allow a referendum to become binding for the first time in UK history and have shot themselves in the foot with Brexit. Even now they do not even know how to implement it and are staggering about unsure what to do next.
Banks reopened last week after mostly being shut since unrest began on Oct. Fearing capital flight and amid a hard currency shortage, commercial banks have placed tight restrictions on withdrawals and transfers abroad.
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The hard currency shortage has spawned a black market where the price for dollars has surged since the start of unrest, reaching over 2, pounds to the dollar on Monday, about a third higher than the pegged rate of 1, Adding to tensions, two people were killed when their car slammed into a traffic barrier and burst into flames on a coastal road in the early hours of Monday, security sources said.
The crash sparked debate on social media about whether protest tactics, which have often included road blockades, had gone too far, although it was not immediately clear who set up the barrier that caused the accident. A video on social media apparently taken from a traffic camera showed a car smashing through a metal barricade in the center of the road and lighting on fire.
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Reuters could not independently verify the video. Consumer debt has risen back to pre-crisis levels in many countries. Corporate borrowing has soared and governments, while they have reduced annual deficits, continue to sit on mountains of debt that dwarf the borrowing seen before the crisis. Another similarity with the pre period is the determination of central banks to increase borrowing costs.www.inbizion.com/wp-content/best-married-dating-sites-uk.php
Viewpoint: How serious is India's economic slowdown? - BBC News
The speeches of central bank officials are littered with references to the need for higher rates, both to bring discipline back to borrowing and, in case another credit squeeze grips the banking sector, to have the tools to prevent a full-blown economic collapse. Bank of England governor Mark Carney has said as much , though his remarks are tempered by threats of a no-deal Brexit. The Swedish central bank, the Riksbank, recently increased interest rates and signalled that it planned to continue on that path now that companies were reporting the largest labour shortages since Threadneedle Street has already raised its base rate from 0.
The Fed is even further ahead, having pushed rates to a level of 2. Jacking up rates to calm soaring economic growth — at least the kind of growth that can lead to inflation — is straight out of the textbooks. With only small or non-existent increases in wages above inflation, households might opt for more borrowing, or dip further into their savings to maintain consumption.