Wages and the market

Concerning wage increases and the recent proposed partnership agreement 
between the trade
union movement and the employers in Ireland I make the following 
observations:

To say that wage rises, due to the implementation of the agreement, will 
push up the rate
of inflation and consequently negatively affect the degree of economic 
prosperity in
Ireland is erroneous. If there is a free market then a free labour market 
must
correspondingly exist. Consequently if wages rise then this must be  a 
result of the
specific market relationship obtaining between the supply and demand of 
labour power. If
the there is a real rise in the price of labour power then the demand for 
labour power
must exceed the supply. Consequently the working class cannot be subjected 
to criticism if
they receive a rise in real wages. Their increase is merely a result of the 
laws of
economics that the much of the bourgeoisie and their economic ideologues  
subscribe to
and are forever praising. Indeed this very same bourgeoisie claims that it 
is distortions
in the market mechanism  that is the source of much of the economic 
problems. This is why
they regularly attack state ownership of the means of production in the 
form of
nationalisation.This being so then, for them, what is needed are freely 
operating market
conditions which means increased wages in Ireland given that according to 
much of the
bourgeois economic community the demand for labour power is currently 
exceeding the supply
of labour power in Ireland. Such a change in the price of labour power, 
according to the
economics of these wise fellows, should lead to economic equilibrium 
whereas a price for
labour that does not reflect market conditions will tend to lead to 
disequlibrium.

These fellows cannot have it both ways.

Warm regards
George Pennefather

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