Rising mass incomes as a condition of capitalist growth: implications for the world economy

Abstract

The rise of capitalism in Western Europe was based on rising mass incomes and a political power relationship favorable to the lower classes, which created opportunities for profitable investment. Nowhere in today's underdeveloped world did such conditions exist before the European expansion; nowhere were they created by the mere fact of integration into the capitalist world system. Thus the periphery has been ever more disadvantaged by its connection with the capitalist center. But the center could and can dispense withthe contribution of the periphery and, indeed, on occasion has done so. A planned restructuring of the productive apparatus and social reform in the Third World are both complex and contradictory processes. The working class in the North has to realize its interest in defending the masses of the Third World. It can do so by linking economic concessions in the North-South dialogue (raw material prices or access to markets) to social reform and the creation of a productive apparatus that permits the rise of mass incomes in the Third World.