Globally Segmented Labor Markets: The Coming of the Greatest Boom and Bust,Without the Boom

Abstract

A world social structure of accumulation (SSA) is forming based on global segmentation of labor, financialization, and a neoliberal trade regime. Unlike its Fordist era counterpart, this SSA lacks a corresponding regime for consumption because it has outsourced production to low-wage authoritarian regions. This is resulting in inadequate purchasing power within developed nations for whom global production is intended, raising the potential of global crisis. In fact, these emerging structures may implode before any significant accumulation occurs when the US consumer debt bubble that has been fueling consumption bursts. The article concludes that the emerging system is intensifying class contradictions embedded in private property relations that will lead to intensified downturns. Therefore, the only structural solution is not reform but fundamental reorganization of socioeconomic relations. However, this requires a new transnational labor-activist movement willing to challenge the legitimacy of capitalism with radical counter-ideology and militant direct action.