by Lederer
[Title Page and Publication Details]: Title page and publication information for Emil Lederer's lecture on the economic revolution and the 40-hour week, delivered at the 14th Congress of German Trade Unions in 1931. [Introduction: The Economic Crisis and the Question of Working Hours]: Lederer introduces the 40-hour week as a critical issue for social production and distribution during the unprecedented economic collapse of 1931. He distinguishes the current crisis from 19th-century cycles by its scale (25% unemployment), the role of cartels in braking free market adjustments, and the breakdown of international credit balancing mechanisms. He outlines three key questions: technical feasibility of production, the impact on private profits, and the cultural/qualitative effect on the worker's life. [I. Main Causes of the World Economic Crisis]: Lederer analyzes the structural causes of the crisis, highlighting a universal technical revolution that reduced labor demand across all sectors simultaneously. He argues that the 1920s investment boom led to an 'inflation of valuation' where stock prices became the fragile basis for credit. He critiques the concentration of capital in large concerns at the expense of small processing industries and notes the added pressure of a changed population age structure. Finally, he attacks the role of cartels and tariffs in creating price disproportionalities that prevent economic recovery. [II. The Intertwining of Politics and Economy]: This section explores how political instability exacerbates economic distress. Lederer discusses the deflationary pressure of German reparations and the resulting shift from long-term to volatile short-term international credits. He argues against the rising trend of 'autarky' (economic self-sufficiency), claiming that modern technology necessitates larger, international markets. He references Marx to suggest that current national political boundaries have become 'fetters' on the productive forces that have outgrown them. [III. Investment Challenges and Credit Distribution]: Lederer addresses the failure of capital to flow into production despite savings. He identifies a lack of profitable investment fields due to massive overcapacity and political risk. Critiquing purely monetary solutions (like those of the Bank of England or Keynesian ideas), he argues that lowering interest rates is insufficient without a simultaneous 'shattering' of artificially high cartel prices. He suggests that the first step must be filling existing capacity through operating credits rather than new large-scale capital investments in potentially redundant industries. [IV. Correction of Capital Values and Debt]: Lederer discusses the tension between falling prices and fixed nominal debts. As the value of money rises, the real share of the social product going to 'rentiers' (bondholders and mortgage holders) increases at the expense of producers and workers. He argues that just as labor rights have been cut, 'well-earned' capital rights must also be adjusted to restore economic proportionality. However, he warns that Germany cannot change its currency value in isolation without risking a collapse of the exchange rate. [V. Technical Progress and Structural Unemployment]: Lederer challenges the 'compensation theory' which claims technology automatically creates new jobs. He argues that the current pace of technical progress outstrips capital formation, leading to 'structural unemployment' of at least one million people that will persist even after the crisis ends. He advocates for the 40-hour week as a permanent measure to distribute the limited volume of work across the entire population, comparing it to spreading butter evenly over bread. [VI. The Significance of the 40-Hour Week and Leisure]: In the concluding section, Lederer frames the 40-hour week as a testament to working-class solidarity, as workers accept potential wage sacrifices to help the unemployed. He emphasizes the cultural importance of increased leisure time for the 'emancipation of the proletariat' and the development of the individual's personality. He concludes that technical progress should serve to free human forces rather than just increase production, marking a step toward the human mastery of the economy.
Title page and publication information for Emil Lederer's lecture on the economic revolution and the 40-hour week, delivered at the 14th Congress of German Trade Unions in 1931.
Read full textLederer introduces the 40-hour week as a critical issue for social production and distribution during the unprecedented economic collapse of 1931. He distinguishes the current crisis from 19th-century cycles by its scale (25% unemployment), the role of cartels in braking free market adjustments, and the breakdown of international credit balancing mechanisms. He outlines three key questions: technical feasibility of production, the impact on private profits, and the cultural/qualitative effect on the worker's life.
Read full textLederer analyzes the structural causes of the crisis, highlighting a universal technical revolution that reduced labor demand across all sectors simultaneously. He argues that the 1920s investment boom led to an 'inflation of valuation' where stock prices became the fragile basis for credit. He critiques the concentration of capital in large concerns at the expense of small processing industries and notes the added pressure of a changed population age structure. Finally, he attacks the role of cartels and tariffs in creating price disproportionalities that prevent economic recovery.
Read full textThis section explores how political instability exacerbates economic distress. Lederer discusses the deflationary pressure of German reparations and the resulting shift from long-term to volatile short-term international credits. He argues against the rising trend of 'autarky' (economic self-sufficiency), claiming that modern technology necessitates larger, international markets. He references Marx to suggest that current national political boundaries have become 'fetters' on the productive forces that have outgrown them.
Read full textLederer addresses the failure of capital to flow into production despite savings. He identifies a lack of profitable investment fields due to massive overcapacity and political risk. Critiquing purely monetary solutions (like those of the Bank of England or Keynesian ideas), he argues that lowering interest rates is insufficient without a simultaneous 'shattering' of artificially high cartel prices. He suggests that the first step must be filling existing capacity through operating credits rather than new large-scale capital investments in potentially redundant industries.
Read full textLederer discusses the tension between falling prices and fixed nominal debts. As the value of money rises, the real share of the social product going to 'rentiers' (bondholders and mortgage holders) increases at the expense of producers and workers. He argues that just as labor rights have been cut, 'well-earned' capital rights must also be adjusted to restore economic proportionality. However, he warns that Germany cannot change its currency value in isolation without risking a collapse of the exchange rate.
Read full textLederer challenges the 'compensation theory' which claims technology automatically creates new jobs. He argues that the current pace of technical progress outstrips capital formation, leading to 'structural unemployment' of at least one million people that will persist even after the crisis ends. He advocates for the 40-hour week as a permanent measure to distribute the limited volume of work across the entire population, comparing it to spreading butter evenly over bread.
Read full textIn the concluding section, Lederer frames the 40-hour week as a testament to working-class solidarity, as workers accept potential wage sacrifices to help the unemployed. He emphasizes the cultural importance of increased leisure time for the 'emancipation of the proletariat' and the development of the individual's personality. He concludes that technical progress should serve to free human forces rather than just increase production, marking a step toward the human mastery of the economy.
Read full text