The general fear is that Federal Reserve Chairman Alan Greenspan will raise interest rates to prevent a rise in prices, or to keep inflation in check. However, the direct result of such a threat is that capitalists decrease investments. Such was the case yesterday when fear prompted investors to sell and the Dow and Jones industrial average drooped 180.78 points. So the real result is a vicious capitalist cycle.
Workers achieve a slight gain in wages and benefits.
At the threat of a rise in interest rates, investors pull out their investments, which causes a decrease in the market economy resulting in layoffs and higher unemployment. Capitalists are self-interested. For example, Capitalist A may downsize and decrease investments to increase his own profits. The culminating effect is that workers will be laid off in all of these industries. So Capitalist A actually harms himself.