 The state is out of control. So I don't want to lose the big picture now. The early 1980s start, late 70s end, with a crisis in American capitalism. One strategy to deal with a crisis is to get the capitalists to increase their distributions of surplus to capital accumulation, give them more surplus in the ways that I described by reducing the value of labor power. That worked. That was enormously successful. American capitalism begins to recover, employment grows, and so forth. The crisis of capitalism, which is solved, is displaced upon the state because the state absorbs this strategy of cutting taxes, increasing defense expenditures, and other kinds of expenditures. And you get the struggle here between Republicans and Democrats over these public goods right up to the present. So the deficits rise. And one consequence of the deficit is that if the state starts to issue more and more bonds to finance this deficit, then you're not supplying it to me. And the price of bonds start to fall. Interest rates start to rise in the United States. Then the very rise in interest rates will choke off if it continues. It can contribute to a choking off of the recovery. We did this in 305 because now you have a subsumed class payment on the part of industrial capitalists which will rise, which is rising interest rates paid to the bankers for the capitalists getting access to loans to expand their businesses, to buy other companies, and so forth. And that expansion in interest can constrain the recovery. Also, in workers who are in debt to purchase their homes, to finance the college education for their kids, for their automobiles, for their household appliances, typically, as we have said, go into debt to maintain their consumption with their cut in wages, well, those individuals are facing then higher interest payments on that debt. And that too is going to constrain their expenditures in a different way, but too constrain it just like the industrial capitalist. Hence, you've got the possibility of a recession rooming because of the very rise in interest rates, because of the rise in deficit, because of the cut in taxes and the increase in expenditures by the state that helps solve the capitalist problem. It's a little bit out of control, isn't it? The solution to capitalism creates then this danger to capitalism. And hence, the Fed would have to step in if they're going to maintain low interest rates, which in turn has all of its repercussions on the US economy, including the risk of inflation. The second one, besides the state being out of control, is this crisis also gets displaced onto households across the United States. And I'm going to end on that note. What goes on inside households? Well, a variety of different laboring occurs inside households, as you all know. Food preparing, and cooking, and cleaning, and child rearing, and bookkeeping, and education of children, and repairing of goods and services, nurturing, and so forth, et cetera, as well as sleeping, and a variety of other labor processes occur. Within households, many of these labor processes and the household wealth that they produce have historically been the province of women that is changing in a variety of countries, including the US, but historically, including during this period of time. More or less, they are produced inside the household by women. So women spend time inside the household doing these labor process, but now let's make use of this course. They also engage in a class process inside the household, which is they spend time producing meals for themselves, but then they spend some extra time producing meals for their spouse or partner. They spend time cleaning the house for themselves. That's their necessary labor. But then they spend labor above and beyond that, an extra labor, a surplus labor, cleaning the house for their spouse or partner. So in other words, women are doing necessary and surplus labor within the household. And then we actually now have numbers on that. The Bureau of Labor Statistics has a household survey. And women spend 40 hours, and some people, when they do estimates, even more, 40 hours for seven days a week doing this kind of labor, which includes this necessary and surplus labor, very similar to what we did weeks ago in this course when we presented it. Increasingly, women enter the labor force. Recall, to supplement the diminished real wage of their male partner, women enter the labor force selling their labor power, which they always had done, but it was especially in times of war in the States. But now increasingly, women took not just part-time jobs, but full-time jobs outside the household to, in part, to supplement the reduced real wage of their partner. Now I keep emphasizing, in part, because I don't want to reduce this just to economics. There were also important cultural and political changes in the United States, which pushed women out of the labor force, not the least of which was the women's liberation movement in the 1960s and the long struggle of women for rights even before the turn of the last century onward. So we had political and cultural and these economic changes, women enter the labor force, but they're entering the labor force. They're now selling their labor power outside the home while many of them, according to the Bureau of Labor Statistics, continue to do necessary and surplus labor inside the household. So what we have for, I would guess, the majority, vast majority of households in the United States, we have women doing necessary labor and surplus labor inside households. They continue to do that. So they continue to hold that job inside the household, producing all kinds of household wealth to maintain themselves, their children, and their husbands. At the same time, they're doing necessary labor and surplus labor outside the household. Again, because of what capitalism has brought, as well as these other cultural and political changes that I mentioned, but at least capitalism also, in part, pushes them to sell their labor power outside the household. Well, let's assume that it takes, I don't know, let's say eight hours a day to sleep and to maintain your body. That is what I have in mind here is you need so many hours to sleep, to refresh your body. You need so many hours to wash and to eat and so forth, et cetera. Let's just, you know, not preparing the meal, but just actually sitting down and eating it. So let's assume that that's eight. So I have 24 minus eight, there's 16 hours available. If this is eight hours over here inside the household, if this is eight hours outside the household, my God, there's no hours left. That is, the free time, I'll call it R, the residual, the free time, would you be time what? Time relaxing, watching a little television, listening to music, reading a book, you know, talking to your neighbors or whatever. That free time, in effect, gets constrained because women have to go outside the household to sell their labor power to supplement their husband's declining real wage. And so what we have in the United States is literally an impossibility. The solution to the capitalist crisis, it not only gets displaced upon the state and a crisis emerges there, but you get a crisis across households in the United States. The families suffer severe strains because everybody in the family is working. And hence, when husband and wife come home from a full day outside the household to a place inside the household in which traditionally she was the preparer of these meals and washing for him, she doesn't literally have enough time to do all this. This is completely squeezed. She begins to cut into her sleep time to make more time available here. He wants his surplus in the form of meals and washing and so forth, et cetera. And it becomes even more important because his real wage is being cut so the household becomes an even more important place of consumer goods for him to offset the constrained consumption out of the household. Well, you got a recipe for a disaster here. As he puts pressure on her to continue to produce surplus, and as she says, look at, I mean, what do you want from me? I'm working a full-time amount here. I don't have any time for myself, okay? And you want me now to add even more hours producing this stuff. You get increased tension and if not violence within the household. So what we have is, and I'm not reducing it again, I'm arguing here the stress and strains of the household over-determined the breakup of households, the divorce rate in the United States. I'm not reducing that to obviously economics. But all I'm arguing here is that the capitalism outside the household has an impact on what goes on inside the household as well as what goes on inside the state. And so what you have across the United States is a frustration and anger and an upset emerging from capitalism itself. But no one or very few people explain to the individuals that their problems there at home, their problems at the job, their debt that they're in and so forth is connected to the class structure of the United States. So that is one of the important messages of economics 305. I hope you have enjoyed this course and I hope you continue to read and the Marxian literature. Thank you very much. This is Professor Resnick.