Billion dollar refineries are closed in one part of the world, while others open elsewhere. This is the craziness of the global capitalist economy. It wastes huge amounts of material and human resources, whereas these same resources could be used in a global plan to develop the economy in way more in line with the interests of all the people of the world.

Banks are paying out huge bonuses to the very same speculators who were responsible for the credit crunch in the first place. Banking is to remain a financial wild west. If we want a financial system that works for the interest of the people we need to get rid of the whole capitalist system.

The world of international finance has been shaken by the default in Dubai. Commentators have suggested that this could be the cause of the recession moving into a double dip. Now the Greek government is running a government deficit of 12.7% of GDP, which is more than four times the permitted European maximum. Capitalism stalks one country after another, probing for weaknesses and laying the weakest low. This system is inherently unstable. As long as it exists, it threatens all our livelihoods.

Big banks like Goldman Sachs have become flush with free money and have been announcing mega-results for the third quarter of last year. They have also started to pay huge bonuses again for bankers and directors. So it’s business as usual for capitalism - at a time when a record number of Americans (32million) are on food stamps, unemployment of various sorts has reached 16% of the workforce and people are losing their homes.

Why is New Labour hurling yet more of our money at the banks? The latest handout has been described as the ‘world’s biggest bank bailout.’ It’s costing every household in Britain £2,000, on top of all the money wasted last time round.

The world of international finance has been shaken by the default in Dubai. Shares have taken a tumble all over the world. Commentators have suggested that this could be the cause of the recession moving into a double dip, of a further downturn in the world economy.

At the end of September 2000, tens of thousands have been trying to protest at the annual meeting of the World Bank and International Monetary Fund in Prague. They are right to protest. But what are they protesting about? The World Bank, IMF and the World Trade Organisation - that was stopped in its tracks in Seattle last December - are the three pillars of the global capitalist economic order. They argue that problems like world poverty, the destruction of the environment and poisoning of our food "just happen." Actually these things are imposed by the giant multinationals that control the world's economic resources. And these three institutions are their enforcers.

Further to the publication of the Introduction to debate between AG and MB on The tendency of the rate of profit to fall and post-war capitalism and A reply to AG by Mick Brooks, we are publishing this piece by Mick Brooks which puts that debate into the context of the decline of British capitalism after the Second World War. It highlights the crisis of bourgeois economic theory and also the limitations in the method of AG.

For the capitalists, this Great Recession could be more or less over, but the level of spare capacity in industry and construction together with the level of debt still owed by businesses, government and households alike mean that this recovery may be stunted. Every major capitalist economy now finds that it has more than 30% more capacity than it needs to meet demand. That is a record high of overcapacity in industry.

The capitalist system is passing through its deepest crisis since the 1930s and the Great Depression. The apologists of capitalism – including those in the labour movement – had completely ruled out such a scenario. After all, they explained, capitalism has changed and governments are now able to over-come any deficiencies experienced by the markets. They have learned the lessons of the 1930s.

Some economic commentators and financial journalists have divined the ‘green shoots’ of economic recovery’ growing out of the present crisis. Perhaps the wish is father to the thought. Are they right?

Join us!

Help build the forces of Marxism worldwide!

Join the IMT!

Upcoming Events

No events found