Boom and bust — the capitalist curse
2018Barry Weisleder 2018-02Read it in the scan (PDF at ETOL), page 10 →
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comes decline, many to the point of impoverishment flected “glory” of the Canadian economy. The GDP is up. Unemployment is down. Housing starts are on an The decline in the rate of profit is also a feature of the sider the following. The growth in exports is weak. ism on machines, increasingly on robots. The rate of Trade is in deficit territory. Wage improvements are exploitation of labour can be increased. But machines the slowest since 1998. In fact, the past 40 years have cannot be squeezed to produce more surplus value seen a virtual wage freeze, except for the top 1 per cent of the people, each of whom makes more money 20th-century liberals to propose “solutions” to these deep-seated problems. One experiment, proposed by go into debt. This is encouraged by low interest rates, British economist John Maynard Keynes, seemed to and by a selfish desire to eat and sleep under a warm work for a while. Government expenditure (based on Wing) created public projects, social services and jobs. economy seem like a merry-go-round (except for the But a by-product of such currency creation, deficits merry part)? Well, that’s due to the very nature of the and public spending is inflation. Inflation can quickly get out of control. Eventually debt mushrooms, and lies dominate it, the system is chaotic, unplanned, and quite irrational. It puts human needs at the bottom of the list, well below profit, the so-called bottom line. comes to the rescue... to the aid of the biggest banks For proof, just look at how bankrupt firms, like Enron, ity production. That means production for profit, not for use. When sales of goods and services slow down, assembly lines slow, or grind to a halt, and workers war destroys the competition. It also kills millions of because too many commodities were produced to quest by war lays the basis for a new round of capital generate high profits. Viola! An overproduction crisis accumulation and production for profit. This works like a charm for the ruling rich if wages and benefits 10 SOCIALIST ACTION FEBRUARY 2018 Prime Minister Justin Trudeau is basking in the re upswing.
However, before popping a champagne cork, con in a day than most workers do in a year.
In order to pay their bills, millions of working people roof. More about debt in a moment, but first...
Do the ups and downs of the so-called free enterprise market economy. Despite the fact that giant monopo Stelco, Target and Sears, treat their retired workers.
Capitalism is characterized by generalized commod are laid off.
Is that because there is no work to be done? No. It’s occurs. Often, it involves the overproduction of use less things. Bombs, not homes. Industries are peri odically over-capacity. Machines sit idle. Workers’ in and desperation.
system. It results from the growing reliance of capital (profit).
tax revenues, deficit spending, and some money-print becomes bad debt. Then the bubble bursts.
and corporations -- not to the rescue of heavily in debted workers.
bust syndrome, given the physical limits of global re sources and the world market?
people and devastates the natural environment. Con Over-production crises are a mainstay of capitalism. injustice. The threat of workers’ revolution prompted some Remember 2007-2008? Of course, the government Is there any “conventional” way out of the boomYes. But it’s very risky and very bloody. Imperialist ability of it. parties and labour unions by fascism and war.
Some countries, due to exceptional circumstances, the busts, the very temporary nature of the “solu There is only one way out of this mess—that is, in the the commanding heights of the economy (not the cor democratically decided plan.
The notion, entertained by some liberals and social firms (with or without compensation, with or with out workers’ and community control), will not be suf economy can replace the waste and brutality of capi talism with a cooperative commonwealth.
Canada is not currently on the verge of an economic transformation. But that day is surely coming as capi environment. Radical change will be hastened as so cialists step up efforts to explain the necessity and vi Hopefully, the transformation will occur before cata strophic climate change makes political action a tragi facing humanity. n