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From The Socialist newspaper, 19 March 2008

Global economic crisis

We can't pay the price - organise to fightback!

Dow Jones falls amid turbulence, 19 march 2008

Dow Jones falls amid turbulence, 19 march 2008

AMERICA IS in recession and news of deepening financial disaster comes thick and fast. Now, Bear Stearns, America's fifth largest investment bank has suddenly collapsed, triggering an emergency takeover of it by JPMorgan.

Judy Beishon

JPMorgan only agreed to the deal on the basis of the US Federal Reserve using taxpayers' money to guarantee $30 billion of the bankrupt bank's suspect loans. Terrified of further major bank collapses, the Federal Reserve also made $200 billion available for crisis loans to banks.

These actions and sums are unprecedented - as was the 24 billion crisis funding to Northern Rock in Britain.

Banks like Bear Stearns have lent huge sums of money that they did not actually have, enriching their shareholders and directors in the process. Almost unimaginable sums of money have also been 'traded' and betted, in a vast tangled web of transactions that spiraled and escalated. Now the edifice is crashing down.

Governments and top financiers across the world are realising how unstable the entire global financial system is. Panic is setting in, with references being made to the 1929 stock market crash. The US Fed is cutting interest rates to try to stem the flow of disasters. The problem though is not that interest rates are too high, but that no-one is daring to lend money in the first place.

This rapidly-descending crisis has not been caused by ordinary people, but we are expected to pay the price, in the form of low pay, lost homes, job losses, service cuts and other attacks. The blame lies with the capitalist profit system, which has always had periodic crises and always will, for as long as it exists.

Added to this, the economic prospects have been worsened by the phenomenal greed and mismanagement of those at the top of society. Regarding this in the US, Larry Elliot, economics editor of The Guardian, commented: "it is somewhat surprising that there is not already rioting in the streets, given the gigantic fraud perpetrated by the financial elite at the expense of ordinary Americans".

The US super-rich have increased their wealth massively over recent years, while ordinary people have not. A similar wealth gap has become more obscene in Britain too, yet incredibly, government minister John Hutton declared just last week that "more millionaires" are needed and that the 'freedom' to get rich is "a good thing".

Rather than 'rioting in the streets', workers must get organised, in fighting trade unions and by building a new force - a new workers' party - that can challenge the crisis ridden and rotten capitalist system. This party will need to pose a socialist alternative; that of replacing the madness of the profit-driven 'free market' with democratically elected, accountable, decision-making bodies at every level of society, that could plan the use of all resources for the benefit of the overwhelming majority of people.

On the 15 March national anti-war demonstration, hundreds of young people expressed an interest in the socialist ideas being put forward by the Socialist Party. A new generation is looking for a different future. Join us in fighting for one.

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Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our special coronavirus appeal.

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In The Socialist 19 March 2008:

Global economic crisis

Darling's 'more of the same' budget


Anti-war demonstration

Interest in socialist ideas on anti-war demo


National Union of Teachers Conference

Strike back against pay robbery!

Magic strike at Merlin school

School tries to evict pupils


Socialist Party youth and students

Fight for decent youth facilities

Socialist Students


Socialist Party workplace news

Anger and strength in the DWP workplaces

End the blacklist!

Support for Shelter staff

Pay more to get less

One law for them, another law for us

In brief


Socialist Party news and analysis

It's not that councillors can't fight...it's that they won't!

Sack the mayor - not the wardens!

Remote MPs' privileged lifestyle

Salford campaign reprieves women's centre


Post Office closures

No more post office closures!

Following the Essex road


Socialist Party congress 2008

Socialist Party 2008 congress

Building a campaigning, fighting socialist party


International socialist news and analysis

Portugal: Strikes and mass protests against government


 

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Related links:

World economy:

triangleEast London Socialist Party: How will coronavirus effect the capitalist world economy?

triangleWest London Socialist Party: Globalisation/deglobalisation and the world economy

triangleCoronavirus infects the world economy

triangleImperialist tensions escalate as world economy teeters

triangleWhat lies behind the US-China trade war?

Stock market crash:

triangleChina at a turning point

Global:

triangleA new world order - global reconstruction after World War Two

triangleA CWI May Day 2020 statement

triangleGlobal covid-19 pandemic, capitalist crisis and bitter class polarisation in the United States

US:

triangleCardiff West Socialist Party: The US presidential election

triangleA day in the life of a salon worker

Banks:

triangle'FinCEN Files' expose rampant financial corruption: nationalise the banks!

Capitalist:

triangleWaltham Forest Socialist Party: Trade unions in the era of Covid and capitalist crises

Capitalist system:

triangleCoronavirus - a workers charter 2020

Super-rich:

triangle1,600 less benefits if your job goes - while super-rich splash cash

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