Recession is getting deeper – the ‘real world’ is suffering
THE FINANCIAL crisis is getting worse. Across the planet, the stock market casinos have been plummeting. Japan’s Nikkei index at one stage hit a 26-year low.
There have been IMF bailouts for Lithuania and Hungary to try to avert banking crises throughout the ex-Stalinist Eastern Europe. But it is no longer just the finance markets that are being hit; the ‘real world’ is now suffering as well.
In Britain, even Gordon Brown now admits that the British economy is in a recession. House building is clearly in recession. Other industries are also preparing for belt-tightening.
An Observer survey (26 October) suggests that almost four out of every five British businesses are cutting back on hiring new staff, and cutting employees’ pay and bonuses.
Rich business people and their system caused this crisis. But they want working people to pay for it through lost jobs and cut pay. Government spending will also be attacked, as universities minister John Denham hinted with his announcement that university places could be cut to pay for bailing out the banks. Other public services could find themselves under attack as well.
Determined struggles are vitally needed to defend workers’ jobs and living standards and conditions and our much-needed public services.
The Socialist Party will continue to participate in such struggles and will keep fighting for a socialist solution to the problems caused by capitalism in crisis.
