Economic Crisis

Outsourcing illustrates the laws of capitalist exploitation (part 2)

We are publishing here the second part of the article on outsourcing which appeared in WR 290... In this second part, we will see that outsourcing is a means of putting the workers of the world into competition with each other, and look at how the left wing of capitalism presents it as something ‘avoidable’ and thus less ‘acceptable’ than other attacks. This is just a way of masking the mortal crisis of the capitalist system.

Pensions crisis shows capitalism has no future (2005)

The social system which runs the world – capitalism – cannot offer the human race a future. It is dragging us through an endless spiral of wars. It is poisoning the natural environment, leading to one catastrophe after another. It condemns millions to unemployment and poverty. And now, in the central countries of the system, it is telling us that it can no longer afford to support us after a lifetime of toil.

Economy: Three decades of worsening crisis (part 2)

In the first part of this article (in WR 287) we showed the evolution of the economic crisis of capitalism since the end of the 1960s following the period of reconstruction after World War II. In the second part we are going to try to show that the capitalist world is sinking into a new world recession and the bourgeoisie will be obliged to make the working class pay still more heavily.

Trade war with China: An opportunity for dividing workers

According to the bourgeoisie, China has become the new workshop of the world. The media are full of images of ‘Made in China’ shirts, trousers, shoes and other clothes arriving in Britain, Europe, or the USA. For the western bourgeoisies, it’s obviously necessary to put limits on this flood of Chinese textiles...

Mass Unemployment, New Elections: The Ruling Class wants to hide the Bankrupcy of Capitalism

After the bitter defeat suffered by the SPD at the May 21 provincial elections in North-Rhine-Westphalia (NRW) – the so-called “bastion of Social Democracy” – the German Chancellor Schröder and the SPD party leader Müntefering countered with the announcement that the next general elections would take place a year ahead of schedule, in autumn 2005. After recovering from the surprise of this announcement, the German political scene reacted very positively to it...

Economic crisis: the descent into the abyss

The last recession (2000-2001) dealt a serious blow to all the theoretical flights of fancy that had developed around the supposed "third industrial revolution" based on the micro-processor and new information technologies, just as the collapse on the stock exchange demolished all the blather about a new "ownership capitalism" where wage labourers were to become participating shareholders – the umpteenth version of the worn-out myth of "popular capitalism", whereby each worker is supposed to become a "proprietor" through the ownership of a few shares in "his" company.

Capitalism in crisis can only lengthen the working day

World Revolution 283 carried an article from WR’s 16th Congress entitled Britain can’t escape the world economic crisis. It explained the reasons for the relative ‘health’ of the British economy compared to its traditional European rivals. The main reason it identified is the increase in the level of exploitation of the working class in Britain over the last 20 to 30 years due to a general increase in the length of the working day...

Britain can’t escape the world economic crisis (part 2)

In the last issue of World Revolution we published the first part of the report on the National Situation presented to the 16th Congress of WR in November last year. This examined the reasons for the increase in the rate of growth of GDP in recent years, concluding that it came from an increase in the absolute rate of exploitation of the working class and, in particular, from an extension of the working day through an increase in the rate of overtime, especially unpaid overtime. In the second part, published below, we go on to consider how the ruling class completes the task - once again at the expense of the working class.

16th Congress of WR: Britain can’t escape the world economic crisis

In the recent budget Gordon Brown, the Chancellor of the Exchequer boasted “Britain is today experiencing the longest period of sustained economic growth since records began in the year 1701 […] Inflation has been the lowest for 30 years. Interest rates the lowest for 30 years; employment the highest ever. And with living standards since 1997 rising on average by 3% each year, Britain has today the best combination of low inflation, high employment and rising living standards in a generation”.

Capitalism can't hide its world wide crisis

The bourgeois media can't hide the fact that around the world capitalism's economy continues to deteriorate. From the powerful economies of North America, Japan and Western Europe to the peripheral countries of the system, all the economic indicators used by the dominant class to measure the performance of its economy are showing signs of new levels of degradation of the world capitalist economy.

Corporate scandals reveal depth of economic crisis

Earlier this year the American ruling class proudly announced the end to the post-September 11 recession it had only recently acknowledged. Very reluctantly, faced with worsening economic statistics, the US bourgeoisie admitted its economy had in fact been in recession since March of 2001. Nevertheless, soon after this sombre admission, the American bourgeoisie precipitously declared the end to the ‘shortest recession in American history’ and announced the beginnings of an economic recovery. Since then, we have seen corporate bankruptcies (including the continuing circus surrounding Enron, which, at the time, was the largest bankruptcy in US history), spiralling redundancies and stock market turbulence which clearly give the lie to health of the US ‘model’.

Economic crisis and war show the bankruptcy of capitalism

The world capitalist economy is openly in crisis. Japan, the US and now Germany are officially in recession. The economic indicators are in the red. In 2002, the rate of growth in the 30 OECD countries will not go above 1%. The optimistic assurances of the experts about the recovery being just around the corner look more and more like whistling in the dark.

The 'new economy' is no solution to the capitalist crisis

It seems that the crisis is over. At least that’s what the bourgeoisie and its media are telling us. Economic growth is charting an unlimited upward course and unemployment is about to be completely done away with. The ruling class, in short, has overcome the contradictions of its system and put an end to 30 years of crisis.

The crisis: into the abyss

The plunge into an open recession which will be still deeper than its predecessors - some are even talking of "depression" - is silencing the "experts’" talk about lasting economic growth. If the latter are to be believed, the domino collapse of the South-East Asian economies since summer 1997 should have been no more than a blip, without any great effect on the economies of the developed countries. Since then, a tidal wave has passed over countries from Russia to Brazil, from Venezuela to Japan, to strike the heart of the great capitalist powers: "the time has come for an agonising reappraisal". has come for an agonising reappraisal".

Resolution on the international situation (2002)

The resolution on the international situation from the 14th congress, adopted in May 2001, focussed on the question of the historic course in the phase of capitalist decomposition. It correctly highlighted the acceleration both of the economic crisis and of the slide into war and barbarism across the planet, and examined both the problems and the potentialities of a proletarian response. The following resolution, proposed to the ICC's extraordinary conference of Easter 2002, is intended to supplement that report in the light of the events of 11th September and the ensuing "war against terrorism", which have largely confirmed the general analyses of the 2001 Congress.

"Peace and prosperity" or war and poverty?

Eight years after his father, George W Bush has begun his term as president of the USA. His father promised us "peace and prosperity" after the disintegration first of the Eastern bloc, then of the USSR. The son inherits a situation of widespread war and poverty, which has proliferated and deepened throughout the 1990s. The state of the world is truly catastrophic, and this is not merely a temporary transition before the promised land prophesied by Bush Senior. All the signs are that capitalism is dragging humanity down into a vicious circle of bloody military conflicts on every continent, of increasing imperialist antagonisms especially between the great powers, a new and brutal aggravation of economic crisis and poverty, and a series of disasters of every kind. These three elements - war, economic decline, and the destruction of the planet - are making conditions ever more intolerable for today's generations, and are endangering the very survival of the generations to come. It is becoming ever clearer that capitalism is leading the human species to extinction.


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