economics

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By Friedrich Engels

By Reihana Mohideen

The Wall Street crisis seems light years away from the side streets of Manila’s urban poor slums. For the labouring masses in the Philippines the capitalist system has been in crisis for some time now, unable to deliver life’s basic necessities: jobs and a living wage; affordable quality healthcare and education; and food security.

According to official National Statistics Office data poverty levels have increased between 2003 and 2006, and 2008 is expected to be the worst year since the 1998 Asian economic crisis. Between April 2007 and April 2008 the labour force grew by only 81,000, while the number of unemployed rose by 249,000, i.e. triple the increase in the labour force. In 2008 the number of employed persons fell by 168,000 and there was no employment generation in April of this year. Jobs were being lost at a time when prices and inflation were skyrocketing.

By Walden Bello, Focus on the Global South

[Read more on the capitalist economic crisis HERE.]

September 25, 2008 -- The Wall Street meltdown is not only due to greed and to the lack of government regulation of a hyperactive sector. It stems from the crisis of overproduction that has plagued global capitalism since the mid-seventies.

Many on Wall Street are still digesting the momentous events of the last ten days:

By Peter Boyle

September 26, 2008 -- "Rich people got it good in this country", said African-American comedian Wanda Sykes on the September 24 Tonight Show with Jay Leno. "We refuse to let them not be rich. Think about it. Broke people are about to bailout rich people. This is what is going on."

"And they want no oversight. $700 billion dollars and no oversight! No oversight? Why should we? I want receipts dammit! What do you mean no oversight? Because, oh, you're so good with the other money?"

"This is the biggest piece of garbage ever. You know what? It's welfare for the rich...

A conversation between Eric Hobsbawm and Marcello Musto. Posted at Links International Journal of Socialist Renewal with the permission of Marcello Musto.

By Dick Nichols

September 20, 2008 -- “Will my superannuation [pension] fund be next?” “Are my savings safe?” As working people in the developed economies watch the assets of one financial institution after another vaporise into nothingness, tens of millions are asking these dreadful questions.

Yesterday’s AAA assets are now junk and yesterday’s “risk-free” investments are losing money. No-one, not even the world’s central bankers, who are spending sleepless nights arranging rescue bailouts and emergency injections of trillions of dollars into a financial system frozen with fear and distrust, can answer them with 100% certainty.

By Ian Angus

August 24, 2008 -- Will shared resources always be misused and overused? Is community ownership of land, forests and fisheries a guaranteed road to ecological disaster? Is privatisation the only way to protect the environment and end Third World poverty? Most economists and development planners will answer “yes” — and for proof they will point to the most influential article ever written on those important questions.

Since its publication in Science in December 1968, “The Tragedy of the Commons” has been anthologised in at least 111 books, making it one of the most-reprinted articles ever to appear in any scientific journal. It is also one of the most quoted: a recent Google search found “about 302,000” results for the phrase “tragedy of the commons”.

For 40 years it has been, in the words of a World Bank discussion paper, “the dominant paradigm within which social scientists assess natural resource issues” (Bromley and Cernea 1989: 6). It has been used time and again to justify stealing indigenous peoples’ lands, privatising health care and other social services, giving corporations ``tradable permits'' to pollute the air and water, and much more.

July 15, 2008 --The planet is facing a meltdown -- from the global financial system to the unprecedented environmental crisis. Almost everyone from stockbrokers to scientists to economists agree the situation is dire.

Yet Wall Street banks are given hundred-million-dollar bailouts, while millions face home foreclosures. In the Third world it's worse -- crops are used to provide fuel for thirsty rich-world SUVs, while 100 million more people face starvation due to the growing food crisis. The disregard for the hardship of the majority has seen food riots and strikes hit over 30 countries.

A report of the Institute of Globalisation and Social Movements, Moscow

By Vasily Koltashov

Translated by Renfrey Clarke, Links – International Journal of Socialist Renewal (http://links.org.au)

Moscow, June 9, 2008 -- In the early weeks of 2008 virtually all Russian and foreign experts viewed the situation in the world economy favourably. Warnings from a few analysts that a major economic crisis lay ahead were not taken especially seriously by optimistic-minded populations.

On January 22 the stock exchanges were shaken by the first slump, followed by a series of new collapses. The world’s share markets were destabilised. Inflation accelerated, with food prices beginning to rise sharply. A number of American and European banks announced colossal losses in their results for 2007. The scale of the economic problems in the US became evident. A new world crisis had begun. The emergence of its first symptoms provoked numerous questions concerning the nature of the crisis, the reasons behind it, and the logic shaping its probable development.

By John Riddell

‘Nobody knows where the toxic debt is buried and how much there is’

John Bellamy Foster is editor of the Monthly Review, a prominent political journal established by the Marxist economist Paul Sweezy in the 1940s.

Foster is a professor of sociology at the University of Oregon in Eugene, USA. He has written widely on political economy and has established a reputation as an environmental socialist.

He has proven that Karl Marx was a radical ecologist in his book, Marx’s Ecology: Materialism and Nature.

Foster is interviewed by Peter Boyle for Links - International Journal of Socialist Renewal and Green Left Weekly. It was conducted during the Climate Change Social Change conference in Sydney, April 11-13, 2008.

The written version of the interview is available at Green Left Weekly.