The Economy

Capitalism in Crisis: A Sinking Ship Without Any Lifeboats

dead endAs Adam Booth explains in this article, serious bourgeois economists can see a new world economic slump coming, which they have no way of averting, having already used all the traditional measures they would have adopted in the past, lowering interest rates, credit, etc. In these conditions any important event, such as a Greek default or a dramatic turn of events in the Middle East, can trigger an unraveling of all the pent up contradictions.

Capitalist Economy: Staggering From One Impasse to the Next

dollar comicOnce more, the world economy is dangling on the edge of a precipice. The crisis in Greece has again hit the headlines and threatens to drag Europe down with it. The days when capitalism could simply sail by without a care in the world have gone forever. As in the interwar period, the crisis of capitalism remains deep-seated and protracted.

The Organic Crisis of Capitalism

latuff-DasKapital“Where were the Marxists in 2008, when the demise of Lehman Brothers almost brought about the collapse of capitalism?” asks a puzzled Ralph Atkins, the capital markets editor of the Financial Times. Well, unlike Mr. Atkins and his coterie of free-marketeers, we were not in a state of total bewilderment. We had predicted such an eventuality. As capitalism plunged into a deep slump, we were explaining to an ever-widening audience that the crisis, which bourgeois economists denied could ever happen, was a stunning confirmation of the correctness of Marx’s ideas. These ideas, which had been repeatedly declared out-of-date by capitalist apologists, were shown to be shockingly relevant, in total contrast to bourgeois economic theory and especially the discredited efficiency markets hypothesis.

The Chinese Slowdown and the World Economy

china debt crisisNo market economy can avoid the laws of capitalism. As the growth in the US remains low and Europe is heading towards a slump, Chinese industry will lack markets for its goods. Productive capacity utilization in China is down to 70 percent overall compared with the also low level of 80 percent in the US. Combined with the immense mountain of debt which has been created by the government programs, the basis is set for destabilization of the economy.

The 1% and the 99%: Tiny Rich Elite Own Half the World's Wealth

monopoly-man-running-with-money-bagIn 2015, the rich are still getting richer and the poor are still getting poorer. This is the conclusion of a new report on inequality produced by Oxfam and based on data compiled by Credit Suisse. The report confirms that the richest 1% of the world’s population now collectively own 48% of all the wealth of the planet. By 2016, based on current trends, they will have over half—that is, more than the other 99% of us have put together.