The Economy

The Poverty of Capitalism

Unemployment LineThe effects of the Great Recession continue to unfold with a vengeance in spite of a “formal” recovery. The unemployment rate is still hovering at over nine percent. Since the beginning of 2007, the number of households relying on food stamps has nearly doubled to 21.4 million.  It therefore comes as no surprise that the number of people living in poverty in the United States has reached a rate of 15.1 percent, which is the highest level seen since 1993. Black and Latino workers have been hit the hardest, given capitalism’s long history of institutionalized racism. Blacks have a poverty rate of 27.4 percent and Latinos have a poverty rate of 26.6 percent.

“Governments Don’t Rule the World; Goldman Sachs Rules the World”

In an interview which shocked the BBC News anchor, “independent trader” Alessio Rastani gave a very frank appraisal of his perspectives for the world economy. “This economic crisis is like a cancer; if you just wait and wait hoping it is going to go away, just like a cancer it is going to grow and it will be too late,” he said, adding that governments would not be able to fix the economy.

Can the Gold Standard Save Capitalism?

Gold BarsRepublican presidential candidate Ron Paul, among others, has advocated a return to the gold standard for U.S. currency. He is worried about inflation and the continued devaluation of the U.S. dollar. Capitalist politicians like Paul claim if only the dollar were fixed to the price of gold, all would be well in the economy. This actually brings up several questions. Such as, what is money in the first place? Is American money, since it is “not backed by gold,” worthless?

What Does the Bi-Partisan Debt-Ceiling "Compromise" Mean for Workers?

Debt Ceiling DebateA deal to raise the debt ceiling has now been reached, after weeks of incredible fear-mongering on the part of both bosses’ parties and Wall Street, and will reach the President’s desk by the deadline on August 2nd.  The contents of the final agreement remain rather vague, but the broad outline is enough to make clear what it means for workers in the U.S.  Did it have to be this way? Why didn’t the Democrats put up a fight?