Economy

One issue that has been sidelined during this general election has been the scandal of low pay in Britain. For decades, pay has stagnated whilst profits have soared. Britain needs a pay rise! Britain needs a revolution!

Once 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.

In the second part of his article on the “organic crisis of capitalism”, originally published in the In Defence of Marxism magazine, Rob Sewell examines how capitalism has become an enormous barrier to the development of the productive forces, offering nothing but “secular stagnation” and permanent austerity.

In this recent article from the In Defence of Marxism magazine, Rob Sewell – editor of Socialist Appeal – looks at the current economic crisis, outlines the global economic perspectives, and explains what is meant when Marxists define this as an “organic crisis of capitalism”.

In April 1961, Yuri Gagarin, the Russian cosmonaught, became the first person in space. Flight, and later space travel, were once viewed as an indication of humanity’s progress and ability to overcome even the most enormous of obstacles. But the recent explosions of two private space ventures demonstrate the barrier that capitalism has become in our exploration of the stars.

Tectonic shifts are taking place in the world economy. The price of oil has fallen dramatically in the past six months. The price of Brent Crude has now fallen to less than $60 a barrel. This marks a near fifty per cent drop in price from $115 a barrel in June. It heralds a new stage in the capitalist crisis, and its impact is being felt throughout the world.

Behind the gloss of various superficial measures introduced by George Osborne in his 2014 Autumn Statement on Wednesday 3^rd December lay a far grimmer message for the vast majority of ordinary people. The real story of Osborne’s statement is the warning of what lies ahead after the next election: years more of austerity and deep, savage cuts.

“Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy.” Such ominous statements may sound familiar to our regular readers. However, these words are not those of a Marxist, but of the British Prime Minister, David Cameron, expressing his deep concerns about the state of the world economy.

A few years ago, Mario Draghi, President of the European Central Bank, stated he would “do whatever it takes” to save the euro and restore growth. However, while the euro has stabilised, temporarily, the European crisis has certainly deepened. This time it is threatening to plunge the European Union into the nightmare of a Japanese-style deflation.

In July of this year, George Osborne, the British Chancellor, announced that the UK economy had finally recovered and reached its pre-crisis level. But the so-called “recovery” has been anything but that for the vast majority of people. Meanwhile, dark clouds are forming on the horizon, threatening to plunge the world economy into an even deeper crisis.

This year’s Rich List, published by the Sunday Times, shines a spotlight on the reality under capitalism: whilst millions of ordinary workers and youth face a future of austerity, the super-rich continue to see their wealth increase. Felix Lighter reports on the latest evidence for the “trickle up” economics under capitalism.

Thomas Piketty, a French economist and academic, has become an overnight sensation thanks to his book “Capital in the Twenty-First Century”, a bestseller that has sparked debate on all sides for its detailed analysis of inequality under capitalism, with elation and praise from the reformist left, and horror and fright from the free-market right. Adam Booth takes a look at the response to Piketty’s Capital.