Economy

Rob Sewell analyses the turbulence on the stock market over the past week, which has destroyed any illusions in the global economic ‘recovery’. This latest collapse is a harbinger of a new world slump.

In this editorial from the latest issue of Socialist Appeal, Rob Sewell explains the significance of Carillion’s collapse. The market and privatisation have failed. In the words of John McDonnell, the shadow chancellor, “the system isn’t working”.

Erin Maniatopoulou of the Norwich Marxists comments on the latest inequality figures from Oxfam, which left the Davos elite at the World Economic Forum without any defence for the rotten system they represent.

The collapse of Carillion has come as a shock to the company’s workers and the public who rely on its services. But it seems that Westminster politicians and City bankers were fully aware of the dodgy dealings going on at the construction and outsourcing giant. The failed firm is a damning indictment of the parasitic capitalist system.

A new report from Credit Suisse has confirmed that the richest 1% of the population owns more than half of the world’s wealth and is grabbing an ever bigger share of the pie every day, all at our expense. Jonathan Lees of the Leicester Marxists looks at the growing economic inequality under capitalism and discusses the need for a revolutionary way forward.

British capitalism is clearly in a parlous state. The miserable spurt of growth of a few years ago has completely run out of steam, leaving the UK in a disastrous position. All the economic forecasts from the top institutions for the coming period have been downgraded from those of a year ago. Rob Sewell examines the ominous perspectives for the British economy.

The lack of any major announcements in this year’s Budget, delivered yesterday by the chancellor, Philip Hammond, reflects the insoluble web of contradictions that now entangle the Tory government. Adam Booth analyses the chancellor’s latest Budget statement and the impossible position facing May, Hammond, and the Tories as they seek to defend the broken capitalist system.

Whilst the representatives of the rich – the modern “robber barons” – brag and boast of a “second Gilded Age”, the rest of us are consigned to worse prospects than previous generations. Steve Jones reports on the latest eye-watering inequality statistics, which show that things are clearly not getting better for the 99%.

Amidst all of the Brexit chaos and Tory disarray, the Office for Budget Responsibility has sent a shockwave through British political and business circles with its latest economic forecasts – and, in particular, its sobering analysis about the persistent problem of low productivity in the UK. Josh Holroyd looks at the interminable problems facing British capitalism and its Tory representatives.

Bombardier workers in Belfast are facing a bleak future after the shock announcement last week that the US government intends to impose a massive tariff of 219% on each Bombardier-made plane sold to American airlines. This “American First” move by President Trump has exposed the reality of the so-called “special relationship” between American and Britain, damaging Prime Minister May and threatening thousands of jobs.

Ten years ago today, on 14th September 2007, Northern Rock customers were forming long angry queues outside the beleaguered bank’s branches. It would turn out to be an historic turning point. Within a year, the whole world financial system was teetering on the verge of collapse, and together with it, the capitalist system. Rob Sewell analyses the beginning of the Great Recession, one decade on.

For all of Theresa May’s strong words about taking on the “excesses and irresponsibility” of the “fat cat” bosses, it is clear that the Tories are still very much in the pocket of big business and are unwilling to fight against the scourge of low pay and low productivity. Instead, we see hand outs for the rich and wage cuts for the rest.