Nearly fifty years ago, Ted Grant wrote a major article called ‘Will there be a slump?’ in which he outlined the underlying reasons for capitalist crisis and why it would keep happening – a controversial statement during the period of the post-war boom. This article from 1960 remains as relevant today as ever, given the world recession which has thrown the economies of the world into chaos.

It makes your blood boil!  The only good news to come out of the UK budget announced by New Labour Chancellor Alastair Darling last week was the slight increase in tax rate that would now be levied on those earning more than £100,000 a year.  The rate was being raised from 40% to 50% to help raise a little more money from those who have benefited most from the credit binge that has now gone bust around the world.But what a barrage of criticism and rage has erupted from the great and good and from the news media on Darling’s action.

The budget figures show starkly how desperate is the position of the British economy, faced with what Darling called the ‘worst global economic turmoil’ in living memory. The amount the economy will shrink has been revised to a record 3.5% fall this year, the biggest drop since the Second World War.