En Passant

The recent swings in world financial markets and the growing international effects of an economic slowdown in China have raised fears in the U.S. that the economic recovery could be on its last legs–even before working people felt like they had escaped the last crisis. And what will come next? In the first instalment of a three-part series, Lee Sustar in Socialist Worker US answers questions about the underlying causes of the instability in the markets–and explains how the troubles in the world economy today are tied to the same problems that led to the Great Recession of 2007-09.

Ben Hillier has written an interesting article in Red Flag about the Australian economy. He starts off by saying:

Australia’s 23-year economic expansion is unprecedented for a developed country. In the 21st century, growth has been underpinned by property and mining investment booms. The latter is now over, the former reaching its limits.

He also says:

The economy is undergoing transitions, internally and in relation to the rest of the world, but what exactly it is transitioning to is far from clear. The only thing that appears certain is that life is set to get harder.

Maybe the combination of working longer hours for the boss, of seeing Gina Rinehart treble her wealth while workers on the minimum wage get a paltry $17 a week increase, of being in insecure employment, of unemployment being higher than official figures suggest, of seeing household prices increase faster than wages, of the bosses having it all their own way in the one sided class war, maybe these things are contributing to a general sense of unease and anger which no amount of spin from Gillard and others is going to placate.

Many factors are driving the worldwide market mayhem, including the fiasco in Washington over raising the U.S. government’s debt ceiling and the spreading “sovereign debt crisis” in Europe.

But looming behind them all are the deep-seated weaknesses in the world economy more than two years into the “recovery” following the Great Recession–and the failure of the responses to the crisis by the U.S. and other powerful governments.

While the GFC created uncertainty, it did not create mass unemployment in Australia. It did however make Australian workers even more defensive.

A defensive and uncertain workforce accepts the dictatorship of capital unquestioningly.

I am a fairly excitable person. I can mistake the moment for the month; the ephemeral for the eternal. But I am not alone there. Capitalism regards itself as immutable,as something that will exist forever.  It mistakes now for the future and ignores the contradictory dynamics contained within the system. It also views the past through […]

It is a joy to see the Liberals descending into complete rabbledom.  But remember; Labor a few years ago was the same. Politics without power for capitalist parties is frustrating. This is especially so for the conservatives – the first eleven of capital. When the second eleven are winning all the games it is not unreasonable […]

Tom Bramble has a long discussion piece online at Socialist Alternative about the world economy.

The U.S. economy, while almost certainly growing, remains mired in difficulties as workers continue to face downward pressure on their standard of living.