The hangover The intoxicating US housing boom has come to an end. Now the economic hangover has arrived. What is likely, at the very least, is a prolonged crisis of the credit system. And as credit greases the wheels of capitalism this is no laughing matter for the capitalist class. The Federal Reserve has been doing its best to ease the pain—the pain for the investment banks, that is. Barkeep Ben Bernanke announced on March 11 that the Fed intends to generously fund the banks “rehab,” loaning them the incredible sum of 200 billion dollars in return for the...
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The 17th Congress of the Chinese ‘Communist’ Party was held back in October. It was five years since the previous one, so this is clearly not a decision-making body that determines how the party — and therefore the country — should be run. Rather it’s a rubber-stamp gathering that endorses what the CCP’s power-holders have already decided. The Central Committee is ‘elected’, but even that meets less than once a year, and it is the political bureau and its standing committee (nine men in dark suits) who really run things. The CCP has changed over the years. It now...
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The Tax Justice Network thinks that world poverty can be effectively tackled by reforming the international system of taxing profits so as to eliminate tax havens and tax dodging – “profit laundering” as they aptly call it – by capitalist corporations. This would make no essential difference. World poverty is not caused by corporations behaving badly. Their “bad” behaviour as identified and described by the Tax Justice Network is not bad from a capitalist point of view. It is normal, and in fact it is not possible to alter it – either by legislation or by appealing to the...
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The case of the ‘Rogue’ French Bank trader, Jerome Kerviel, underscores many observations about capitalism made by socialists. Most importantly, it shows how “social” capitalism has become. The more capitalism grows, the more connected we are to the actions of everyone else. If the accusations are true, one minor 31 year old French bank trader can cause the potential impoverishment of many. We are all tied together, and capitalist rugged individualism is an illusion. the scary fact is that while capitalism has bound us to each other, it is anti-social in it’s structure. This case also shows how capitalism’s...
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Jack London who was born on this day in 1876 is the subject of an article in this month’s Socialist Standard. Older editions of our journal have also examined London’s oeuvre, including The Iron Heel. This book was reviewed in February 1975 and from the introduction we learn that “Jack London wrote over fifty books in a short life. The majority were written in haste; they include childish trash, four or five first-rate novels, and a number of outstanding short stories. In most of his writing the chief idea in one form or another comes from a crude form...
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From the Lehigh University newspaper: In early August, representatives from Sands BethWorks appeared before the Pennsylvania Gaming Control Board to announce that the opening of the casino will be delayed from mid-2008 until early 2009. The delay is caused by a lack of steel available to construct the casino complex. The elaborate complex needs 16,000 tons of steel for construction. According to The Morning Call, the opening of the $600 million complex will be pushed into 2009 because demolition crews are having a difficult time plowing down the buildings that once made up the Bethlehem Steel Mill. Meanwhile...
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Mention of the name Adam Smith calls to mind the “invisible hand” of the market, free trade, even capitalism itself. And money makes this capitalist world go round. So the Bank of England’s decision to feature Smith’s face on its twenty-pound notes, starting this spring , certainly seems appropriate. The Bank’s Governor, Mervyn King, says that Smith reminds us of how “openness to trade with others” allows us to “seize opportunities to specialize” that result in higher “productivity, incomes and standards of living for citizens of all countries.” To drive this point home, the new banknotes will have an...
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A recent episode of the PBS program Now, broadcast nationwide in most states on 4/22/2005, announced gravely not only that “scientists are convinced our Earth is warming, and with scary consequences,” but also and even more gravely that “meanwhile industry funds a campaign to do nothing.” The program quoted Dr. Richard Alley, professor at Penn State University, a paleoclimatologist, one who studies the Earth utilizing data from glacier ice and ice sheets. According to Dr. Alley, our planet has on numerous occasions previously experienced a phenomenon known as “abrupt climate change.” His concern, and that of scientists whom the...
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Millions of human beings around the world are forcibly detained, their liberties removed by governmental authorities. Anyone who takes seriously the immediate potential for replacing capitalism with a world of real abundance and freedom knows already that the great majority of crimes are either crimes against property or involve the illegal trafficking of property – or are the likely direct result of living the -restricted and stressful life of a wage-slave. While there are those who justify the existence of laws on moral and ideological grounds, the defenders of the status quo must always argue their case referring to...
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Green without being Green
October 25th‘s New York Times contained a special full-color insert titled “Corporate Social Responsibility – Designing a Sustainable Future”. The introduction, given by the President and CEO of Business for Social Responsibility Aron Cramer, tells us that “Consumers are paying more attention to the sources of the food they eat and the safety of the products they buy for their children”, implores business to heed “a new urgency for business strategy integrate social and environmental impacts with opportunities”, and goes on to say “The most exciting chances to leverage business success for broad social benefit involve innovations that deliver...
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