CAPITALISM IN CRISIS

Capitalism in Crisis

It is clear as we enter an indefinite period of ‘austerity’ (i.e. cuts in social services, redundancies, wage cuts, and rising taxes) that capitalism has failed as a system, even on its own terms. For a while the true nature of the system is exposed more clearly for all to see: the so-called wealth generators, the capitalist class, are actually exploitative opportunists, who in collusion with the state are making the working class pay the costs of the crisis which was not of their making. The working class, the overwhelming majority in society, is made up of not just those in paid employment, but all who do not own or control the means of production. That includes the unemployed, pensioners and students.

The current crisis of capitalism is not down to a handful of irresponsible ‘bankers’ making dodgy decisions; it is a crisis of the system as a whole. Capitalism operates according to a trade cycle that involves periods of full production alternating with recessions i.e. ‘boom and bust’ are inherent and unavoidable features of capitalism. In a recession under capitalism, economic logic dictates that much of productive capacity is left idle and workers are made redundant. Nevertheless, the perverse logic of capitalism not withstanding, it is technically within society’s power to provide constantly enough for all and that unemployment and poverty are unnecessary evils because the means are available to overcome them. Yet the lives of millions under the prevailing capitalist system are at the whim of abstract market forces, which take on a life of their own and cause hardship and misery all over the world.

There is, however, an alternative to capitalism. It involves appropriating the means of production into the hands of the majority of society in order to meet human needs rather than to satisfy a tiny wealth owning class’s desire for profit. The alternative is called socialism.