Economics

Growth in the G7 ‘Great Stagnation’ will be slower than in the Great Depression

27th July 2017 Socialist Action 0

The following article by John Ross, examining the current slow growth of the G7 economies, was previously published on Learning from China.

The Western G7 economies are in, and will remain locked in, very slow growth. How slow this growth is can be seen starkly by taking an historical comparison: the average growth in the Western economies in the entire period since the international financial crisis in 2008 will actually be slower than in the Great Depression after 1929!

After Trump’s victory China is the main strategic pillar for globalisation

21st November 2016 Socialist Action 0

The following article by John Ross, examining the significance of Donald Trump’s election for world trade, was previously published by Socialist Economic Bulletin.

Trump’s election as US President means 2016 is ending with a stark public contrast between the positions of China and the US on global trade. The US has its first president proclaiming support for protectionism since World War II, while China states its support for increased international trade and economic globalisation.

Pro-austerity monolith starts to fracture

9th May 2013 Socialist Action 0

by Nicky Dempsey

The near-unanimous support for austerity policies in the ruling classes of the main capitalist powers is showing signs of strain. This is not because there is some recognition of the social and economic damage from the crisis, nor because of the valiant level of social resistance in some countries, or even because of the entry of populist and other unpredictable parties of the right.

Marxism and under-consumption

4th August 2012 Socialist Action 0

By Tom O’Donnell

The current crisis is leading to a revival of interest in Marxism in general and in Marxist explanations of capitalist crises in particular. Even in Britain this occasionally reaches the commentary of the mass media. Unfortunately, the commentary is usually produced by non-Marxists who mangle ideas and reproduce only their own misunderstandings.

In particular, a persistent distortion of Marxist ideas is the notion that economic crises are caused by ‘under-consumption’. Under-consumption is the process where workers are denied the full value of their expended labour-power in the production of commodities, and so cannot consume all the commodities produced in any economy.

Two classes, two responses to the crisis

1st June 2012 Socialist Action 0

By Nicky Dempsey

Martin Wolf, the chief economics commentator for the Financial Times, has laid out a devastating critique of current government economic policy in Britain. In a widely-reported article titled ‘Cameron is consigning UK to stagnation’ he says it is a scandal that the government has cut its own investment, especially when it can in effect borrow for free, as real interest rates are at zero.

Photo by endiaferon

Europe’s economic crisis

19th May 2012 Socialist Action 0

By Jane West

As the Euro-crisis unfolds and Greece heads to new elections, the left party, Syriza is capturing the support of most of those in Greece who want to reject the austerity programme imposed by the EU.

It is striking that the impact of the world developments, and particularly the growth of the left in Latin America, has clearly interacted with this political leadership of resistance to austerity in Greece. It was recently reported in the Guardian, of Syriza’s leader, Alexis Tsipras: ‘one of his heroes is Venezuelan leader Hugo Chávez, with whom he shares the same birthday.’