‘FOUR YEARS INTO A TWENTY YEAR SLUMP’…

 

I’ve blatantly cribbed the following from another blog, a financial one, the sort of place where anarchists and other so-called ‘revolutionaries’ would never be caught dead-but I think it deserves a wider audience (if for no other reason than to subvert the information for proletarian ends). I freely admit this particular blog is populated by revolting capitalist libertarians, freemarket fundamentalists, racists, sexists, survivalists, ‘Goldbugs, Ayn Rand/Von Mises freaks, Tea-Party and NRA members plus the obligatory anti-semites, the sort of people who think the NHS is downright Bolshevism and that public sector workers are all leeching of ‘the taxpayer’ ; but it is also the ‘go-to’ blog for capitalist investors, traders, speculators and other such money-grubbing, individualist, parasites looking to make profits by ‘playing long’ or ‘selling short’- Never the less, it gets major news well before any of the mainstream news corporations, and spells out the current state of capitalist affairs across the world, through its analysis and its commentaries in much greater depth than you’ll find on the poxy BBC or any other service, and has more than once exposed  financial scandals well before professional journalists have had barely a sniff or an inkling …A great deal of what is written makes a hell of alot of sense, (even though there is a great deal of ‘City/Wall Street financial jargon and technical, economic terminology) despite the political slant, because it under-cuts the ‘official version’ of the crisis…and you won’t find that on any of the boring and irrelevent anarcho/leftist sites, dealing with ‘The Now’. So read on-

 

(The empasis’ in bold  are all mine)

‘But let me tell you why I believe we are  four years into a twenty year slump.  Because global capitalism has created a transnational, corporate welfare state which transfers wealth from taxpayers to a kleptocratic elite. It works like this:

Method 1: Taxpayers pay for not only the infrastructure on which the private sector depends, but also the state-funded research carried out by the military and public universities to develop technology such as the jet engine, the desktop computer, the internet, nuclear power and GPS. This technology gets handed over to the private sector, which proceeds to make vast profits from it. Then, even though the last 30 years have seen drastic and worldwide reductions in corporation tax and the top rates of income tax, the corporate kleptocracy evades taxes by hiding offshore up to £20 trillion of its profits (an amount equivalent to almost a third of annual global GDP), whilst governments cut spending and charities open food banks to provide for the victims of this criminality.

Method 2: Until their private sectors are able to compete globally, capitalist economies such as the US (from the 1830s till the 1940s) and Britain (from the 1720s till the 1850s), reject the free market and develop their economies through state intervention, using protectionism, subsidies and capital controls. The ruling elites in countries such as Japan, Singapore, Taiwan, France, Austria and Finland follow the lead of the world’s two biggest economies. Then, as soon as they have gained a competitive advantage, these beneficiaries of corporate welfare inflict market liberalisation on developing countries with disastrous effects. Thus, having increased by 37% between 1960 and 1980 as a result of interventionist economic policies, the GDP per capita of sub-Saharan Africa fell by 7% in the years 1980-2000, as countries which borrowed from the IMF were forced to cut spending, privatise their state-owned industries, deregulate their financial sectors and remove trade barriers. And at the same time that they were wreaking havoc in Africa, the free market prescriptions of the Washington Consensus were also failing in the developed countries, where average, annual GDP per capita growth fell from 3.1% during the 30 years before 1975 to 2.1% during the 30 years of neo-liberalism which followed.
But slowing GDP growth and stagnating median incomes didn’t stop wealth from being shovelled upwards ever more quickly. In the US for example, the 18 years preceding the 2008 financial crash was one of only two periods in the country’s history when the share of total income of the top 1% exceeded one fifth. The other was the 8 years before the Great Depression.

Method 3: Governments have to subsidise employers who don’t pay their employees a living wage. In the UK, for example, the government spends £23 billion per year on the tax credits it pays to working families. Then there’s the £4 billion per year in housing benefit given to households with at least one person employed. And, to keep wages low and its workforce compliant and insecure, the private sector needs an army of unemployed – again financed by the taxpayer. As Margaret Thatcher’s chief economic adviser in the 1980s, Alan Budd, admitted to The Observer in 1992:
“…………. the 1980’s policies of attacking inflation by squeezing the economy and public spending were a cover to bash the workers. Raising unemployment was a very desirable way of reducing the strength of the working class. What was engineered – in Marxist terms-was a crisis of capitalism which re-created a reserve army of labour, and has allowed the capitalists to make high profits ever since………..”

Method 4: Instead of retaining monopoly control of the money supply, governments allow private banks to create money, which is conjured up on a computer screen and used to speculate, fuel asset price inflation, pay bankers’ bonuses and create an endless debt spiral as more and more money has to be printed to enable the repayment of interest. Then, when the asset bubble finally bursts, governments have to spend trillions of pounds of taxpayers’ money to prevent the financial system from imploding and national economies from disintegrating. Finally, to add insult to injury, governments have to borrow what should be their own money back from the same banks to which they have given the power to create money out of nothing – and pay high interest rates because of an economic crisis which the banks themselves have caused.

And worst of all, while the beneficiaries of the corporate welfare state drain the global economy at the expense of taxpayers, the media organisations and politicians they own lecture the poor and unemployed, endlessly moralising about their fecklessness and lack of responsibility. In doing so, they only confirm what most people already know – that capitalist democracies really are the best that money can buy.’

 

 

THE RICH ARE OUR MISFORTUNE!

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3 Comments

Filed under Politics

3 responses to “‘FOUR YEARS INTO A TWENTY YEAR SLUMP’…

  1. Mark White

    I’m assuming that the website that you got the above from is Zero Hedge. In fact, a contributor to Zero Hedge copied it word for word from a discussion thread under George Monbiot’s last article on the Guardian website (31st July). I should know since it was me that made the comment. I don’t mind my comments being copied word for word but it would be nice if proper attributions were given.

    • Fair enough mate, well spotted and a great piece of writing. I meant to mention ZH, so that’ll teach me to blog while under the influence of cheese…

  2. Aidan

    Damn good piece of writing Mr White and well spotted Incubus.

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