The life of monopolistic capitalism in our time is a chain of crises. Each crisis is a catastrophe. The need of salvation from these partial catastrophes by means of tariff walls, inflation, increase in government spending, and debts lays the ground for additional deeper and more widespread crises -Leon Trotsky, The Living Thoughts of Karl Marx
2009 ended the way it began, with millions of workers losing their jobs, factory closures, and mass youth unemployment, while Wall Street bankers, thanks to the massive government intervention, made billions of dollars from working-class taxpayers. Their bonuses alone will reach a record $129 billion for the year, while real unemployment (almost 20%) remains at levels unseen since the Great Depression.
Financier George Soros said recently that the banking establishment is benefiting from the liquidity created by the government (almost $18 trillion in bailouts globally) and low interest rates, in order to make billions in profits. But this is not from investing in industry but from speculation in short-term bonds, shares, commodities, and currencies.
These rich CEOs are creating another financial bubble. Just like the one that led to the crisis in 2007. Until these criminals are stopped, workers and the poor face a new round of cuts and layoffs. Big business is intent on unloading the crisis of capitalism on the backs of workers and youth. The Economist, in its forecast for the next decade, warned that mass structural unemployment will become the new normal.
Despite Obamas pleas and illusions, while the capitalist system remains there is no way to control the financial industry or stop their sociopathic behavior. Financial capitalism has grown to become a giant parasite on the world economy that destroys jobs, lives, and the environment in its pursuit of short-term profits. The banks, Wall Street, and the commanding heights of capitalism have been able to hold the rest of the economy hostage, requiring trillions in state assistance while the destruction of manufacturing jobs and cuts in city and state services continues to bite, and credit dries up.
This is not some kind of abnormality, as some progressives like to imagine. It is the very essence of the functioning of a decaying, deteriorating system of capitalism. On the one side, there is a huge need to urgently raise living standards and develop new technologies for energy and transportation to provide millions of new, living-wage jobs and end the carbon-based destruction of the environment. However, on the basis of capitalism, this can only be done if there is private profit in it. If its not profitable, then they wont do it. Instead, there will continue to be huge layoffs, poverty wages, and continued mass unemployment because of the 30% excess of productive capacity compared to demand in virtually every sector of industry and construction.
Because of their control of the corrupt political system, the barons of financial capitalism are planning to use both political parties, which they finance and control, to make workers and the poor pay for the crisis of their system through massive job losses and cuts in health care and education.
Justice argues big business and capitalism will always put their profits before any other consideration, even the future of our planet. In order to prevent a future of mass unemployment, poverty, and climate change it is necessary to take the commanding heights of the economy and finance under the democratic management of elected representatives of the workers and the general public. This would make possible democratic planning in order to put the needs of the population before the profits of big business and allow the majority of people to be involved in decision making about jobs and protecting the environment.
On the basis of democratic socialist policies, there could be massive investment in renewable and sustainable energy resources, an integrated public transportation system and a green job creation program to clean up the environment. Millions of workers and young people could be employed again producing goods and services that are urgently needed like retooling manufacturing, developing new technologies and alternative energy sources for electricity and transportation. This would be a far better investment than the trillions given to the bankers and speculators who continue to pillage the economy.