-------------------------
Via Workers World News Service
Reprinted from the Aug. 22, 2002
issue of Workers World newspaper
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A UNITED FIGHT-BACK OF WORKERS AND OPPRESSED:
THE ONLY SURE-FIRE SOLUTION TO ECONOMIC CRISIS
 
By Fred Goldstein
 
The economic news coming out of the big-business media is
full of trepidation about the prospects for another downturn
in the U.S. economy, which could in turn tip worldwide
capitalist stagnation into a global recession, if not
depression.
 
To be sure, the current reports coming from the U.S.
capitalist government's economic reporting agencies run from
negative to ambiguous. But Marxists know that the bosses
themselves do not know, and cannot know precisely at any
given time, whether or not their own economy is headed for a
major downturn or not.
 
They spend enormous sums of money collecting and analyzing
economic data. Yet it is in the nature of the profit system
of capitalist exploitation, and its modern form,
imperialism, that they cannot know about a recession until
after the fact.
 
That is because capitalism is driven by groups of
billionaires who own the massive means of production, who
meet behind closed doors, in secret from each other and from
the masses of the world, to hatch their plans for
production, based on each grouping's intent to maximize
future profit.
 
Furthermore, even as they see the signs of a downturn, with
government intervention they may be able to forestall it--
but they cannot prevent it.
 
RECESSION OR SLOW GROWTH--
WORKERS ARE HURTING
 
Whatever the immediate future holds, the present economic
situation adds up to increasing hardships on the working
class. This poses the urgent need to prepare and organize a
class-wide fight back.
 
On Aug.11, US Airways announced its intention to file for
Chapter 11 bankruptcy. The sixth-biggest airline in the
country has negotiated concessionary agreements with the
unions under the shadow of preparing for this bankruptcy.
Now it is heading toward massive layoffs under its so-called
reorganization for "profitability."
 
Two days later American Airlines announced layoffs of 7,000
workers as part of its reorganization for profitability,
after showing huge losses. Six airlines have filed for
bankruptcy and protection, laying off close to 100,000
workers, in the past year.
 
This problem preceded Sept. 11. The reason is a decline in
profits due to over-capacity: too many seats available for
the market.
 
Louis Uchitelle wrote in the Aug. 11 New York Times that the
Commerce Department has issued new figures on wages and
salaries indicating overall "stagnation" and a downturn for
the workers. The stagnation, as he calls it, "results not
only from meager wages, but also from cutbacks in hours, the
disappearance of nearly 1.7 million jobs since March 2001
and the rise in the unemployment rate, which now stands at
5.9 percent."
 
In the year after the fourth quarter of 2000, "$94 billion
in pay disappeared, with $9 billion recovered in a mild
rebound so far," Uchitelle continued.
 
By the numbers, this means that the working class as a whole
lost $85 billion in pay in the last year and a half. And
during the so-called recovery, the bosses are trying to
protect their profits by holding wages and hours down,
shifting health-care costs to the workers, and layoffs.
 
On the question of health care, an area in which the profit
system vitally affects the workers and their families, the
consumer advocacy group Families USA estimated that in the
last year more than 2 million families lost their health
insurance, bringing the number to 41 million. (New York
Times, Aug. 12)
 
And those who still have health insurance faced 11-percent
rate increases last year, much of which was passed on to the
workers by the bosses. Workers face a 13-percent increase
this year.
 
This intolerable burden loaded on the workers by the profit-
gouging health-insurance giants and bosses who won't pay is
one of the most vicious aspects of the modern, high-tech
economy. With all its modern drugs, medical instruments and
diagnostic methods, health care is run on a for-profit
basis, only used to treat those who can pay or have
insurance.
 
Hunger is another indicator of the growing poverty caused by
low wages, unemployment, under-employment, high housing
costs and all the other methods the capitalists have of
reaping profits and keeping the working class down.
 
This was underscored in a report by the New York City
Coalition Against Hunger. The report indicated that "more
than 1 million city residents depend on hard-pressed food
pantries and soup kitchens for their basic needs." (New York
Times, Aug. 9)
 
In the very shadow of Wall Street where trillions of dollars
are traded back and forth every day--in the financial center
of the great free-enterprise profit system where the lords
of capital rake in the profits wrung from the peoples of the
world--exploitation and oppression keeps one in every eight
people dependent on food aid just to survive.
 
BUILD A MULTINATIONAL,
WORKING-CLASS FIGHT BACK
 
There are many examples that show how the growing crisis of
capitalism is already a menace to the workers and the poor,
and how it falls most heavily on Black, Latino, Asian,
Native and Arab peoples, and immigrant workers especially--
the lowest paid and least protected.
 
But the most important conclusion that can be drawn from all
the statistics and warnings is that a mighty fight-back must
be organized. The Bush administration has adopted a program
of war, racism and repression as Washington's answer to the
developing crisis.
 
Bush, with the compliance of the entire capitalist media,
has demonized Saddam Hussein, conjured racist images of
Middle Eastern peoples and Islam, declared that it is the
right of the Pentagon to go any place, any time to intervene
in any oppressed country on the phony grounds of the "war
against terrorism."
 
Bush, who together with his brother--Florida Gov. Jeb Bush--
and the Republican Party apparatus stole the election
through the wholesale racist exclusion of Black voters, has
promoted racism at home and abroad to divide the people,
justify repression and prepare for war.
 
The first step in organizing a united struggle against the
real enemy, the rich bosses, is for white workers to give a
firm rebuff to racism and for all workers to reject super-
patriotic chauvinism.
 
What is needed is to force the bosses and their government
in Washington, including the pro-big-business, racist
Democratic Party leadership, to declare that the working
class is legally entitled to every single penny that they
put into their pension funds. These funds represent
trillions of dollars in wages in the form of the future
consumption funds of workers and their families.
 
Just because millionaires and billionaires gambled with
those funds does not change the fact that if they don't
return what they owe the workers, it is plain theft-hundreds
of millions of hours of labor worked for nothing.
 
The labor leadership, instead of preaching about finding
"responsible corporate leadership," should concentrate on
mobilizing to recover what legally belongs to the workers.
The AFL-CIO should never have abandoned the fixed-benefit
pension plans to begin with and agreed to the financiers'
401(k) gambling scheme. But now it is time to make up for it
by mobilizing to make the rich and the government return the
workers' hard-earned wages recklessly squandered by brokers
and investors in the Wall Street casino called the Stock
Exchange.
 
It is high time to demand free, quality health care for all.
It is time to assert that food is a right. That a job is a
right. That affordable housing is a right. It is time to
build an independent multinational working-class movement to
meet the capitalist crisis head on--not to be afraid to
oppose the war; not to be afraid to fight racism, to raise
women's rights, lesbian, gay, bi and trans rights, the
rights of immigrant workers, or in general represent the
oppressed and exploited.
 
Such a movement would be based on the common recognition
that the working class is the fundamental class in society
because it has created all the wealth. It must resist being
forced to bear the brunt of a crisis brought on by the mad
speculation and wild investment schemes of the financial
aristocracy and the billionaire magnates of industry.
 
CAPITALIST PROFIT SYSTEM
AT ROOT OF PROBLEM
 
If the economic crisis deepens, there will be a host of
solutions offered to solve it. But the truth is that
capitalism cannot be cured of crisis.
 
The tendency for the economic system to fluctuate through
cycles of boom and bust, more or less severe, bringing
unemployment, misery and dislocation to the mass of the
people, is inherent in the system of private property in the
means of production-capitalism.
 
A most popular and appealing solution to the crisis is to
have the capitalist government spend money to put buying
power in the pockets of the workers and for businesses to
raise wages and thus keep them going. To be sure, wages
should be raised and workers should fight for benefits and
social services from the government to get relief from the
hardships imposed by capitalism. But this will not, and
never has, been able to stave off a capitalist crisis, even
during the Great Depression of the 1930s.
 
This "solution" is based on the under-consumption theory.
According to this theory, the crisis is caused by production
outstripping consumption under capitalism. It is indeed
inevitable that production outstrips consumption under
capitalism, and this precipitates a crisis. But this does
not explain the inevitability of the crisis--it is merely a
description of it.
 
The contradiction between consumption and production, which
results in overproduction and a glut of commodities that
cannot be sold, is rooted in the anarchy of production, not
in consumption. What appears as a crisis of consumption
originates in capitalist production.
 
Anarchy of production is inherent in capitalism. Ruthless,
often violent, competition is an absolute law of capitalism.
The plans of the capitalist monopolies are not made for or
by the capitalist class as a whole or for society as a
whole. They are made by separate groupings of finance
capitalists in struggle against each other and against all
their imperialist rivals abroad.
 
Each grouping plans on the basis of expanding its own sales
and profits. Each grouping races to the scene where a profit
can be made to try and conquer market share and garner
maximum profit. There is no stopping them from competing to
build capacity in anticipation of future profits.
 
By the same token, when the market is glutted with
commodities because this feverish competition has produced
vast overcapacity and prices and profits begin to fall,
nothing will compel them to continue investing.
 
The crisis of consumption and the anarchy of production are
absolutely inevitable outcomes of the profit system-the
private ownership of the vast, socialized, interconnected
system of global production by a tiny handful of
billionaires who have no connection with the actual creation
of wealth. It is the international working class and
peasants that actually create the wealth of this world with
their sweat and toil.
 
The only way to overcome this contradiction is for the
workers to abolish private property, take over the economy
and run it for human use, not for profit--that is, by
creating socialism.
 
- END -
 
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