Archive for the ‘Economics’ Category

by Jim Creegan

It is now increasingly apparent that the abrupt reversals of the Trump White House, emerging from behind a curtain of court intrigue, signal a major political shift. The white nationalist platform upon which the parvenu real estate mogul was elected in November seems in the process of being scrapped, plank by plank, in favour of a far more conventional rightwing Republican agenda, at home and abroad.

Far too often, Marxist political writing suffers from a conceptual gap. On the one hand, the bourgeois state is said – as a general theoretical proposition – to be an instrument of capitalist class rule. On the other hand, short to medium-term political events are analysed exclusively in terms of the pronouncements and deeds of political actors, momentary combinations, electoral moods etc., without regard to the interface between politics and class. No attempt is made uncover the particular pressures and influences through which the interests of the bourgeoisie are brought to bear.

In cases where politics flow through accustomed channels, the challenge is not daunting. Political parties and institutions are headed by individuals who either come from the ruling class themselves, or who are thoroughly venal and have undergone certain vetting procedures for class loyalty. The task of explanation becomes more difficult, however, when extraordinary convulsions – coups or insurrections in authoritarian regimes, or electoral upsets in democracies – put power in the hands of individuals and groups without long-established ruling class connections, and who may be hostile in important ways to the settled aims and practices of the bourgeoisie.

Hostile takeover?

Donald Trump is a case in point. Although himself a member of the ruling class, he entered the presidential primaries as an (more…)

Anwar Shaikh, Capitalism: Competition, Conflict, Crises, Oxford, Oxford University Press, 2016, £35.99; reviewed by Michael Roberts

Anwar Shaikh is one of the world’s leading economists who draws on Karl Marx and the classical economists (“political economy”, if you like). He has taught at New York’s New School for Social Research for more than 30 years, and authored three books and six dozen articles.1 This is his most ambitious work. As Shaikh says, it is an attempt to derive economic theory from the real world and then apply it to real problems. He applies the categories and theory of classical economics to all the major economic issues, including those that are supposed to be the province of mainstream economics, like supply and
demand, relative prices in goods and
services, interest rates, financial asset prices and technological change.

A classical approach

Shaikh says that his approach “is very different from both orthodox economics and the dominant heterodox tradition”.2 It is the classical approach as opposed to the neoclassical one. In other words, he rejects the approach that starts from “perfect firms, perfect individuals, perfect knowledge, perfectly selfish behaviour, rational expectations, etc” and then (more…)

Protest against NZ role in invasion of Vietnam: NZ imperialism has a long record of attacking other countries and their peoples

Protest against NZ role in invasion of Vietnam: NZ imperialism has a long record of attacking other countries and their peoples

by Phil Duncan

The poppies are out again.  We’re all expected to give to the RSA and to wear one of their poppies to show our respect for NZ combatants who died in wars abroad.  But it doesn’t really take more than a second or two of reflection about Gallipoli, the centrepiece around which war is recalled in NZ and poppies worn, before a couple of questions present themselves.

Why was New Zealand invading Turkey?

What was World War One about?

And there’s the rub.

Was Turkey an imminent threat?  Did it have weapons of mass destruction pointed at little ole New Zealand?

The truth, which seems unpalatable for far too many people in this country, is that NZ was the aggressor.  We were invading them in a war that was about (more…)

Philippe Poutou

by Marisela Trevin
April 10, 2017

It was as if an unspoken, mutually protective code of silence had been established among the candidates leading the polls in this year’s French presidential debates. Despite their scandal-ridden campaigns, against the backdrop of the collapse of the traditional French party system, neither Fillon, of the right-wing party The Republicans, nor Le Pen, of the far-right National Front, had been asked to answer to the multiple accusations against them regarding the misappropriation of public funds.

Piercing the bubble

Unlike the first debate, in which only five of the eleven presidential candidates had participated, the second debate on April 4 featured all of the candidates, including the New Anti-Capitalist Party’s Philippe Poutou, who made it a point to pierce the French political establishment’s bubble before millions of viewers, while expressing the need for a radical change in French politics and society.

Protest against the French social democratic government’s attacks on workers and youth rights (Photo by Aurelien Meunier/Getty Images)

Fillon smiled rigidly, then affected outrage and threatened to sue as Poutou exposed his hypocrisy. “Fillon says he’s worried about the debt, but he thinks less about the matter when he’s dipping into the public treasury,” he quipped. “These guys tell us that we need austerity and then they misappropriate public funds.”

Marine Le Pen was rendered speechless when Poutou addressed her own scandals, which had been widely covered by the media, like those of Fillon, but for which she had not been held accountable in the debates until then. “Then we have Le Pen. (…) She takes money from the public treasury as well. Not here, but in Europe. She’s anti-European, so she doesn’t mind taking money from Europe. And what’s worse, the National Front, which claims to be against the system, doesn’t mind seeking protection from the system’s laws. So she’s refused to appear before the court when she was summoned by the police.” When Le Pen replied “So in this case, you’re in favor of the police,” Poutou retorted “When we get summoned by the police, we don’t have workers’ immunity.” The audience burst into applause.

Contrast

The contrast could not be starker. On one hand, the political establishment’s rigid, highly-groomed candidates, stuck to their tired playbooks. On the other, a factory worker dressed in a (more…)

Last month, the Spanish parliament vote against a Royal Decree Law that sought to scrap the country’s port labour system. The decree put forward by the conservative Partido Popular (PP – People’s Party) government was voted down – 175 votes against, 142 in favor and 33 abstentions. Crucially, 32 of these abstentions came from the center-right Ciudadanos (Citizens) party that helps to prop up the minority Partido Popular government. This vote is the first time in nearly four decades that a royal decree has been rejected by the Spanish parliament.  This victory shows that workers can win, even in situations of high unemployment, right-wing governments and economic crises.  In fact, these are the very situations in which workers most need to win.  In NZ, meanwhile, the working class continues to fail to defend itself. 

by Santiago Lupe

The simple threat of a strike was enough to ensure the overturning of the anti-worker Royal Decree Law drawn up by conservative leader Mariano Rajoy. The “no” vote was not just a blow for the current Partido Popular government but also for the EU Court of Justice and its threat of sanctions.

One of the most concentrated, unionized and coordinated sectors of the labor movement has flexed its “muscle”, which this time round was enough to stop the parties of the post-Franco regime from voting for the “national interest” as they have done in the past. The threat of a strike was not only to have economical consequences – an estimated potential loss of 50 million Euros a day – but also political consequences. The flexing of this political “muscle” raised the specter of a big labor dispute taking center stage in Spain, one that could potentially recreate the solidarity and militancy of the Spanish coal miners’ dispute of 2012 and direct this at all those who voted “yes”. This is a scenario that the social-democratic Partido Socialista Obrero Español (PSOE – Spanish Socialist Workers’ Party) fears as it enters its worst crisis in recent history.

Class struggle is way to win

If anything, what this demonstrates is that – despite all the skepticism about social mobilization and all the illusions in “storming heaven” through institutional means – determined class struggle is (more…)

Price of Raytheon shares. Notice the big spike immediately following the missile attack. Source: New York Stock Exchange

by Phil Duncan

The US strike against targets in Syria seems like a slap with a wet bus ticket – it appears the US administration felt it had to do something in response to the use of chemical weapons by the regime again, but not too much.  While the strike will hardly frighten the Russians or Assad, it has been a nice little earner for weapons manufacturer Raytheon.

Raytheon, you see, makes the Tomahawk missiles.

And Trump had shares in Raytheon, (more…)