Magazine of Socialist Action in Australia

Capitalism is not working!

The bubble has burst for capitalism. All over the world stock markets are in shock and commodity prices are falling. Despite interest rates being lowered, banks are reluctant to loan money and this will seize up the real economy.

A recession has begun in the US and Europe. It is inevitable that a recession will also follow in Australia.

For years workers were told that socialism was dead and that capitalism was the only reality. Now the confidence of the sharks in the financial sector and their media friends has been shattered.

In panic the Federal government have handed over $10 billion in the hope we will spend it all and boost the economy. In reality much of this money will go to pay our debts and basic bills.

To “boost” the economy we need to take it out of private hands. Even with low interest rates, banks will not lend to business as they are fearful of not getting their money back in this new economic period.

A nationalised banking system can financially support an economy where the main levers are in public hands. Elected committees at workplace level, linked to local, State and Federal socialist governments can jointly work out an economic plan.

The Socialist Party condemns the greed and the logic of a system that built up trillions of dollars in paper – now worthless wealth – while billions lived on less than $1 a day. Now millions more will be pushed into poverty.

Our alternative is simple. Capitalism should be replaced by a socialist, democratically-planned economy. The banks and major companies should be controlled by the workers and co-ordinated by an elected socialist government.

The wealth of society, when owned by the people and under the control of the people, can be directed away from speculation and into socially-necessary spending to massively boost public transport, education and health.

International co-operation between socialist states could begin to drag up the living standards of all. It’s easy today to be an anti-capitalist – the challenge is to organise to build a socialist alternative.

By SP reporters