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Wall Street Crash Hits the Underbelly of Global Capitalism
- SUKOMAL SEN,
General Secretary, TUI of Public & Allied Employees
[A PAPER SUBMITTED FOR THE SEMINAR – GLOBAL ECONOMIC CRISIS
& WORKING CLASS HELD AT COLOMBO ON 8 NOVEMBER, 2008]
Global
Capitalism submerged in a grave crisis has started shivering.
“Staring into
the abyss” was the apt summing up of the ‘wide-spread
despondency’ that hit the headlines of The Daily Telegraph of
London date line 30 September’08 quoting the German Finance
Minister, Peer Steinbrack, just two weeks after the nightmare
struck the Wall Street, the nerve centre of US economy on 15
September’08 sending shivers down the economic spines of the
entire world.
As the biggest
stock broker company of the world Merrill Lynch collapsed like a
house of cards followed by crashing of a number of financial
giants in US including the largest Insurance company of the
world AIG, the US print and electronic media in one voice
described the event as the biggest economic crash signaling a
tortuous daylong economic recession after the biggest and
longest ever economic crash and recession that engulfed the
entire capitalist world in 1929.
With the Wall
Street collapsing and the bailout plan of $700 billion
initially,then some more billions of US dollars by the US Govt
failing to touch even the fringe of the deepening crisis with
Dow-Jones in USA, FTSE in UK and all other European and Asian
stock markets suffering the largest ever points fall, wiping out
1.2 trillion US stocks, banks toppling like dominos, has set the
world capitalism in deep convulsion.
Recapitulating the 1929 Great Depression
Let us recall
the Great Depression which began in 1929. But July 9, 1932 was a
day Wall Street would never wish to relive. The Dow Jones
Industrial Average closed at 41.63, down 91% from its level
exactly three years earlier. The nation was in the grip of what
the then U.S. Treasury Secretary Ogden Mills called "the
psychology of fear." Industrial production was down 52% in three
years; corporate profits had fallen 49%. Banks had become so
illiquid, and depositors so terrified of losing their money,
that check-writing ground to a halt. Most transactions that did
occur were carried out in cash.
Just eight days before the Dow hit rock-bottom, a prominent
investor Benjamin Graham of that time -- published "Should Rich
but Losing Corporations Be Liquidated?" It was the last of a
series of three incendiary articles in Forbes magazine in which
Graham documented in stark detail the fact that many of
America's great corporations were now worth more dead than
alive.
More than one out of every 12 companies on the New York Stock
Exchange, Graham calculated, were selling for less than the
value of the cash and marketable securities on their balance
sheets. "Banks no longer lend directly to big corporations," he
reported, but operating companies were still flush with cash --
many of them so flush that a wealthy investor could
theoretically take over, empty out the cash registers and the
bank accounts, and own the remaining business for free.
Strikingly, today's conditions bear quite a close resemblance to
what Graham described in the abyss of the Great Depression.
The facts testify to the wholesale destruction of the stock
market's faith in the future. And, as Graham wrote in 1932, "In
all probability [the stock market] is wrong, as it always has
been wrong in its major judgments of the future."
According to many, the present crisis is graver than that of
1929.
Wall Street Crisis is a crisis of every street of the world –
Severely hitting the working class and the poor – how UNO and
ILO think about it.
Twenty million jobs will disappear by the end of next year as a
result of the impact of the financial crisis on the global
economy, a United Nations agency said on Monday.
Construction, real estate, financial services, and the auto
sector are most likely to be hit, according to the International
Labour Organisation's (ILO) estimate, which is based on
International Monetary Fund projections for the world economy.
The toll on jobs could be even higher if IMF economic
projections are cut, said ILO Director-General Juan Somavia.
"We have to talk about the financial crisis in terms of what
happens to people and what happens to jobs and enterprises," he
told reporters.
Somavia said the ILO, which brings together governments,
employers and workers, wanted to steer discussions about the
resolving the crisis towards job creation and other steps to
promote the "real economy."
"It would be tragic to respond to a sub-prime crisis with
sub-prime policies," he said.
He said resources should be pumped into the economy to stave off
or mitigate recession, concentrating on employment-intensive
sectors including small enterprises. The financial sector should
also be steered back to its fundamental function of lending to
entrepreneurs, according to the Chilean lawyer and diplomat.
Somavia said the financial sector's share in the profits of U.S.
companies had risen to 41 percent last year from 5 percent in
1980. As a result, banks preferred to invest in financial
transactions rather than lending to other productive sectors.
"So this system began to siphon off resources from the real
economy process," he said. And listed non-financial companies
came under pressure to match the returns of the financial
sector, forcing them to cut costs -- often by freezing salaries
or laying off staff -- rather than making long-term investments.
The global financial crisis will add at least 20 million extra
people to the world's unemployed, a study by a United Nations
agency has predicted.
This will bring the total number of people without work to 210
million by the end of next year, said the International Labor
Organization (ILO).
ILO Director-General Juan Somavia said the figures showed that
governments had to focus on individuals not just banks.
"From one point of this view this is called productivity
increases. From a more profound point of view it means a worker
becomes a commodity," he said.
He called for more efforts to help those affected cope with
unemployment.'Care about people'
"We thought it was not good to talk about the financial crisis
exclusively in financial terms," said Mr Somavia.
"We have to talk about the financial crisis in terms of what
happens to people and in terms of what happens to jobs and
enterprises.
"If we have enough resources to pump into the financial system,
this is not the moment to say, 'Yes, but we don't have the
resources to care about people'".
Mr Somavia added that while governments were right to try to end
the "credit paralysis" in the first instance, attention should
now be expanded to helping firms maintain jobs. In particular,
he said governments should help small companies, since combined,
these produced the most jobs.
Mr Somavia added that protecting people's pensions was also
vital. Returning to the global economy, he said the sectors that
were likely to see the most job losses were construction, the
housing market, financial services, the wider service sector,
and carmakers.
But what he has not said is the fact that working class of the
world will have to rise in global action against offensive of
the crisis. Public Service employees and the workers should rise
up in protecting their social security and pension funds by
vigorous struggle. Shocked and dazed, the US Govt and European
Govts are projecting bail out plans.
Socializing the mistakes inflicting severe damage to
free-market capitalism?
But about US Govt’s bailout plan? ‘After a period of wild market
swings in which trust was at times wholly absent, governments
save face having to socialize the mistakes of an entire industry
in order to restore confidence’.- wrote John Plevda in Financial
Times of 20 Sept./21 Sept’08.
President Bush’s administration’s multi-trillion dollar rescue
plan for the financial system is set ‘at the cost of inflicting
severe damage on the US model of free-market capitalism –
continues the columnist of Financial Times. He further
continues, ‘Heavy costs will be inflicted on the American tax
payers who is now subsidizing Wall Street – and indeed financial
institutions around the world in a bailout of unprecedented size
…., the sequence of events that led to this extraordinary
socialization of finance began with the defacto nationalization
of Fannie Mac and Freddia Mae, the bankrupt government sponsored
mortgage lenders at the heart of the US housing finance system
and then came the takeover of Merril Lynch by Bank of America”
while Henry Paulson, US Treasury Secretary allowed “Lehman
Brothers the fourth largest US investment bank to go to the
well”.
Thus when the much touted edifice of free-market capitalism is
crumbling down, the US Govt, the notorious creator of this
free-market model suffers a volte-face and ultimately resorts to
large-scale state intervention to prevent the edifice from
crumbling. But the monster of free-market capitalism that has
been meticulously built up by successive US administrations is
set to tumble down blowing off the myth of virtue of the
free-market economic model of capitalism.
Turmoil in European Financial Market Deepens
“The global credit crisis has slammed into Europe with stunning
violence triggering five major bank rescues and a near shutdown
of the regime’s credit-markets” reports The Daily Telegraph of
30 September’08.
Here also the Govts are resorting to partial or full
nationalization after the Dutch-Belgian bank Fortis, Britain’s
Bradfords and Bingby and Iceland’s Glintis failed to roll over
debts in the short term money maturity, while the French Govt
pledged support for the Franco-Belgian lender Dexia after the
show piece collapsed on reports of capital shortage.
Germany’s Hypo Real Estate, a commercial property lender was
rescued with a Euro 35 billion life line from a consortium of
local banks. ‘The inter-bank market has collapsed’, said Hanas
Redekar, Currency Chief of BNP Paribas. Carsten Breznski, Chief
Economist of ING in Brussels, said the global crisis was now
engulfing Europe with devastating speed. The Europeans thought
that the sub-prime crisis was just American rubbish that the US
should clean up itself but now they are finding out that it is
their rubbish too’, he said.
IMF data shows that European banks have 75 p.c. as much exposure
to bad housing debt as US banks themselves. Moreover they have
maintained bad debts from the British, Spanish, French, Dutch,
Scandinavian and East European housing markets, where property
bubbles reached even more extreme levels than in the US.
U.S. bends the rules of free markets – Angry Debate Rages
Most significantly critical analysis of this deeply engulfing
financial crisis is made by the columnists of USA To-Day dated
September 19, within 4 days of the Wall Street crash and the US
Govt’s hurriedly proposed rescue plan.
The news paper caustically writes ‘WALL STREET IN CRISIS’, and
then under the headline ‘US BENDS THE RULES OF FREE-MARKETS.
NATION IS NOT PRACTICING WHICH IT PREACHED TO OTHER COUNTRIES’
elaborates the rescue plan of the US Govt by injecting huge
amount of money from the public exchequers with biggest ever
state intervention.
The news paper writes, ‘Throughout more than a decade of
recurrent crises in nations such as Mexico, Russia and Thailand,
the United States offered the same advice: Let the market solve
the problem and get the government out of the way. Even when the
consequences of such economic "tough love" included widespread
joblessness, soaring poverty and domestic turmoil, Washington
insisted on the rule that the market knew best’.
The paper continues, ‘Now that it's the United States battling
financial conflagration, it turns out there are exceptions to
that rule. Such as Uncle Sam's takeover of AIG, the world's
largest insurance company. Such as the quasi-nationalization of
mortgage giants Fannie Mae and Freddie Mac. Such as putting $29
billion of taxpayer money at risk to facilitate JPMorgan Chase's
acquisition of investment bank Bear Stearns.’
"We're not doing what we preached," says economist Sung Won Sohn
of California State University.
Today's made-in-the-U.S. crisis differs from the emerging
markets crises that swept Mexico, Thailand, Korea, Indonesia,
Russia, Brazil and Argentina from 1994 to 2001. The origins of
those countries' problems were found in capricious global
capital flows and a mismatch between excessive borrowing in
foreign currency and the countries' maintenance of fixed
exchange rates. The current U.S.-centered cataclysm originated
in the mortgage market with widespread provision of
low-interest-rate loans to people who couldn't afford them and
their subsequent sale as securities to institutional investors
who barely understood them – a speciality of a free-market
economy for quick profits.
Free Market Financial Engines No Longer Working – Past and
Present
But what yesterday and today have in common is a shared sense of
financial engines that no longer are working. As the U.S.
confronts its day of reckoning, the gap between the economic
remedies it urged on others and its own actions are glaring.
In the 1990s, officials of the U.S. Treasury and the U.S.-backed
International Monetary Fund urged the leaders of crisis-hit
countries to embrace market-oriented policies designed to put
their economies on sounder, long-term footing. But the
recommendations — to slash government spending and privatize
bloated state companies — meant genuine pain for millions and
thus real political costs for leaders.
In 2001 in Argentina, millions of members of a thriving middle
class were driven into poverty. In Indonesia in 1998, rioters
burned shopping malls and storefronts in the capital city before
driving longtime dictator Suharto into retirement. And in Russia
that same year, the stock market lost three-quarters of its
value and annual inflation topped 80 percent.
Officials in these countries at first resisted the harsh
reforms, fearing exactly the sort of domestic instability that
resulted. But they ultimately capitulated, realizing that their
only hope of obtaining needed IMF financing was to comply with
the global lender's conditions.
In demanding such painful changes, IMF and Treasury policymakers
were guided by an economic philosophy known as the Washington
Consensus. Emerging from the euphoria of the Berlin Wall's
collapse and the embrace of the market by former socialist
countries, the formula promulgated deregulation, privatization
and open trade as the only path for countries seeking long-term
prosperity.
Now, facing its own choice between the domestic pain associated
with economic orthodoxy or postponing it by compromising
long-cherished principles, pragmatic authorities have chosen the
latter. Federal power has been stretched so far that the near
unthinkable occurred within two months of the Crash: The Federal
Reserve ran low on money, requiring the Treasury to stage a
special $40 billion auction of government securities to
replenish its coffers.
Even at this moment some of the US intellectuals feel jittery,
there are other who still believe that if important financial
institutions failed, market participants and lawmakers alike
felt that market forces could restore order on their own, with
only minimal government aid.
There is no doubt they are wrong.
But the Volta-face does not End
As the crisis further deepens, the jittery US Govt and the
European Govts are now declaring more and more bailout plans
throwing overboard their rules of free-market and no state
intervention.
On October 13, Germany, France and Spain announced bailout
package for their financial sectors that add up to 7.3 trillion
US dollar The UK Govt has announced 650 billion dollar rescue
plan to help to marooned banking system of the country. Added to
US 1.7 trillion dollar that the US has either already spent, or
plans to, to remedy the financial crisis, one will get a total
of over 3.6 trillion dollars bailout money. That is more than
double the entire spending of the Indian Govt since
independence.
On 14 October’08, the US Govt further undertook a partial
nationalization of its banking system announcing that it is
pumping 250 billion dollars into nine top banks and scares of
minor equity stakes to restore confidence and liquidity in a
frozen financial world in what amounts to as every body agrees,
the largest government intervention since the Great Depression
beginning in 1929.
More significant is the fact that in return to minor
equity-stake, it was revealed that the government will set
conditions and control some aspects of the systems, including
making key appointments, executive directors and decisions on
raising dividends.
President Bush while announcing this decision said, ‘And the
programme is carefully designed to encourage banks to buy these
shares back from the Govt as the markets stabilized when they
can raise capital from private investors. It means Mr. Bush
seeks to assure his critics who feel that USA Govt is throwing
off its free-market prescription that this is not so, it is only
a temporary measure to administer a life-saving injection to the
dying patient!
Wall Street Crash Severely Affects Asian and other Countries
The global credit crisis is starting to take its toll on
consumers in a group of nations that have boosted the world's
economy over the past few years: the big emerging economies of
China, India, Russia and Brazil.
Global growth this decade has been powered by the economies of
the U.S. and other Eurpean countries. As a troubled financial
system sidelined the U.S., hopes remained that the developing
nations could pick up the slack. Instead, the economies of the
big four are slowing as consumers feel the pain emanating from
the West.
In Russia, easy credit that powered consumer spending is now
contracting. In India, outsourced jobs from Western financial
companies are dwindling. In China, the locus of world attention
in recent years, a stock-market collapse and deflating property
prices are causing consumers to think twice about purchases. In
Brazil, the prices for the commodities it exports are falling.
Growth in these large, continental economies is still much
faster than in the U.S. or Europe. But indicators suggest that
their newly affluent consumers aren't going to be holding up
global growth on their own.
If this attitude spreads, it's bad news for the global economy.
Although consumers in the big four emerging economies are still
much poorer than the average American or European, their growing
appetite for refrigerators, cars and flat-screen televisions
during the past eight years has accounted for nearly as much
growth in global demand as the U.S., according to Goldman Sachs.
Demand from those countries had been expected to overtake the
U.S. and steadily climb toward the total demand from the entire
Group of Seven leading nations.
In some of these countries, credit is contracting just as it is
in the developed world. In Russia, easy credit and higher real
wages have fueled a consumer boom in the past few years.
"Russia's consumer boom was largely due to easy credit," says
Alexander Potavin, a senior analyst at Moscow brokerage
Antanta-Pioglobal. "Now it's really difficult to get a loan from
a bank."
The two biggest weak spots in the Chinese economy appear to be
export industries that sell to the U.S., and the housing market.
China also has some troubling indicators.
Leaders of Europe and Asia Call for Joint Economic Action
It in this dire situation, leaders from across Asia and Europe
gathered in Beijing on Friday and Saturday and called for a
coordinated response to the global
financial crisis, in an event
that underlined
China’s growing role as a
diplomatic counterweight to the United States, but fell short of
offering specific solutions.
In the difficult balance between preserving financial innovation
and ensuring adequate regulation, the presidents, prime
ministers and other leaders clearly tilted toward more
regulation. A joint statement at the conference did not suggest
how to accomplish this, but noted that “necessary and timely
measures should be taken.”
The statement did not exclude innovation, but indicated the preference of
the attendees: “Leaders were of the view that to resolve the
financial crisis it is imperative to handle properly the
relationship between financial innovation and regulation and to
maintain sound macroeconomic policy. They recognized the need to
improve the supervision and regulation of all financial actors,
in particular their accountability.”
China said that it would attend the international conference of
G-20 in Washington on Nov. 15 that President Bush has organized.
But without directly criticizing the United States.
President Bush and his advisers have also accepted a need for
more regulation in some areas. But in a subtle yet potentially
important difference of tone that reflects many years of more
market-oriented policies in the United States than in Europe or
Asia, the Bush administration has repeatedly said that
regulation should not prevent banks and other financial
institutions from finding effective yet safe ways to meet their
customers’ needs.
David H. McCormick, the under secretary of the Treasury for
international affairs, said in a speech in Hong Kong on
Wednesday that, “we have undoubtedly learned that our own
financial system is in need of reform.”
But he later added, “It would be unfortunate if, as a result of
this turmoil, policy makers in China mistakenly abandon their
pursuit of financial sector innovation and liberalization that
has been so important to supporting China’s growth in
productivity and macroeconomic stability.” He was so afraid of
any rethinking by China of her economic policy.
The event in Beijing drew heads of state and other top officials
of the 27 member countries of the European Union, the 10 members
of the Association of Southeast Asian Nations as well as China,
Japan, South Korea, India and Pakistan.
Indian economy is going to be hit badly. The economic crisis in
India would have been uncontrollable but for the strong
resistance of the Left parties against further opening and
liberalizing the Indian Economy according to IMF-World Bank and
Bush administration dictates. But even then, the Govt is trying
to privatize the statutory pension fund and opening the public
sector Banks and Insurance industries.
The Vulnerability of Arab economies to the global crisis
The violent financial storm now descending on the Middle East
threatens to derail the economic ambitions of the oil-rich Gulf
states and wipe out the modest economic growth and progress
witnessed in the non-oil producing areas of the region. Perhaps
even more troubling, the crisis has exposed the vulnerability
and inadequacy of the institutional foundations of Middle
Eastern economies.
To be sure, the Gulf states have an advantage over other Middle
Eastern countries thanks to their huge budget surplus, funds
which can act as a cushion against heightened global volatility
and further drops in oil prices.
The non-oil producers of the region will probably suffer the
most from this current financial turmoil. Like the Gulf states,
they've witnessed respectable economic growth but have failed to
effectively shift their economies toward allocative and
productive efficiency. From Morocco to Egypt, non-oil still have
the world's lowest employment rates. A deep and prolonged
international recession threatens to badly hit their main job
creation industry (tourism) and squeeze out funding for projects
that are vital to sustaining economic growth and containing
mounting unemployment.
Frantic Effort to Salvage the Situation
National governments around the world are frantically trying to
do what is necessary to prevent another major financial
institution from failing, the International Monetary Fund's
managing director said, although he didn't specify any measures.
Series of meetings among the heads of the Govts like European
big 5 G-7 and other bilateral discussions were already held and
President Bush wants G-20 meet and Washington on 15 November’08
to find ways to salvage the siotuation. Huge funds from the Govt
treasury and the Federal Bank in USA, Reserve Bank of India and
in other countries, similar measures are being taken to pump in
huge amount of funds to increase the liquidity of the Banks and
save them from bankruptcy.
Argentina’s Laudable Step to Nationalize the Pension Fund to
Protect the Workers’ Interest.
At a time when most governments worldwide are unwilling to take
a lesson from the economic meltdown that has wiped off trillions
of dollars from pension funds, Argentina's President Cristina
Fernandez on 21 October 2008 in a brace decision signed a bill
for nationalization of the private pension system worth U.S. $30
billion. Labor leaders and lawmakers from the ruling Peronist
party and some opposition groups applauded the takeover as a way
to guarantee pensions at a time of global market turmoil.
Argentine’s pension accounts were managed by 10 private pension
administrators, the country's biggest institutional investors.
Each year there are more than $4 billion in contributions to
these pension funds. The private pension system has been
unpopular due to high commissions and because there is not a
guaranteed minimum pension.
Some Lessons
What is the lesson? Firstly, fearsome but unsustainable
character of the free market economy of capitalism with the
dominance of Finance Capital, especially the neo-liberal
economic agenda of World Bank-IMF vigorously pushed through by
the US administration and its financial system has now come out
most nakedly. Hatred against state intervention and financing
for the well being of the people, for their jobs - health,
education, housing –-and all other bare necessities, hatred
against public sector and public institutions, any social
security measures for the working people by state institutions,
propagating too absolute reliance in the market forces, have at
last rendered the world economy including that of India to such
a an extremely critical situation. Already according to US
Labour Deptt. report 7,60,000 jobs have been lost and already 10
lakh people have been rendered homeless. From US and most other
countries daily reports are pouring in of retrench and job lose.
Secondly, now, even the US economic experts are publicly stating
that Wall Street (where US Stock Exchange and other main
financial institutions are situated in New York) economic crash
has set off the biggest of world economic recession since the
most fatal and largest economic depression that began in 1929
with Stock Market and banking crashes causing huge unemployment
and enormous economic difficulties for the common people world
over.
Thirdly, the total falsity and stupidity of worshipping the
Stock Market as the biggest god or Avtar of the capitalist
system is thoroughly exposed. Govt of India, for that matter,
all capitalist governments consider that only the measures to
fattening and swelling the Stock Market as will be reflected by
its index, such as Sensex will stand out as the only standard of
economic progress of the country.
Lastly, and most importantly, Marx’s theory of Capitalist Crisis
and later which type of crisis can take place in the era of
imperialism and finance capital has been explained by noted
Marxist scholars like Paul Sweezy and other Marxist scholars.
Even John Maynard Keyens, the noted bourgeois economist on whose
prescriptions, the capitalist economy again revived in the
aftermath of Great Depression, dwelt upon the subject in his own
fashion particularly in his volume The General Theory of
Employment Interest and Money in chapter 12 in particular where
he explained the state of confidence and he writes ‘Speculators
may do no harm as bubbles on a steady stream of enterprise. But
the position is serious when enterprise becomes the bubble on a
whirlpool of speculation. Even this noted bourgeois economist
hinted at in what can do ‘the bubble in whirlpool of
speculation’. The Wall Street crash is a unique example which
can happen when the bubble bursts.
Even Paul Krugman, the latest Nobel Laureate in Economics had
forecast in 2001 itself, the impending crisis in US economy as
it has unfolded today.
Marx’s Theory of Capitalist Crisis
With the onset of the crisis, the capitalist state leaders have
become totally confused how to get out of this morass of crisis.
Interestingly, they are trying to find a way out from Karl
Marx’s works. It is reported that even the venerable Pope of
Vatican, the religious head of the Christian world, one of the
most reactionary and conservative state leader of Europe, Mr.
Sarkozy, President of France, the Finance Minister of Germany
which is also a highly conservative Govt are studying Das
Capital of Karl Marx to find how analysed capitalism. This is
very interesting that these people were the worst haters of Karl
Marx and his idea of socialism.
Marx’s theory of the necessity as opposed to the possibility of
regular crises in capitalist economies draws upon the
interaction between competition, class conflicts and the law of
the tendency of the rate of profit to fall (LTRPF). It is
sufficient to observe that crisis can occur apart from immediate
movements in the rate of profit, indeed, they can be due to
factors originating from outside the circuit of capital, for
example social, political, financial or technical upheavals. The
possibility of erosion in the profit rate because of the
inability of capital to ‘restructure’ to achieve higher
profitability, and the fragility of the stock exchange to ‘bad’
news and its repercussions for economic reproduction, are all
too familiar. Other potential causes of crisis include price
crashes due to overproduction in key industrial sectors, the
collapse of important financial institutions, and instability
induced by foreign trade or political turmoil at home.
Marx argues that crises can always arise because of the
contradiction between the production of use values for profit
and their individual or, more exactly, private consumption.
Marx explained in Capital Vol-3 that in capitalism there is an
inherent barrier in Capitalist’s expansion. Capitalist
production seeks continuously to overcome these immanent
barriers but overcomes them only by means of which again placed
these barriers in its way and on a more formidable scale. The
real barrier of capitalist production is Capital itself.
In the present case of global economic crisis set off by Wall
Street Crash exactly corresponds to this analysis of Marx of
Capitalist crisis.
Marx explained this situation in another place of Capital Vol-3
In sum, crises of Capitalism are unavoidable. In the present
case, crisis caused by Wall Street Crash are no ordinary crisis.
It hits the underbelly of global capitalism. So the subject
needs a deeper probe. Working class will have to deeply go into
the causes and nature of this grave crisis of world capitalism
and devise their appropriate course of action. Free market
capitalism is collapsing. With Capitalism’s maneuverility it may
recover to some extent. But this way it cannot survive.
So, for the working class, this grave crisis again presents the
idea of socialism in a more vibrant way.
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