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Archive for the ‘Bail-out’ Category

Competition and Socialism

Tuesday, June 14th, 2011

Planning and market forces are not the essential difference between socialism and capitalism. A planned economy is not the definition of socialism, because there is planning under capitalism; the market economy happens under socialism, too. Planning and market forces are both ways of controlling economic activity.
- Deng Xiaoping

People who are aware of the history of USSR and perhaps Maoist China may come under the impression that the definition of socialism is a command economy. The definition of socialism is actually the “dictatorship of the proletariat” and not specifically a command economy. The definition of Communism is “from each according to his ability, to each according to his need,” and this may imply some degree of commanding but nothing is explicitly defined as planning. Bailing out major banks as Obama did is a form of planning but it is not a form of socialism. The idea of socialism is that the working class truly “owns” the means of production and that no “human right” gives a particular business leader ultimate authority to use the means in a way that contravenes the interests of the working class or the country.

Those who consider themselves to be fans of Stalin may believe that Stalinist economics are a tenant of socialism. No, Stalinist economics are an adaption to the material conditions at the time. It is a fact that in Marx’s hierarchy, feudalism is considered less progressive than capitalism. Stalin applied a Marxist “pro-worker” leadership to feudal conditions. He had to take what was not industrialized and industrialize it. This does not change the fact that capitalism is more progressive than feudalism. Being a Marxist is not solely being against capitalism.

Socialism implemented in a capitalist country would contain characteristics of capitalism. Socialism created in a feudal economy would have to develop those forces. The key is that under socialism the market is not seen as sovereign but controlled. The Chinese economy works such that market forces exist, but communist party members also manage corporations. It is pragmatic in that the profit motive is allowable except when it violates the interests of workers, in which case the Government steps in.

When competition provides something that is good for society, it can be utilized. In fact sometimes capitalists do away with competition through monopolization. The essential difference between socialism and capitalism is “who is in charge.” Are the business leaders in charge or is the revolutionary party in charge? The difference is not that one plans and the other competes. A business leader can succeed, but a revolutionary party leader will determine how this success should be used to benefit the working class and country.

The Fed, Allen Greenspan attacked on MSNBC

Monday, April 12th, 2010

Visit msnbc.com for breaking news, world news, and news about the economy

How long should we remain peaceful?

Saturday, November 28th, 2009

Perhaps it is not just the recession, but the lack of competition. With the fall of the Soviet Union, liberal capitalists now have nothing to compete against and have totally screwed over the average every day person while they stuff their own faces with bail-out money and rip the fabric of the American nation to shreds.

How long until we start to commit acts that they’ll never forget? This is not a call to violence, to all the subversives who read this, but a purely introspective question. At what point is enough really enough?

Liberal Democratic Capitalism is a failure

Thursday, November 19th, 2009

Libertarianism is an unquestionable failure. The economy and country has been ripped to shambles by outsourcing, uncontrolled immigration, poor loan policy, greed and a government that enables it. Globalization has created a system where each country cannot be self-sufficient and political correctness has completely destroyed this country socially. If one country crashes, they all crash. The government “solution” of bailing out the same people who caused the recession is an unquestionable failure. Our system of economics is far behind computer networking, as good networks are designed to be fault tolerant but our economy is not. Only the people who screw things up get bailed out while other people never get a chance to even start their careers.

Americans should get more militant if the government doesn’t cooperate. We’ve had enough of being bounced between a facade of two similar parties like pinballs and we’re not going to waste our lives away decaying under this system. Both parties serve the same elite and both hate communitarian nationalism. We’re not as dumb as the government thinks we are. If there is no light at the end of the tunnel, you can count on anti-government action and feeling escalating.

Economy recovers for investors- but not for you

Friday, November 6th, 2009

Keep bailing out the biggest banks and corporations so that any jobs they create go overseas to India and China. Keep bailing out the people who caused the recession, the mismanages who will stuff their face with the money and use it to “maximize the profits of shareholders” rather than create jobs.

Quite frankly, it is time for populists to do a little more than talk about opposing the regime. If there is no light at the end of the tunnel, then populists should start to organize not against a particular party but against the entire power structure.
http://money.cnn.com/2009/11/06/news/economy/jobs_october/

NEW YORK (CNNMoney.com) — The nation’s unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.

The reading, reported by the government Friday, is a sign of the continued weakness in the labor market even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression.

The government reported that the unemployment rate spiked to 10.2%, up from 9.8% in September. It is the highest that this rate has been since April 1983. Economists had forecast an increase to 9.9%.

There was also a net loss of 190,000 jobs in October, according to the Labor Department, an improvement from a revised estimate of 219,000 job losses in September. However, economists surveyed by Briefing.com had forecast a loss of only 175,000 jobs in October. This was the 22nd straight month of job losses.

“The only good news is the number of layoffs are dropping off, but those who are laid off still aren’t finding jobs,” said David Wyss, chief economist with Standard & Poor’s.

The jump in the unemployment rate was driven up by a large drop in the number of people who describe themselves as self-employed, as well as the number of teenagers who have jobs. The unemployment rate for teenagers in the labor force soared to 27.6%, up 1.8 percentage points and hitting a third straight record high.

Both teen workers and the self-employed are not captured very well in the government’s separate survey of employers that is used to calculate the number of people on U.S. payrolls. That explains much of the disconnect between fewer job losses overall and the much worse unemployment rate.

The rise in unemployment was not spread evenly across the population. For those with college degrees, the unemployment rate fell to 4.7% from 4.9% in September, as the unemployment rate for those in management, professional, and related occupations slipped to 4.7% from 5.2%.

But the unemployment rate for production jobs, such as factory workers, jumped to 14.5% from 14.1%. The jobless rate for workers in construction, maintenance or natural resources industries such as mining rose to 15.5% from 14.3%.
0:00 /3:08Real unemployment really bad

“There’s a real mismatch between the unemployed people out there compared to what job openings are available,” said John Silvia, chief economist with Wells Fargo Securities. He said construction workers who lost a job when the housing bubble burst don’t have the skills to compete for jobs in sectors that are hiring, such as health care and technology.

Government efforts to end job losses have had limited effects, although the Obama administration estimated last month that 640,000 jobs were created or saved by the federal stimulus package passed earlier this year. But that’s modest compared to the 7.3 million jobs that have been lost since the start of 2008.

Christina Romer, chair of the President’s Council of Economic Advisors, said the steady decline in monthly job losses since earlier this year is a hopeful sign for the economy.

But she acknowledged there’s still significant pain for those looking for work. “Having the unemployment rate reach double-digits is a stark reminder of how much work remains to be done before American families see the job gains and reduced unemployment that they need and deserve,” she said.

Friday’s report comes one day after Congress voted overwhelmingly to extend unemployment benefits by up to 20 weeks. There are now a record 5.6 million people who have been unemployed for six months or longer, as the average time an unemployed person has been out of a job hit 26.9 weeks.

Prior to this report, most economists had believed that the unemployment rate would keep rising and that job losses would continue into next year. But the jump in unemployment in October took it to levels worse than what many previously had expected to be the peak.

According to a survey of top forecasters by the National Association of Business Economics last month, the consensus estimate among economists was that unemployment would hit a high of 10% in the final three months of this year and the first quarter of 2010.

The five economists with the most bearish forecasts had expected unemployment to rise to 10.2% in the fourth quarter of this year before hitting 10.5% in the first half of next year.

Wyss is one of those economists who had projected an unemployment rate of 10.5% in the middle of next year. He said Friday’s report may force him to raise his worst case estimate.

“Some things aren’t playing out the way I expected them to,” he said. “There’s just no good news in this report.”

But others said they see some early signs of life for the labor market. Sung Won Sohn, economics professor at California State University Channel Islands, noted that the biggest increase in temporary employees in two years took place in October.

Employers typically bring in workers on a temporary basis before deciding to make more permanent hires. As such, he expects gains in payrolls by next spring.

“Despite the gloomy job picture, there are some encouraging signs,” he said.

Statement from the CWP (M-L) on Bail-Out Plans

Friday, December 12th, 2008

Don’t Support THEIR Bail-Out

In California today – the front page of nearly every major daily newspaper cited the governor’s grim prediction of a “Budget Armageddon” that could reach $40 billion by June 2010. In the meantime, democrats and republicans (the predictable two-sides of the same coin) are making back-handed deals in Sacramento that will mean more cuts for healthcare, education and human services for California’s working poor.

All across the country schools are using second-rate supplies, community health clinics are shutting down and elderly people are forced to sacrifices their prescription medicine in order to eat.

Meanwhile the multi-billionaires who run this country are on their knees, begging Congress to cut them a check with PUBLIC MONEY that will ensure their control over the means of production and retain their monopolistic power over the economy.

Yet, in the heart of the imperialist beast, the buzzword for the last few months of the economic crisis (inevitable in capitalism) has been

Literally billions will be spent in the next year for oil wars and bailing out greedy bankers and finance capitalists; while the social infrastructure that you and I depend on rots away in the most perfidious manner – only once again demonstration THEIR utter contempt for US.

A system that promotes international terrorism for wider profit margins; that can remove hard-working people from their jobs and homes to cut costs; while at the same time INCREASING spending for bourgeois bail-out plans and imperialist military occupations in the name of Israel must be destroyed!

You have absolutely NO reason to support a bail-out plan for the elite oligarchy whose sole contribution to society is the mass-produced garbage they get YOU to consume. You should tell the leaders of this fake deMOCKERY that you will NOT support a bail-out plan that REWARDS the very behavior that is now affecting working peoples all over the world.

Organize strikes independent of the corrupt and impotent “unions” that misrepresent the labor movement. Show your outrage in front of BANK OF AMERICA and other financial institutions that want YOUR money to bail THEM out.

The speculators, profiteers and degenerate capitalists that run this country are NO different than the disgraced Governor of Illinois, Rod Blagojevich, who was caught for simply operating the system. The latter was just stupid and got caught, unawares that his arrogance would catch up to him. Most of the ruling class is far more subtle in their shameful behavior, but no less obsequious or pathetic.


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