|SocialismToday Socialist Party magazine|
OVER RECENT YEARS, we have often been accused of being ‘catastrophists’. This is because we predicted that the debt-driven bubble economy, dominated by high-profit, high-risk finance capitalism, would at a certain point collapse, resulting in a serious downturn in the world economy.
Unfortunately, some on the left succumbed to the idea that the world capitalist boom, based on accelerated globalisation and ultra-free-market policies, could continue indefinitely. The events of recent weeks, following the collapse of the US housing bubble and the severe repercussions of the subprime mortgage crisis, have completely changed the picture. Now the headlines in the serious capitalist press are ‘catastrophist’. "Capitalism in convulsion", read a headline in the Financial Times (20 September).
Temporary blips aside, the popularity of Britain’s prime minister, Gordon Brown, and his government is on the slide. New Labour MPs are beginning to squeal, sensing that before long they could lose their lucrative seats, pulling their noses out of the generous parliamentary trough. Economic recession and rising working-class anger are fuelling this political crisis. In the wake of New Labour’s national conference, PETER TAAFFE assesses the situation.
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Cover cartoon: Suzanne Muna www.squashdonkey.co.uk