OPPORTUNITIES FOR CHANGE

Apparently when the G20 was mentioned to George Bush earlier this year by Kevin Rudd the Australian Prime Minister, Bush had to ask what it was. Unfortunately this is not another joke about the limited intellectual capacity of the outgoing US President but rather it reveals the insignificance of the G20 meeting held in Washington on 15th November. Despite the optimistic statements issued by the participants the underlying fact was that they had no collective answer to the deepening crisis facing their economies.

US Treasury Secretary Henry Paulson had already backtracked from his previous decision to buy up the ‘toxic assets’ of the financial institutions because of the sheer volume of debt involved, and updated forecasts by the IMF now signal that both the US and European economies amongst others, will be in recession throughout 2009.
With this background it is beyond ironic to hear the world leaders proclaim that capitalism is ‘the best possible system of government’, making one wonder what the worst system of government would be like!

Yet such rhetoric is stock in trade for the defenders of capitalism, feeding the general population with statements made purely for public consumption, while the reality is often the complete opposite to what is being said.

The Labour government has told workers for years that the economy could not afford above inflation wage rises, and that there was no money available for the development of health and education, yet the moment the wealthiest layers in society run into self-made problems, this same government suddenly find billions of pounds to bail the financial sector out.
Furthermore, in an attempt to placate the population at large Gordon Brown and his ministers announced that they have asked the mortgage lenders to explore all avenues to ensure that home repossessions only take place as a last resort, knowing full well that this is merely political spin and the reality is quite different.

Recent figures reveal a 40% increase in the number of home repossessions in the last six months alone. Moreover, the main culprit in repossessions is the government-owned Northern Rock, which has been responsible for more than 20% of the total, whilst also recruiting almost five hundred more people to work in its repossessions department. In addition, a recent court ruling, dragging up legislation from the 1920s, allows mortgage lenders to repossess properties even if they are a mere two months behind in missed payments. Does that sound like the action of last resort as promised by Brown?

Yet this financial sector that are now so quick to resort to repossessions, have had, on a worldwide basis over £5 trillion handed over to them to keep them afloat.
In the United States the emphatic victory of Barack Obama signified that the American population wanted a complete break with the policies of the Bush Administration, and far from being a question of race, Obama’s election demonstrated that in the final analysis it is not religion, gender or race that is the decisive factor but the deepening economic crisis and the class struggle it engenders that predominates.

However the hopes and aspirations that working people have invested in Obama will sooner rather than later be shattered as he gathers around him the same characters that have dominated both the Bush and Clinton administrations. Obama, no matter what his subjective intentions may have been, will defend capitalism at the expense of the interests of the millions of workers who put him in office, a situation that will result in increased social and industrial conflict.

In Britain the desperate attempt by the Brown government to control the crisis by cutting interest rates will not only see the collapse of the pound but will also raise the prospect of national bankruptcy, meanwhile doing nothing to prevent the rising levels of unemployment and the gutting of public services. Also, in an attempt to save the system, the Labour government will continue to pursue privatisation and wage cutting policies as they seek to make workers pay for a crisis not of their making and overturn every gain made by the working class over decades of struggle.

In contrast and in opposition to the desires of capitalism, socialists should see this coming period as an opportunity for change. The political void now open must be filled by developing and promoting SLP policies that do represent and give voice to the best interests of the majority of the population.

Ends.