127. A Marxist take on the world economic crisis

Socialism

In this podcast with Hannah Sell, Socialist Party general secretary, we look at the world economy, how the capitalist system works – or doesn’t work - and draw conclusions for socialists. It is the first time that, across much of the world, a surge in inflation has coexisted with widespread financial vulnerabilities. The longer the inflation persists, the stronger and longer the required policy tightening, and hence the bigger the financial stability risks”. The central banks are walking a tightrope, with little room for manoeuvre. Hannah draws out how, whatever the immediate perspectives are for the world economy, there is no prospect of any new golden era of capitalist progress. That does not mean, however, that the Great Recession is going to be precisely replicated. On the contrary, the capitalists will face crises in the next period that are likely to be even more devastating for their system, both economically and politically. None of the factors which led to the 2007-08 recession have been overcome, while the ‘solutions’ that were adopted to ameliorate its effects will not be possible in the same way next time. Hannah explains how the capitalist classes of the world have no way out of the intractable problems facing their system – economic, political, environmental. Halting climate change would clearly only be possible on a global basis, and yet under twenty-first century capitalism it is a tool for protectionism. Only planning, under the democratic control of the working class, will make it possible to develop production to a higher stage, organising it on a global basis to satisfy social needs and halt and reverse climate change, rather than being driven by the greed for profit. Replacing this rotten capitalist system with democratic socialist planning is the urgent task facing the working class worldwide. Get in touch To contact the Socialist Party about this podcast or to find out about becoming a member: www.socialistparty.org.uk We also recommend checking out the CWI, with analysis of world events, and for those listening in other parts of the world, get in touch to join the fight for socialism in your country, that’s www.socialistworld.net Socialism 2023 Saturday 25 and Sunday 26 November, Institute of Education, London WC1H 0AL It will be an in-person weekend of discussion and debate on ideas to change the world hosted by the Socialist Party. Hannah will be a key note speaker at the Saturday night rally and will also be among the many speakers introducing workshops where you will also have a chance to ask those questions forming in your head as you listen to this, to raise your own points, to argue if you wish. You will be among hundreds of socialist fighters at this weekend event – so it will be brilliant. Socialism 2023 takes place on 25 and 26 November in London. You can buy a ticket that includes hostel accommodation, there’s a free creche throughout, and it will be brilliant. For tickets and info: www.socialism.org.uk Further reading Socialism Today September 2023 No.270 The end of Golden Eras The new lease of life that world capitalism experienced after the collapse of the Stalinist states of Russia and Eastern Europe from the late 1980s has definitively run its course. Whatever the immediate perspectives are for the world economy, argues HANNAH SELL, there is no prospect of any new golden era of capitalist progress. https://socialismtoday.org/the-end-of-golden-eras Socialism Today July/August 2023 No.269 China, Mao and the markets At a time of intensifying economic and geopolitical rivalry between the United States and China, HANNAH SELL reviews a book that stresses the role of the Communist Party-controlled state in China’s economy. https://socialismtoday.org/china-mao-and-the-markets