The Cost of Capitalism

Whenever there is an economic crisis, a country's incomings are reduced due to a shrinking of business, trade of taxable goods, numbers employed and individual wages (at least in real terms) . Consequently there is always pressure on a Government to reduce its outgoings during such a period. It must make cuts to state spending to keep its books balanced.

The current crisis, which manifested itself firstly as a global crisis of finance capital, and therefore struck the financial centres of the world first and most forcefully, was temporarily quelled by the state. Governments internationally poured astronomical sums of tax payers' money and future tax payers' money into the inefficient private banking sector, run into the ground by arrogant, greedy and incompetent bankers. And the Economist and other economic organs are recommending that Governments continue to do so and that they offer 'unlimited' funds.

Therefore, whilst on the one hand Governments are under pressure to make tremendous state cuts, they are under pressure to spend a tremendous amount too. Cuts to essential services which will adversely effect the lives of ordinary people of all ages, and the most vunerable most acutely, and spending on the reckless, incorrigable rich. The poor have too much money spent on them and the rich not enough. This is not due to any 'selfish gene' or evil personalities, but due to the demands of the capitalist system.

Therefore, society must ask itself what it has to gain by keeping the capitalist system, since its survival depends upon the destruction of the living standards of the majority, the 99%. And not just temporarily, but for an indefinite period, since governments everywhere are predicting a further reccession and most likely further bail outs, which in turn will require further cuts to public services. This in turn will lead to a further fall in demand, which will lead to a further fall in supply, and a further reccession etc. The world economy is in meltdown and will be for an indefinite period.

Whether we like it or not, in absolute terms, the living standards of the majority will plummet if Capitalism remains.