![]() |
. |
![]() October 2008 Expropriate
the Banks Under a Workers Government!
From Wall Street Crisis to International Socialist Revolution ![]() Frenzy on New York Mercantile Exchange, March 2008. (Photo: Reuters) Break with the Democrats and All the Bosses’ Parties! Build a Revolutionary Workers Party! OCTOBER 2 – Over the last 15
years, there have been financial crises in a number of countries around
the
world: the collapse of the banking system in Mexico in 1994-95;
the
collapse of the currency of Thailand in 1997, touching off a
wave of devaluations
and stock market crises in all of Southeast Asia; the ruble crisis in Russia
in 1998, due to a fall in the price of oil; the devaluation of the real
in Brazil
in 1999, which unleashed a flight of short-term investments; the
economic
crisis of Argentina from 2000 to 2002, which resulted in the
fall of a
succession of presidents; the implosion of the information
technology bubble
in the United States in 2000-01 with the bankruptcy of many
Internet-based
“dot-com” companies and a nosedive of share prices on the New York
Stock
Exchange; and now, from 2007 on, the credit crisis in the U.S.
and
around the world that began with subprime mortgages. Yet
this is not only a financial crisis: the entire capitalist system is at
risk.
It has already set off a wave of sharp falls in stock market prices
worldwide.
The rulers of the United States, who brag that they are the only and
“indispensable”
superpower, say that if not resolved, the present crisis could have
“catastrophic” consequences. The kings of Wall Street, the center of
international finance capital, who have dubbed themselves “masters of
the universe,”
say the same. The stock market panic can end up in a full-fledged crash,
as in 1929, and meanwhile the lack of credit is threatening to produce
a new Great
Depression. Even though they have already pumped more than $500
billion
into U.S. banks, the credit system is still frozen. The economists and
politicians who in the past acted as prophets of the religion of free
markets
are now nationalizing one financial institution after another. And the
crisis
continues. In
Latin America, there is a widespread sentiment of Schadenfreude,
of
satisfaction in seeing the difficulties of the arrogant Yankee
imperialists who
used to try to discipline their subjects with the whip of
“neo-liberalism,” the
doctrine that calls for the elimination of all state interference in
the economy.
What a surprise! At the moment of truth, Washington and Wall Street
don’t want
to drink their own bitter medicine. Some “center-left” analysts like
the Brazilian
Emil Sader ask, “Is Neo-Liberalism Over?” (La Jornada, 29
September). (Sader’s conclusion
is that
the model has run out of gas, but it hasn’t ended.) Among “far left”
groups
analyses are proliferating that foretell a total if not terminal
“capitalist
collapse.” But neither the “moderate” nor the supposedly “far” left put
forward
a program for revolutionary action. In
the United States, the ruling class was shaken by the unexpected
failure of its
bank bailout plan in the House of Representatives on September 29.
Congressmen
received an avalanche of phone calls, letters and e-mails against it,
running
at a rate of 200 to 400 to 1 opposed to shelling out astronomical
payoffs to
the financiers who produced the crisis with their boundless “greed.”
The same
day as the vote in Congress, the New York Stock Exchange suffered its
biggest
fall since 1987. In one day more than a trillion dollars of what Karl
Marx
called “fictitious capital” were wiped out. Terrified investors are
putting
their money in U.S. Treasury bonds at an interest rate of practically
0, while
overnight dollar deposit loans among banks, the most secure in the
commercial
market, went up to 7 percent per day, the highest figure in
history. Meanwhile,
in the real economy, hundreds of thousands of families are losing their
homes
because of mortgage defaults. Companies cannot obtain funds to finance
investments
or even to carry out their day-to-day operations. Workers’ wages and
even
middle-class incomes have been hard-hit by the rise in prices of food
and fuel.
Real inflation is over 14 percent annually, according to the methods
used to
calculate the rate in 1980, before the government decided to falsify
the
figures by eliminating the cost of gasoline and food! The real
unemployment
rate is also already in double digits (over 10 percent) when you
include the
categories of “discouraged workers” who are not actively looking for
work, and
others who the government has simply eliminated from the workforce
altogether
because there are no jobs for them. Both are not counted in the
government’s
phony official jobless statistics. For the U.S. working class, whose
wages have
steadily fallen since the 1970s, the crisis is not new but has been
going on
for years. In
Latin America, the effects of the Great Depression of the 1930s in
Europe and
North America were partially offset by the relative isolation of their
national
economies, which made possible a certain process of industrialization
by “import
substitution.” Today the effect of the capitalist crisis is immediate.
The
panic on the New York Stock Exchange has spread and intensified on the
stock
markets of Mexico, São Paulo and Buenos Aires. The crisis in
Detroit due to
falling automobile sales has led to layoffs in the maquiladoras
(free
trade zone plants) in the north of Mexico, which produce exclusively
for the
U.S. market. If in recent years the mounting demand for raw materials
has
produced a boom in oil and mineral producing countries, now a crash is
looming
as a result of the plummeting prices and falling exports. In the era of
“globalization” there will be no safe harbor from the devastation of a
world
capitalist crisis. It’s
not a matter of choosing one “model” or another of capitalist economy:
it is
the system itself that is in crisis. “Neo-liberalism” spread in the
1980s due
to the exhaustion of the Keynesian policies which sought to regulate
crises
through government spending – policies which in the 1970s led to the
phenomenon
of “stagflation,” when inflation surged while the economy
stagnated.
This was intensified due to the decision of the U.S. government, under
the Democrats
as well as the Republicans, to finance the Vietnam War with a policy of
“guns and
butter” (i.e., budgeting increased spending for the military and for
social
programs). How did they do it? By printing greenbacks. Similarly, today
the war
on Iraq and Afghanistan is being financed entirely by borrowed money:
the trillion-dollar
(so far) bill will come due later. And if in 1971, Washington’s answer
to the
economic crisis was to declare that the U.S. currency was no longer
backed by
gold, today the dollar’s value and its function as the world’s reserve
currency
is based exclusively on confidence in the stability of the American
economy.
Once that confidence has gone up in smoke… But
the dire straits in which the masters of the U.S. economy find
themselves will
not by itself lead to a positive outcome for the international working
class.
In the 1960s and ’70s as well, the American empire was bogged down in a
losing
colonial war, along with great social unrest in Latin America, and a
large-scale capitalist economic crisis. But nowhere was capitalism
overthrown
in the region after the Cuban Revolution. Why? The absence of
victorious proletarian
revolutions in the Western Hemisphere is entirely due to the lack of a revolutionary
internationalist leadership. The Latin American left was dominated
by the
line of Castro- and Mao-style guerrilla struggle, both variants of
Stalinism,
based on the nationalist and anti-Marxist policy of building
“socialism
in one country.” The failure of these struggles, based not on the
proletariat
but on the petty-bourgeois peasantry, led to the destruction of an
entire generation
of leftist would-be revolutionaries. Today,
the theories of an imminent final collapse of capitalism have gained
new
currency. Quite awhile ago, Lenin underscored the falseness of such
concepts.
In his report on the international situation to the Second Congress of
the
Communist International (1920), he insisted: “[For the bourgeoisie] there
is no such thing as an absolutely hopeless situation. The bourgeoisie
are
behaving like barefaced plunderers who have lost their heads; they are
committing folly after folly, thus aggravating the situation and
hastening
their doom. All that is true. But nobody can ‘prove’ that it is
absolutely
impossible for them to pacify a minority of the exploited with some
petty
concessions, and suppress some movement or uprising of some section of
the
oppressed and exploited. To try to ‘prove’ in advance that there is
‘absolutely’ no way out of the situation would be sheer pedantry, or
playing
with concepts and catchwords…. The revolutionary parties must now
‘prove’ in
practice that they have sufficient understanding and organization,
contact with
the exploited masses, and determination and skill to utilize this
crisis for a
successful, a victorious revolution.” At the end of the 1920s,
when Stalin revived the theory of a final crisis of capitalism, Trotsky
responded: “Will the bourgeoisie be able to secure for itself a new
epoch of
capitalist growth and power? Merely to deny such a possibility,
counting on the
‘hopeless position’ in which capitalism finds itself would be mere
revolutionary verbiage.” (The Third International After Lenin
[1928]). Some
social democrats also adopted the theory of an automatic collapse of
capitalism, basing themselves on a book by the Polish economist Henryk
Grossman, The Law of Accumulation and Breakdown of the Capitalist
System,
published shortly before the 1929 stock market crash. What
characterizes the
“theory of collapse” (Zusammenbruchstheorie) is that it is
deeply objectivist
and passive, whether in its Stalinist or social-democratic versions, or
any of
the variants put forward by groups claiming to be Trotskyist, such as
the
“International Committee of the Fourth International” of the late
British
pseudo-Trotskyist Gerry Healy in the 1970s. If it was true that the
capitalist
system was about to fall on its own, it would negate the urgent need to
organize
a revolutionary vanguard to win the leadership of the working class. It
should be noted that various Latin American groups who today call
themselves
Trotskyists – including both the Trotskyist Faction led by the
Argentine
Partido de Trabajadores por el Socialismo (PTS – Party of Workers for
Socialism)
and the Coordinating Committee for Refounding the Fourth International
led by
the Argentine Partido Obrero (PO – Workers Party) – produce endless
analyses of
the economic crisis without putting forward a class-struggle program
leading to
revolution. They proclaim the crisis and that’s the end of it. Another
tendency, the International Workers League led by the Brazilian Partido
Socialista dos Trabalhadores Unificado (PSTU – United Socialist Workers
Party),
the direct descendants of the late Nahuel Moreno, present “A Workers
Program to
Combat the Crisis” (Opinião Socialista, 25 September),
but this program
is limited to the capitalist framework. Instead of Trotsky’s call in
the Transitional
Program for an agrarian revolution they want a “radical
agrarian reform”
carried out by action of the (capitalist) state. They seek “state
ownership of
the financial system,” which in Latin America could be a pro-capitalist
measure to save insolvent banks, as was the case in Mexico with the
nationalization
of the banks by President José López Portillo in 1982.
And if they call for a
“wage trigger” or COLA (cost-of-living allowance), namely an “automatic
wage increase
taking account of inflation,” they do not link this to the struggle to
sweep
away the capitalist state and install a workers and peasants government
to
expropriate the bourgeoisie and extend the revolution internationally. The
League for the Fourth International insists, along with the great
Russian
revolutionaries Lenin and Trotsky, that the capitalist system will not
definitively collapse by itself. Despite its many crises, as deep as
they may
be, capitalism will not disappear due to its own internal dynamic. The
working
class has to give it a shove to get rid of this system of exploitation
and
poverty in order to be able to erect on its remains an egalitarian
society in
which production is for human needs rather than for the exploiters’
profits. We
reprint here
the leaflet of the Internationalist Group
distributed at Wall Street protests, calling for working-class
mobilization
against the bank bailout and for a program of transitional demands
pointing to
the only solution in favor of the exploited and oppressed,
international socialist
revolution. ■ The above article was
translated from a supplement to El
Internacionalista (October 2008),
Spanish-language organ of the League for the Fourth International. To contact the Internationalist Group and the League for the Fourth International, send e-mail to: internationalistgroup@msn.com |