Socialists Point to Moribund USA as Proof of Concept
World Socialist may get a lot of flak for being a dogmatic propaganda rag, but the quality of articles — and insight — is high. Even if you’re a right-winger, you can derive useful knowledge from the pulse of their analysis, because they take a larger perspective on history and so show us trends beyond the immediate through the immediate.
Case in point:
We are, in fact, holding this congress in the midst of a major turning point in world history. The collapse of the US housing and credit bubble has rapidly developed into what is widely acknowledged to be the greatest financial crisis since the Great Depression. Governments, central banks and economists can only guess how cataclysmic the consequences of the US financial meltdown will be. But they are forced to recognize that, in the best-case scenario, the world is in for a protracted period of economic stagnation and financial volatility. Whatever the short-term outcome-which must include as a real possibility a financial panic that plunges the world into a new Depression-the current crisis has dealt a massive blow to the credibility of American capitalism, both internationally and, above all, within the United States itself.
The events of the past year have revealed in the starkest manner the vast decline of the United States. Suddenly, before the eyes of the world, the outcome of a decades-long process of internal decay has broken through the surface and revealed a level of financial parasitism and criminality with no historical precedent. Such events deeply penetrate the consciousness of the masses and inevitably lead to profound changes in their political orientation. The rapidity and violence of such changes must have a proportional relationship to the scale of the myths that are being shattered and the scope of old illusions. As the ruling class that most persistently preached the gospel of free markets, private enterprise and individual self-reliance scrambles to bail out Wall Street giants to the tune of trillions of dollars-while millions lose their homes and poverty, unemployment, ill health and illiteracy increase-it becomes impossible to conceal the class divisions that dominate American society.
The ruling class and its ossified two-party system lack any perspective for addressing these problems in a rational and progressive way. Their central concern remains the ever-greater enrichment of a wealthy elite. Elections have been reduced to ritualized and demagogic contests between two right-wing parties of big business, in which the masses of people are effectively disenfranchised. The ruling class does have a response to the crisis of American capitalism: an unending series of wars of conquest and plunder.
While I think the bloviation on the current recession is overblown — it’s a transient issue, brought on by the policies of the 1990s and the consequent over-valuation of America’s “knowledge industry,” and the market is going to undertake a correction for a few years — they have a point: people who thought technology and industry were a firm footing are now opening their eyes to other possibilities.