The Economic Crisis-The Demise of Capitalism

In the mid nineteen eighties the Ronald Reagan administration along with British Prime Minister Margaret Thatcher developed and implemented a string of deregulation policies and programs that were sold to the uninformed public as being progressive and good for all. Supported by the Evangelical right it was used as a tool to fight the threat of communism and the Iron curtain.

With the election of Ronald Reagan came the dawn of a new era of unfettered capitalism. Part of that capitalistic ideal was the push for a global economy where corporations could move their capital interests to areas of the world contributing the cheapest labour. The Corporation At the same time a watershed moment came with the destruction of union rights with the legislated end to the aircraft controller's strike in the U.S. Air Traffic Controller's Strike

Throughout the late eighties and nineties this uncontrolled greed was supported by governments both Republican and Democratic in the U.S. as well as Liberal and Conservative governments in Canada. Many other First World governments worldwide bought into this uncontrolled grab by setting policies to remove restrictions to complete corporate control without democratic, public scrutiny. Australia, New Zealand, England, Japan, and Russia are examples. In fact the economic war placed on Russia is one of the main reason's for its demise.

In Canada the excuse for allowing economic policies as NAFTA, GATT and Globalization came from the propaganda around deficit reduction. Two recessions in both the eighties and nineties were engineered to ensure the public would buy into deficit reduction, yet they were built on false premises. Canadian debt compared to GDP at the time was less than the average Canadian citizen's debt versus their income at the time. The result of this indoctrination was the dismantling of many of Canada's social and cultural programs. CBC was gutted. Health Care was cut back and privatized in many provinces such as Alberta and B.C.

It was even worse for other countries in the world. New Zealand almost faced economic collapse from being one of the world's economic leaders. The Reserve Bank and New Zealand's Economic History (see Turbulent transition 1973-1993)

Naomi Klien in her book The Shock Doctrine eloquently and succinctly describes the entire method of this Neo-Liberalism.

Then came George W. Bush. By his orchestrated and corrupt rise to power have come eight years of economic policy and political turmoil that has left the world on the brink of total disaster. We are now facing the worst economic crisis since the 1929 stock market crash, which incidentally we were told by the capitalist pundits would never happen again.

George W. Bush's economic policy was driven by the free market capitalistic values of Milton Friedman the guru of the Chicago School of Economics.

The world is now on a path of trying to find a balance to offset the economic collapse. Governments are scrambling to print and place money into the economy in an effort to stimulate their financial mess. The problem is the money they are spending are propping up the very oligarks that brought the world to its knees. Job losses are becoming a daily event.

The social and human cost of this collapse are only beginning to be felt. Commodities, manufacturing, stock markets, creditors, and stock markets are all falling apart. In fact entire countries are facing bankruptcies. Iceland and Britain are examples of the impact of this self - interest economic drive.

We are facing the complete collapse of the capitalist system. As sure as what caused the collapse of the Communist empire. The difference is this collapse is global and forces the world into a threat out of control. There are no saviors. Obama is seen as the light of hope and change. However closer analysis may prove that wrong. In an article for The Nation written by Naomi Klien in June of 2008 she describes a sober second thought.

One of the major influences on economic and political power worldwide is a secret group known as the Bilderbergs. It is interesting that when it became clear that the Democratic nominee for president would be the next president both Hilary Clinton and Barak Obama met with this secretive group. Shortly after the first election of Stephen Harper a meeting of the Bilderbergs was held in Ottawa hosted by the new Prime Minister.

Several questions arise. How has this demise of capitalism affected the most pressing issues mankind is facing- Global warming, starvation, health, etc.? All have been put on the back burner. Disaster economics in its prime.

Socialist ideology seems to be a good policy when it can save the right wing capitalistic system but is rejected as radical when the anarchy of unfettered capitalism rules. The deregulation philosophy has sold us the concept of eliminating all traffic lights in a city and allowing total anarchy. Trouble is we all are affected by the accidents and human carnage that will occur.

We need to change our basic value structure. Instead of narcistic self interest and greed we need to develop a democratic conscience. Our environmental crisis demands sustainable economic policy in conjunction with balanced life support systems. Instead of unfettered growth, we need sustainability.

Before the industrial revolution many of the world's population was sustained by their own ability to grow and raise food for themselves. Whatever they had left they sold to the cities and towns in order to buy the products they couldn't grow to sustain themselves. Neighbors assisted each other towards their survival. They had a social connecton and responsibility.

What was wrong with this type of society it was still based upon the Master-Servant mentality. There was little for those who found themselves in difficult times without a family or friendly support system. 18th and 19th century literature supports this lack of social conscience. In fact it was the lack of support for the common person that brought about the writings of Karl Marx and Lenin.

Recent events have proved the anarchy of an unregulated Capitalistic dogma has resulted in the deflation of our economic system. This deflation has only begun. We need new economic policies. Keynes gave the world a glimpse at a new form of economics. We need to look beyond his dream to a truly sustainable economic structure. One based not on continuous growth but on protection of human basics. Food, shelter, health and happiness. Limits to wealth and a clear distribution of wealth. As the world population grows we need to meet its needs. Not the needs of a few greedy, wealthy, arrogant, self acclaimed upper class, power mongers.

Armand