Capitalist Economic Crisis 2


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Second version of earlier presentation with more themes, slides and issues.This presentation will be often updated and customized.

Published in: Economy & Finance, Technology
  • The excerpt from Now and Then is really good. I'd love to hear your views on how a socialistic society would be free from an economic depression & cycles.
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  • Now and then: a word from John Steinbeck

    ' I remember ’29 very well. We had it made (I didn’t but most people did). I remember the drugged and happy faces of people who built paper fortunes in stocks they couldn’t possibly have paid for. ‘I made ten grand in ten minutes today. Let’s see – that’s eighty thousand for the week.’

    In our little town bank presidents and track workers rushed to pay phones to call brokers. Everyone was a broker, more or less.

    At lunch hour, store clerk and stenographers munched sandwiches while they watched the stock boards and calculated their pyramiding fortunes. Their eyes had the look you see around the roulette table.

    I saw it sharply because I was on the outside, writing books no one would buy. I didn’t even have the margin to start my fortune. I saw the wild spending, the champagne and caviar through windows, smelled the heady perfumes on fur-draped ladies when they came warm and shining out of the theatres. “Then the bottom dropped out, and I could see that clearly too because I had
    been practicing for the Depression for a long time. I wasn’t involved with loss.

    I remember how the Big Boys, the men in the know, were interviewed and re-interviewed. Some of them brought space to reassure the crumbling millionaires: ‘It’s just a natural setback’; ‘Don’t be afraid – buy – keep buying’.

    Meanwhile the Big Boys sold and the market fell on its face.

    Then came panic, and panic changed to dull shock. When the market fell, the factories, mines, and steelworks closed and then no one could buy anything, not even food. People walked about as if they had been slugged . .

    Then people remembered their little bank balances, the only certainties in a treacherous world. They rushed to draw the money out. There were fights and riots and lines of policemen. Some banks failed; rumors began to fly. Then frightened and angry people stormed the banks until the doors clanged shut.

    John Steinbeck
    A Primer of the ‘30s
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Capitalist Economic Crisis 2

  1. 1. Welcome to Capitalism
  2. 2. It's exciting!
  3. 3. You too can be a player! (You have no choice.)
  4. 4. Get your share
  5. 5. Your share? Of what?
  6. 6. Then & Now John Steinbeck
  7. 7. Behold Capitalism...
  8. 8. Questions 1.Where did it come form?
  9. 9. Questions 2.How deep will it go?
  10. 10. Questions 3.How far will it spread?
  11. 11. Questions 4.Can it be stopped?
  12. 12. Questions 5.What's our response?
  13. 13. The bailout
  14. 14. $700 billion “Welfare for the rich. ... Broke people are about to bail out rich people” -Wanda Sykes
  15. 15. Why is it that the wealth of a capitalist country is never shared but the debt is? -Karl Marx
  16. 16. $700 Billion is a lot of money ● $750 billion : cost of the war on Iraq and Afghanistan 850 million human beings are starving 2.6 billion lack sewage services 800 million are illiterate 640 million children lack adequate housing... And so it goes...
  17. 17. In your dreams...
  18. 18. (Sigh) More dreaming...
  19. 19. So where did this crisis come from?
  20. 20. Confused?
  21. 21. Topics for discussion: FACT:The post war boom ended in 1974
  22. 22. FACT: The “real” economy is in trouble
  23. 23. Work Harder!
  24. 24. Work Longer!
  25. 25. For Less!
  26. 26. FACT: It took the destruction and armaments build up of the Second World War to pull the world's economies out of the last Great Depression (1929/33)
  27. 27. FACT: The sub prime mortgage collapse while a symptom is not a main cause of the crisis
  28. 28. The sub prime myth
  29. 29. Where is the US debt at?
  30. 30. FACT: Governments have always intervened in the economy...but always on the side of the capitalists. The free market is a neo liberal myth.
  31. 31. FACT: When you drive down incomes you also drive down consumption.
  32. 32. We borrow to survive because real wages have fallen
  33. 33. In 1980, world financial assets (bank deposits, government and private securities, and shareholdings) amounted to 119% of global production; by 2007 that ratio had risen to 356%.
  34. 34. Invest in claims on new value and profit Let's call that Fictitious Capital
  35. 35. FACT: This is not just a “Financial” Crisis ...but a crisis of the whole system
  36. 36. Rudd to the rescue.... quot;This strategy is designed to help pensioners, carers and families, and first home buyers.quot; $10.4 billion
  37. 37. Do your true blue Aussie duty and CONSUME
  38. 38. RESPONSE: 1. Stop bailing out the capitalist system.
  39. 39. RESPONSE: 2. Nationalise the banks and run them in the community interest. Start by re-nationalising the Commonwealth Bank.
  40. 40. RESPONSE: 3.Give pensioners and the unemployed a living wage now.
  41. 41. RESPONSE: 4.Put the entire surplus (and borrow at least the equivalent) and invest immediately in renewable energy conversion, public transport, public health, public education & public housing.
  42. 42. Those questions again: 1.Where did it come form? 2.How deep will it go? 3.How far will it spread? 4.Can it be stopped? 5.What's our response?