64. World economic crisis: a Marxist analysis of the coronavirus crunch

Socialism

The capitalist economic system is dysfunctional and obsolete. In the US, 10 million workers filed unemployment claims in the last two weeks of March. In the UK, a million workers filed Universal Credit benefit claims in the last two weeks of March. Just over a decade after the ‘credit crunch’ and Great Recession, the Covid-19 pandemic is causing a ‘corona crunch’ and could pitch the world into a second Great Depression. But the world economy was heading for a serious downturn even before the virus. In fact, capitalism itself has been growing increasingly weak, unstable and dysfunctional over a long period. Why? Marxism points out the capitalist system is riddled with contradictions, and today has long outlived its historic usefulness. So what are the main economic features of the current nosedive, and what sort of problems - and solutions - could the Marxist toolbox point us to? This episode of Socialism takes a short look at the world economic crisis: a Marxist analysis of the coronavirus crunch. Plus: we respond to the Labour Party leadership election results. Further reading The new crisis and its consequences: http://socialismtoday.org/editorial-the-new-crisis-and-its-consequences Brexit and British capitalism - why Johnson's juggernaut is set to jackknife: https://www.socialistparty.org.uk/articles/30184/29-01-2020/brexit-and-british-capitalism-why-johnsons-juggernaut-is-set-to-jackknife 10 years since the financial crash - the socialist answer to capitalist crisis: https://www.socialistparty.org.uk/articles/27918/12-09-2018/10-years-since-the-financial-crash-the-socialist-answer-to-capitalist-crisis Universal basic income - what do socialists say? https://www.socialistparty.org.uk/articles/24401/08-02-2017/universal-basic-income-what-do-socialists-say Understanding Marxist economics: http://www.marxism.org.uk/pack/economics.html How a socialist economy would work: https://www.socialistparty.org.uk/articles/6012/16-10-2004/how-a-socialist-economy-would-work