Economic Crisis: Shift
Article published: Tuesday, January 13th 2009
Scapegoating won’t get capitalism out of this crisis say Raphael Schlembach and Lauren Wroe, Editors of Shift Magazine
With every crisis comes a new conspiracy theory. The current favourite alleges that Lehman Brothers transferred 400 billion dollars to Israel on the eve of the firms collapse. Inevitably, the first response to any crisis is to point the finger and to ask whos to blame?. During the current economic upheaval, the finger is being pointed at illegal immigration or the irresponsible spending of the working class or the greedy bankers. The problem with these explanations is that a recession is not the result of the errors of a small and elusive groups of people as the conspiracy theorists want us to believe.
Rather crises are inherent in capitalism. There is no solution that will make capitalism crisis-free. We can demand more regulation of the financial sector or the nationalisation and democratic ownership of banks. But capitalism’s financial crashes are based in its inherent contradictory character with the desire to produce for profit-maximisation rather than social needs.
And this will always be the central goal of capitalist production. An economic slowdown wont change that. There are more problems to come, with indications that speculation with raw materials and food could lead to much bigger misery than the bursting of the credit bubble. It is contradictory and irrational to produce, distribute and exchange resources as is done in a capitalist economy, thus capitalism without crises would be an oxymoron.
Although we have to be wary that our responses to the crisis are not reactionary, moral or ethical criticism of capitalism can also lead to a dead end. This second set of responses may fall into the trap of moral opposition, where it is not the others who are greedy or to blame but where we all have to join in with a wartime-like effort to overcome the worst. This is where we see the argument for austerity measures introduced, from wage cuts to fewer holidays.
We shouldnt be asked to tighten our belts however. Instead, the Left should take the crisis as an opportunity to push for more, to push for a system that puts our needs and desires above profit, to avoid limiting ourselves and scapegoating others.
Shift Magazine [www.shiftmag.co.uk] is a quarterly, Manchester based discussion magazine for the radical Left, taking in everything from the Camp for Climate Action to the anti-globalization movement.
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