By Zely Ariane
“The global financial crisis is not because of a lack of regulations or because capitalists cannot be controlled; bur rather a crisis of over production throughout the world, namely too many good for sale (for profit) while (so as a result) the people do not have the purchasing power.” [Karl Marx, 150 years ago]
This crisis will be a permanent one. There is no other solution that can be pursued by capitalism other then to prolong and minimalise the impact through ongoing state intervention. This is because under capitalism, the state represents an instrument by which to rescue it from crisis; an instrument to protect profits, distribute misery, and provide the ordinary people with just enough to survive.
Trillions of dollars have already been provided to bail out bankrupt capitalists in the name of economic stimulus, far in excess of what has been given to the poor, so it is already clear that it will not have any basic impact on increasing the purchasing power of the ordinary people.
This systematic crisis has in fact occurred because the capitalist system that pays cheap wages (not in accordance with the actual value of workers’ labour) and the huge amounts of money that are not invested in the real sector (but in financial speculation, shares, portfolios, currency exchange and commodities) so that as a consequence, workers and ordinary members of the public have no purchasing power.