DURING the two decades of spectacular economic growth that Second World War reformist 'theoreticians', Crosland and Douglas Jay, discovered a new 'truth' — capitalism as a system had fundamentally changed its nature; the days of capitalist crisis had gone forever.
According to this view, the right-wing of Labour had accomplished what se sale and the beneis o al would revolution. could be aside amployment and the weltare state reaped for the indefinite future.
In the '80s, after ten stagnation, erosion of state benefits this superficial forecast been But Despre alt UnIS the same followed the a vast array of back such as nothing , years of patient work by production require benefits BESTIAI years of capitalist with growing dole queues and a steady li productive the political and kind democrat argues that the problems of capitalist having state expenditure, a dash of import controls - and the In reality, however, the crisis-ridden character of the capitalist economic system remains identical to maras day. All tre demaro management anc 'neo-Keynesian' economics in the world will to change HALUI C Under capitalism, production is in the hands of private capital. Private capital has only one master that is profit. The constant attemot to expand means that compete with one another. a restrained form, for the big monopolies.
o gal duvantages tricy constanty revamo tre process, substituting complex and more expensive machinery for the living labour of the worker. capital invested in production constantly grows.
Production and productivity also grow, but the de not grow as democratic the rate of profit falls In an other funds capitalist capacity is expanding.
competitive firms, throughout the economy.
Capitalist have to • This is even the case, in can't tundamentally alter fall in the competition between capitalists and the struggle of the working class to benefit from the increase productivity of their labour (which, at a time o expansion, is likely to succeed). means that profits etfort to counter this, capitalists will slow down their rate or caonal accumulation.
and more remunerative outlets for their foreign investment in labour-intensive service industries)
De a decie investment goods, just at a time when productive cutbacks, .of and so on transmit the slump governments can tinker adopting. various Stads ti demand, investment subsidies, and so on. But they its cause, which lies in the structure of production Indeed, by stimulating spending at a time when capitalists are cutting back production due to the rate of profit, governeis introduced a new dimension to capitalist crisis — chronic cano olen acure, Inacion.
doing decade of the 'great depression' and over the past years:
seeking 1970s 'Worst' year '30s "70 -6.7% -1.4% less (1931) (1974)
with this by little more than it did in th 'slump-and-boom bourgeois whereas the former Socialist Challenge All that the social democrats have succeeded in Faltering the shape happened in the The , what happened - the 1930s -economic growth, 1930s and 'Best' year Decade as a '30s '70s 30: 70s +8.8% +8.2% +21% +23% (1934)
In other word», the economy grew in the 1970.
'30s but the cycle Trotsky once compared the methods of franl politicians and reformists by wanted to attack the working Serlha: class with a knife in the back the latter emplos small but regular doses of arsenic. That is true o their economic policies as well as their politic.
20 March 1980 Page 5