Socialist Resistance

An archive of socialistresistance.org, 2006–2022

Can capitalism solve the debt crisis?

3 February 2011

In the name of ‘deficit reduction’, the ConDem coalition has launched a reactionary onslaught against all working people in this country. They want to make us pay for the economic crisis that was not of our making by reducing the debt by £81 billion over four years. To do this they have launched a massive programme of cutting pay, benefits and pensions, slashing public services, and privatisation, including most of the NHS.

The alternative now emerging on the left is government-led state investment and nationalization to stimulate sustainable development. Socialist Resistance supports such measures, while recognising this can only lead to a temporary alleviation of the situation for working people. But in the long run we need to mobilise and fight for a government that is prepared to directly confront the power of capital and challenge the legitimacy of the debt by an audit, tax the wealth of the rich, and make them pay for the crisis they have created. The need for a broad party of the left willing to meet these challenges head-on is more urgent than ever.

Photo: By Scorpions and Centaurs

2 comments

Steve Hall · 8 February 2011

The figure of £81 billion in cuts is incorrect (the figure is £156bn by 2016) and what the Government is doing right now is not to immediately reduce Britain's 'Sovereign Debt' but to reduce the annual budget deficit which will actually see Britain's Sovereign debt increase to £1.36 trillion by 2016

Ivor Timson · 16 March 2011

Just posted a blog titled- Economists, Society, THE BBC Squiekies and their toxic propaganda- ivortimson.blogspot.com
I think this is relevant to this article. It concludes- Surely it is time for a complete rethink about the type of society we want and are in desperate need. Let genuine democracy prevail and let it start through community groups determining their own outcomes. Let's end this stupidity and look forward to the real big society. Ivor Timson