Сapitalism Virus & Economic Crisis

This Week’s Events Through Eyes Of Conscious Worker. #11

The thing that the economists had warned us about is finally here: we’re heading towards another economic crisis. Various financial analysts and the owners of large companies have been mentioning the possibility of a new crisis in 2020 since at least the summer of 2019. Raymond Dalio, a famous American investor, even predicted that the crisis is expected to hit us either in March or April this year.

The capitalist economic formation suffers from repeating crises of overproduction. These crises are an integral part of capitalism and, therefore, cannot be avoided. Business owners always try to cut their expenses. Since they do not want to sell their machinery or their real estate, the easiest solution is to fire some of their workforce or, at least, cut their wages. And it all takes place before our very eyes. We are talking about the employees of LDZ and Air Baltic in Latvia, HSBC and Honda staff worldwide and the list keeps growing. Smaller firms simply go belly-up and their former owners, who dreamed about becoming millionaires, become salaried employees and sometimes even jobless beggars instead. Part of the workers refuse to give up and start fighting against their employers with the help of trade unions.

However, businesses will not just sit back and suffer losses. They will use the state as a tool for control and coercion in order to grant themselves tax breaks and other benefits. The businesses use mainstream media to push the narrative that the entrepreneurs are struggling and are in dire need of assistance. The state will help them. At the expense of the working people, of course. Yes, the very same workers who are exploited and sacked by ruthless business owners. That’s how our democracy works.

But we are not just talking about the coronavirus, mind you. I should also mention the empty shelves and the lack of salt, grain and toilet paper. All these blind adepts of capitalism were laughing at empty shelves during the last years of the USSR. They were amused by the lack of goods, which, ironically, was deliberately caused by the proponents of free market in order to hasten the dissolution of the county. These frauds kept telling us that under capitalism we would have more goods that we could ever imagine and no shortages would happen ever again. That’s great, right? Not so much if you lost your job and you are left without a penny in your pocket. But hey, at least the shelves are chock-full of food now!

Riga. Factory “Lignums”. About 1,000 workers

And herein lies the question. Why would you rush to the store to buy so much food if we have an overabundance in supply? Maybe, people are afraid that the vast majority of the food is brought in through international trade and would simply disappear if the borders were to be closed. Maybe no one simply trusts the government and its empty promises about our food security?

The Soviet economy could ensure steady food supply for its citizens as well as protect them from outside military threats. But the ruling class in Latvia does not care about its citizens’ well-being. All they want is to collect more taxes and cling to power for as long as possible. What will the working people say about this? Maybe it is time for us to figure out how the economy could benefit every worker and not just a handful of parasites who leech off our labor. Maybe it is time to create a system, under which no worker will fear losing their job and no crisis in any capitalist nation could affect the lives of the working people in this new and just society?

The conscious worker