imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The Vacuum of World Trade Breaks Down

by Elmar Altvater Friday, May. 01, 2009 at 3:38 AM
mbatko@lycos.com

The unbridled free market was an illusion that gave free rein to greed and speculation and the dominance of the financial markets. Shareholder value made the profits of shareholders absolute and set short-term gain over long-term necessity.

THE VACUUM CLEANER OF WORLD TRADE BREAKS DOWN

The collapse of the export market takes its toll on German labor market in 2009

Interview with Elmar Altvater

[This interview with Elmar Altvater published in: Freitag 3/26/2009 is translated from the German on the World Wide Web, http://www.freitag.de/datenbank/freitag/2009/13/arbeitsmarkt-krise-wachstumsprognose/print.

The political scientist and author Elmar Altvater was a member of the Enquete commission (Globalization of the World Economy-Challenges and Answers, 1999-2002) of the German Bundestag. Today he works for attac and the World Social Forum.]




Is the predicted decline of German economic output of around seven percent to the end of 2009 realistic?

I do not operate any institute that can make econometric calculations. I trust economic researchers who have the necessary instruments. The economic output will decline very intensely; seven percent is possible. If exports collapse 50 percent for Japan and China and if similar dislocations are possible for Germany, it is only consistent if this vehemently strikes back on the whole economy. Considerable social conflicts must be expected.

This is a unique situation in the economic history of Germany.

To the end of the 1960s, this country always had a positive growth. People spoke of an economic miracle and with a time delay also in Latin America, the Asian tiger countries and later in China and India. This period was the exception. This collapse was much deeper than ever before in the history of capitalism after 1945. This is also reflected in a corresponding unemployment.

IS INNER STABILITY ENDANGERED?

Considerable social conflicts must be expected.

Can the striking sales collapse on the export markets be explained by the drying up of many credit streams?

That is certainly a reason but not the only or perhaps most important reason. The collapse can refer back to the change of distribution. The profits increased enormously while mass income remained far behind – everywhere. Thus we have many more billionaires than ever before in history. Billionaires do not consume so much. Millions of employees with low incomes cannot compensate for this so demand falls on a large scale.

Didn’t a changed production method also have effects on demand as with capital goods?

Yes, one must assume enormous profits were gained in financial speculation and simultaneously the profitability of productive investments partly declined. What Marx diagnoses as the fall of the profit rate is still true. With its fall, the demand for investments on markets everywhere in the world also dwindles. Let me refer to another factor. In Heiligendamm, the structural imbalances in the world were a theme at the G8 summit in 2007. At that time when these imbalances, especially the tremendous deficits in the US – both in the budget and in the balance of payments – did not diminish and on the other hand the surpluses in China, Japan and other countries including Germany were not reduced, this led to a serious crisis – a landslide – becoming a regulator. In 2007 it was completely clear: sooner or later the US will fail as the great “vacuum cleaner” of world trade. Germany also profited in its export surpluses from the extreme US import surplus.

Shouldn’t one be more concerned that a demand arises that partly compensates for this breakdown?

Unfortunately, the demand increase will not compensate. The income distribution has favored the profits of capital – and therefore occurred to the burden of wages and salaries. There was no redistribution in the other direction in 2007 when the last chance existed to finally change course. The big question is: what will be the resistance of the capital groups? We are in a situation in which the bank disaster is a very dangerous crisis symptom because the collapse of the financial system threatens and this has systemic significance so that huge bailout packages are crafted.

But these are hardly suited to do anything for the absent demand that you lament.

…Absolutely not. Banks are re-capitalized after they speculated away their own capital. Or “bank banks” are founded to take over toxic securities. Allowing banks to hoard for future takeovers does not help at all. These are not economic programs but programs to stabilize the financial sector so it does not crash. One must fear – and this is not completely wrong – that the overall economic consequences of such a crash will be grave. A classic case of socialization of losses occurs.

Is the German Federal Labor Office prepared if unemployment breaks the four million mark?

Not at all. Agenda 2010 was marked by the principle “Demand and Promote” and by the assumption that there are basically enough jobs. In the crisis, this now proves to be totally wrong. We will now experience that unemployment not only grows – it will bring a further precariousness of labor if something is not done quickly against this by introducing a legal minimum wage and a basic security financed out of tax funds. The basic security must be oriented in a minimum wage. If that does not happen, there will be a social crash, not only a quantitative rise in the unemployed.

What should and what can be done against this? The flexibility of the labor market is very advanced and the conditions for job seekers are worse than ever.

Yes, to the extreme. The flexibility that was carried out for a long time benefited businesses. This will not change in the crisis because the unions are in a rather weak position through the state of the labor market, the ideological development and their own mistakes. As a result, public campaigns like the Europe-wide or worldwide demonstrations on March 28 are so important.

Report this post as:

Local News

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Tech workers organize A24 6:24PM

Architect Stephen Francis Jones A24 3:01PM

UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for A24 12:34PM

Xyloglossie attitudinale A23 8:07AM

Shadowgun Legends Hack and Cheats A23 7:24AM

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

Amy Goodman interview on cell phone safety A08 10:29PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy