Economic and Social Crises Keep Deepening: 48 Points That Will Shape the Future

By Shawgi Tell

Not only have the policies of the rich at home and abroad not stopped economic and social decline, the rich are actually taking social irresponsibility to new levels and making things worse worldwide. They are unable and unwilling to solve serious problems plaguing humanity. Opening the path of progress to society is not on their agenda.

Connecting just a few dots in an intelligible way produces a clear picture of the destruction unfolding worldwide. It is no accident that more people are writing about a miserable dystopian future where people will have to develop new creative ways of defending the rights of all. The information below is especially timely given the cheap euphoria displayed recently by the short-sighted rich and their political and media representatives about the “solid” 850,000 jobs the U.S. economy “added” in June 2021.

1. Inflation is increasing rapidly at home and abroad and the dollar’s purchasing power is still falling.

2. Globally, supply chains affecting many sectors are not operating smoothly; many are worried about contrived and non-contrived disruptions lasting for months, even years.

3. Ransomware incidents and major cyberattacks are not diminishing.

4. Millions of U.S. workers are misclassified as contractors, which means that they do not have (generally weak) protections.

5.  Thousands of companies at home and abroad are “zombie companies”—i.e., they don’t make a profit after paying down their debts, they just live a dead life.

6. Student debt in the U.S. keeps soaring.

7. College tuition in the U.S. and elsewhere keeps climbing.

8. Marriage rates in the U.S. are at an all-time low.

9. Birthrates are declining globally.

10. The U.S. experiences a higher infant mortality rate and a higher prevalence of obesity compared with most OECD member countries.

11.  The number of Americans who have moved back in with family or friends over the past 18 months is extremely high.

12. Homelessness is high nationwide and increasing significantly in some major U.S. cities; crime is also up.

13. Various “reforms” in countless sectors in many countries are superficial, phony, and non-substantive.

14. Anxiety and depression remain widespread worldwide.

15. Anti-depressant use remains high.

16. Mass murders and killings have increased in recent years in the U.S.; so have social and civil unrest.

17. Everyone everywhere is skeptical of the mainstream media and struggling not to be confused, ambushed, and humiliated every hour.

18. Around the world hundreds of millions have joined the ranks of the poor over the past 18 months.

19. Globally, well over ten million business have disappeared permanently and thousands more will disappear in the next five years.

20.  Leading economic experts and officials have no real solutions for anything and people continually have low levels of trust in “experts” and government; the rich continue to operate with impunity.

21. There is more polarization, division, and anger in society.

22. Poverty and inequality keep growing worldwide; wealth concentration is staggering and unprecedented.

23. Digital addiction and attendant problems won’t stop increasing.

24. More U.S. college and university administrators, trustees, and leaders are abandoning the intellectual mission of colleges, restricting faculty voice, and turning college into Disney and fun.

25. Getting simple things done is taking longer and becoming more convoluted and frustrating, especially when dealing with retailers, companies, and various agencies.

26. Surveillance and police-state arrangements are multiplying rapidly and becoming more diverse and sophisticated at home and abroad.

27. The media blackout on thousands who continue to experience serious side effects from vaccines continues.

28. Newly-elected “progressive” politicians in the U.S. and elsewhere are proving to be as ineffective as the “old guard.”

29. Privatization and deregulation keep increasing and wreaking havoc worldwide.

30. Anglo-American imperialism thinks that constantly treating China and Russia as bogeymen will keep fooling the gullible and divert attention from deep problems in the Anglo-American world.

31. The unionization rate of American workers is at a historic low, which is bad for all workers in all sectors.

32. More than 130 million working Americans can live off their savings for six months or less before going broke.

33. Mergers and acquisitions continue apace in 2021, concentrating even more wealth in even fewer hands.

34. Central banks around the world keep printing phantom money while stock market bubbles grow larger.

35. The U.S labor force participation rate remains low.

36. The number of long-term unemployed (27 weeks or more) in the U.S. is still increasing.

37. Millions of Americans have started to lose their jobless benefits.

38. More than 40% of Black families and Latino families in the U.S. have no access to an employer-sponsored retirement plan.

39. Black and Latino Americans are experiencing the biggest decline in life expectancy in decades.

40. In recent years, overall job quality for Americans has deteriorated significantly.

41. At least thirty million Americans lack access to high-speed internet.

42. The U.S. opioid overdose crisis, which pharmaceutical companies were recently found guilty of sponsoring, persists.

43. In Africa, nearly 40% of employed youth are considered poor.

44. Around the world, nearly one out of ten people experience hunger and the number of undernourished people has grown by millions in recent years.

45. The official unemployment rate exceeds 10% in at least 12 countries in (Western and Eastern) Europe. Fourteen countries fall into this category for North and South America. The real numbers are higher.

46. More than 27% of youth in Central Asia and Southern Asia are not in employment, training, or education.

47. In the past five years more countries have experienced violent conflict, while violent crime across the world has also increased.

48. Despite endless happy economic news in the mainstream media, economies around the world are far from recovering; many never recovered from the Great Recession of 2008 and mass vaccinations will not solve deep structural economic problems.

The list goes on and on. This is the tip of the iceberg. Numerous problems persist on all continents. The facts above do not paint a picture of a bright and promising future for humanity. Widespread destruction prevails in the obsolete neoliberal world.

But there are also openings and contradictions that people from all walks of life are being compelled to harness in order to advance the public interest and restrict the illegitimate control and authority of major owners of capital. The desire for real progress is palpable and growing; it emerges from the concrete conditions as they present themselves today. The international financial oligarchy cannot provide any solutions to the problems plaguing humanity today, they just have more catastrophes in store for everyone and are blocking the empowerment of the people. None of these serious problems can be solved, however, so long as the people remain marginalized and disempowered. A new direction, orientation, and public authority are urgently needed.

Humanity is entering a new and deeper crisis with qualitatively different and more dangerous features. Crisis is a turning point that contains both peril and opportunity. Crisis is not always just a negative thing; it means things cannot continue in the old way and something significant is going to have to eventually give. It usually takes a serious crisis or trauma to catalyze and propel much-needed change. In this way, crisis overcomes stagnation and complacency and sets the stage for something new. The negation of the negation operates with a greater vengeance in such defining moments, giving rise to a new synthesis, a new equilibrium, which gives rise to yet another dynamic which must assert itself sooner or later. The dialectic lives and cannot be extinguished. What comes next in the complicated here and now is unfolding consciously and spontaneously.

The pace and rate of change today is exhilarating and people’s desire to protect the social and natural environment is growing. The trial of strength between capital-centered forces and human-centered forces is bound to increase because conditions are demanding a new authority that affirms the rights of all. An alternative is necessary and possible. What this will look like is in the hands of the people themselves. Only they can be relied on to usher in a bright future for humanity free of privileged private interests wrecking the social and natural environment.

Shawgi Tell, PhD, is author of the book “Charter School Report Card.” His main research interests include charter schools, neoliberal education policy, privatization and political economy. He can be reached at stell5@naz.edu.

As the Global Hegemon Collapses, Can Private Property Be Far Behind?

[PHOTO: Al Drago/Getty]

By Steven Miller

Tuesday’s Presidential debate showed the world how the politics of collapse are determining the election of the next President of the US. It was reminiscent of the Roman Senate when the Goths sacked Rome in 410 AD. Senators gathered in the Forum, protected by the Praetorian Guards. Suddenly one Senator would leap up and cry, “I propose a law making sacking the city illegal.” Everyone voted and the resolution passed unanimously.

The world was watching Tuesday and was shocked at how low the politics have sunk in the US.

There are actually real issues these days — COVID, systemic economic collapse, institutional racism, rampant police murder. But instead we saw the leadership of the most powerful country in the world, the global hegemon for the last 70 years, collapsing in real time right there on television. The candidates could not have an intelligent discussion of the tremendous issues that face the country. No vision, no ideas, no dialogue, no programmatic solutions. The Democrats, of course, agree with Trump on 80% of the issues and therefore dare not make programmatic attacks. The debate proved nothing more than the old adage that when you lay down in the gutter, you do not wind up smelling like a rose.

Meanwhile the organs of the State are fighting themselves. This is characteristic of an objectively revolutionary situation. The FBI openly counters and reports to the American people to disprove the President. The President constantly usurps authority he does not legally have, including creating his own private police force aided and abetted by the most privatized elements of ICE and Homeland Security. The CDC, the Post Office and the Justice Department, every organ of the State, are politicized and coerced into being part of Trump’s election campaign.

The Senate and the House are in stalemate and cannot figure out how to help the American people now that 50 million are unemployed, have lost their healthcare, and are facing a looming Rent Apocalypse. Paralysis is another characteristic of an objectively revolutionary situation. The Republicans are risking losing the Senate as they try to jam through a new Supreme Court Justice before the election. People are beginning to see that these “honored institutions of democracy” are far from neutral.

Twenty-six million people hit the streets in righteous wrath over the murders of George Floyd, Breonna Taylor and so many others. Their demands crystalized around defunding or abolishing the police, which acts like an occupying army in a country that treats non-violent civilians with the tactics of the War of Terror, while white supremist vigilante gangs stalk them in the dark.

The institutions of the US State were forged in slavery and infused with structural racism. One of these, the Electoral College, was established to prevent the popular vote from determining the President. It will begin to tear itself apart after election day on November 3. No one knows whether or how the institutions of government will hold up in the coming months before a President is inaugurated on January 20… or after.

A major indicator of how things are going will be the actions of the corporate media industrial complex, perhaps the most sophisticated thought-control apparatus ever devised. These corporations have given Trump billions of dollars of free advertising, and give credence to his slightest whim. They now work in tandem with social media, which openly operates with malign intent to confuse the situation even more. It was therefore significant that one day before the debate, the New York Times, released information about Trump’s taxes that reveal he doesn’t pay any.

Property Depreciation as a Legal Invention

Now the political exposures are beginning to enter the sacred zone of private property, an issue the capitalist class prefers to keep in the dark. The very State, legal system and tax code that is coming under public scrutiny is designed to give uber privileges to private property. This is what the Trump crime family exploits, as does every corporation in America.

Tax laws allow tangible private property, used for business, to be depreciated. Personal property, like a home, cannot be depreciated, but a landlord can depreciate rental property because the theory is that tangible property is “used-up” over time, so the property owner can “depreciate” it.

But depreciation is simply a legal figment. How do we know? When an owner sells business property, the depreciation starts all over again from the top! And anyone who is forced to rent knows quite well that the value of property appreciates and gets more expensive over time. It doesn’t depreciate at all.

Then the property owner gets to deduct the cost of maintaining the property, so s/he gets a double dip. And since depreciation is a business expense, it is a deduction from business income. The law allows the owner to get cash generated in the current year without paying any tax on an amount of income equal to the amount of depreciation.

The legal scam then is elaborated. Trump (and every corporation) borrows money to purchase property, like a golf course, say for $100 million. They take the depreciation of course. Then they get an appraisal of the property that claims the property is actually worth $300 million. The appraisal, say, is three times what it should be, but the inflated appraisal can be used to provide collateral for additional loans.

In other words, the happy capitalist buys property with other peoples’ money, gets paid in tax breaks, ie public money, to depreciate it, and then falsely appreciates the value, to borrow more money to buy more property, etc etc. What a deal!

Inanimate private property in itself has these rights, not people. They are not the rights of the owner, because if the owner sells the property, they no longer get the privilege of depreciating it. So private property is a legal entity that has far more rights than human beings, just because the law says so. OMG – if ordinary citizens can challenge a system of legal institutions that are infused with systemic racism, how far can they go? That is part of the transformative power and the danger to the capitalists of this moment.

Alone in the world in its COVID response, the US put private property in control of the emergency. America is learning the hard way that there are issues that absolutely need a federal government to take control, propose a single strategy and coordinate resources. This is something that private property can never do.

Extractive Capitalism

Since the capitalist system collapsed in 2008, it has been sustained on life support by public money. US corporations, especially the financial sector, have received $25 trillion to $39 trillion in direct payments (David Sirota, Jacobin, “We've Always Had the Money for Medicare for All - We've Just Given It to Corporations Instead”, 18 June 2020). Capitalists got to onshore $23 trillion of profit two years ago. Add in direct subsidies through the military budget of $1+ trillion a year and massive billion-dollar subsidies to the petroleum and pharmaceutical industries.

Yet the economy collapsed after the advent of the virus in one week, the biggest collapse in history. Add in the actions of a criminal President and suddenly the wheels are coming off the bus. Or are they?

Is it really true that the most powerful capitalist class in history, with an unsurpassed military and three centuries of experience in maintaining its rule both legally and illegally, is so inept that they can do nothing about an unpredictable leader that destabilizes everything?

The government is clearly the last profit center left in capitalism. Just as with depreciation, the actions of government alone can create the legalities that create markets for private property. Hence the battles within the government and the State apparatus. The various capitalist gangs do not have real strategic differences, but they certainly differ tactically on whether to maintain bourgeois democracy to achieve their goals.

Corporations merged with the government long ago; now they are rapidly merging with the State, as the provision of police services are increasingly under the control corporations. Since 2003, the Department of Homeland Security has been spending billions a year to affect this change. Private property is unified in the vision of disaster capitalism: take advantage of the situation to re-organize society to augment private profits. They are not moving slowly. They are re-creating the economy as an extractive industry.

Trump’s Secretary of the Treasury, Steve Mnuchin, for example, was instrumental in creating the “rentership society”. After 2008, financiers understood that there could never be broad home ownership again in the United States. So they evicted millions from their homes, while graciously letting some stay as long as they paid rent, a sum that was dramatically higher than what they paid before. These policies drove millions out of the communities they had lived in for decades even as large amounts of new housing was built. But that housing was built to be empty, to be speculative property that supported hedge funds and not people. That is an extractive industry that sucks wealth out of communities, just as petroleum corporations extract wealth out of the ground.

US capitalism has big plans to transform other branches of the economy into an extractive machine. Constant privatization of every aspect of life is the method. Serious observers of England’s Brexit insanity recognize that when the dust settles, US-style privatized health care intends to invade and try to take over. Trump’s new Supreme Court nominee will likely vote to end Obamacare, and eliminate health care for another 25 million people or so. What can possibly arise to fill the void? What can allow US corporations to further invade public European health care systems?

Maybe it’s the new Apple watch?

Apple released the latest device during all this turmoil, and proudly stated that it was after long discussions with their “partners” in the insurance industry. Why? Could it be because the insurance industry is the main organizer of health care in the US? What is the connection here?

Haim Israel is a strategic director of Bank of America and head of the report, “The World After Covid Primer.” (www.bofaml.com/.../the_world_after_covid.pdf)

The report notes that 1/3 of the world’s data resides in the healthcare industry. It notes that value of data to the economy will increase from 30l billion euros in 2018 to 829 billion euros in 2025.

“We found that while the data generated is rising exponentially, just 1% of it is analysed or monetised effectively. The post Covid era could benefit technology companies who can analyse and monetise such data, but adoption is likely to vary by region owing to privacy concerns and regulations.”

And..  

“Big Government: a new social contract -- Growing surveillance, inequality and the current inadequacy of some healthcare systems versus others highlighted by the current crisis will act as a catalyst for change in politics, furthering populism trends and increasing the risk of social unrest. Covid-19 has handed governments a new social mandate to protect their citizens. Governments will exert greater influence on businesses with shareholder supremacy potentially eroding in favour of stakeholders. Further, this crisis has made the technology industry useful – if not vital – for implementing government power. We think this is unlikely to reverse…”

How far can this go? Vandanta Shiva reports in her article, “The Pandemic Is a Consequence of the War Against Life” (September 21, 2020):

On March 26, 2020, at a peak of the coro­n­avirus pan­dem­ic and in the midst of the lock­down, Microsoft was grant­ed a patent by the World Intel­lec­tu­al Prop­er­ty Orga­ni­za­tion (WIPO). Patent WO 060606 declares that ​“Human Body Activ­i­ty asso­ci­at­ed with a task pro­vid­ed to a user may be used in a min­ing process of a cryp­tocur­ren­cy system….”

The ​“body activ­i­ty” that Microsoft wants to mine includes radi­a­tion emit­ted from the human body, brain activ­i­ties, body flu­id flow, blood flow, organ activ­i­ty, body move­ment such as eye move­ment, facial move­ment, and mus­cle move­ment, as well as any oth­er activ­i­ties that can be sensed and rep­re­sent­ed by images, waves, sig­nals, texts, num­bers, degrees, or any oth­er infor­ma­tion or data.

Intellectual property rights, which is what a patent is, are just as much a creation of government as depreciation. It is another form of privilege for private property.

This step turns health care based on bio-data, especially privatized health care, into an extractive industry. We see this approach as well as corporations racing to develop vaccines. Corporations have long developed vaccines for pets and farm animals, but have resisted developing human vaccines, since they do not produce much profit as compared to “treatments” that you pay for across your lifetime.

One reason that government becomes the market of last resort is because economic production is increasingly done by computer systems and robots. As machines replace human labor, that labor cannot be exploited, which is the source of capitalist private profit. But maybe monetized data and data devices allow humans to be exploited for their information, not dissimilar to the exploitation of animals.

So — given these very real developments, with future potential for private profit, is it really likely that the financial industry, which is the major shot-caller in capitalist planning, going to put up with an incompetent, narcissistic, erratic fool for a US President? These boys have run the world since the advent of the Marshall Plan that re-built Europe after World War II. Are they going to give up now? Without even hardly trying?

Unlikely.

The battles we are living through today are a prelude to the battles that will ensue, regardless of who wins the election. The capitalist agenda will remain on the table. They fully intend to culminate their strategy of total privatization. But the story is not over, and the man behind the curtain is private property. The US hegemon is truly fumbling. The rising global popular movement to hold government accountable for public safety and the basic necessities of life in a time of collapse may be diverted for a bit, but it cannot be stopped.

All it requires is class consciousness and abandoning the notions that the status quo will maintain, that incrementalism and piecemeal solutions work and that we can reform our way into a world that puts healing at the top of the agenda.

Everyone's a Socialist in a Crisis

By Tom Bramble

Republished from Red Flag.

One of the most prevalent ideological mantras of Western capitalism is that the market should rule. But as the latest health and economic crises demonstrate, capitalists soon forget their worship of the market when times get tough. They scream for government money, and plenty of it. It turns out that “the market” is fine when it comes to whipping workers to accept lower wages, but when it comes to lower profits, the market can go hang.

Every student with the misfortune to have studied economics at school or university will know that “the market” is the god before which we must all kneel. Markets bring consumers and producers together to ensure an equilibrium of supply and demand, the textbooks tell us. We may all be individuals each pursuing our own private interests, but this selfish endeavour miraculously results in an optimum outcome for all.

You don’t even have to step inside a classroom to have received this lesson. It’s rammed home in normal times in every newspaper, in every news bulletin on the TV, in every politician’s speech. Just listen to them. Governments can’t expand spending on Newstart because “the markets” won’t allow it. Governments shouldn’t ramp up public housing because that will throw property markets into a spin. Competition should be opened between universities because a market in education will sift out the bad providers from the good.

The champions of the market, if challenged to explain how it is that markets consistently result in supplies of goods lurching from shortages to gluts, point to the economic dysfunction of the old Soviet Union as proof that if “planning” replaces the market, a much bigger disaster ensues.

It doesn’t take an Einstein to see what rubbish this is. The last thing any capitalist wants is “free competition”, because that might squeeze their profits. Just look at how the supermarkets have destroyed small shops or how any new industry that emerges is soon dominated by three or four companies globally.

But there’s another angle to this. Capitalists preach “the market” for the working class – stand on your own two feet, don’t rely on the government – but themselves sponge off the public big time. Just look at the billions in subsidies and tax concessions the fossil fuel companies, huge enterprises for the most part, extract from state and federal governments in Australia. The vehicle manufacturers raked in hundreds of millions a year from the Australian government for decades until deciding it wasn’t enough and went overseas. This is why big companies and industry groups hire armies of former politicians to lobby on their behalf in the offices of premiers and prime ministers – there’s money in government coffers and they want it.

And while the capitalists talk about “the market” setting wages for workers, in reality, they don’t really allow the market to do the job. They use the whole apparatus of state repression, the industrial tribunals, the police, the courts to suppress workers’ rights to organise to pursue their demands.

But when a crisis hits all the bullshit about the market is thrown to the winds. And that is just what we are seeing now. Faced with the collapse of the capitalist economy, for the second time in a dozen years, with massive bankruptcies on the table and the stock market plunging by more than 30 percent and more to come, fervent advocates of the free market are now embracing government intervention to save their skins. As the Financial Times put it on 18 March, “World leaders have been forced to tear up the traditional economic playbook in response to the historic jolt to the global economy”.

In the United States, the heart of free market capitalism, capitalists and politicians alike are demanding huge government handouts. As the New York Times explained on 17 March: “Business groups, local and state leaders and a growing chorus of lawmakers and economists begged the federal government to spend trillions of dollars to pay workers to stay home and funnel money to companies struggling with an abrupt end to consumer activity”.

Politicians and their advisers who just a week ago were scorning the idea of “helicopter money”, government payments to businesses and consumers to stimulate the economy, are now trying to outbid each other to push the figure up. The Trump administration, proclaiming a state of war in the fight against coronavirus and the economic crisis, will shortly launch a huge fiscal stimulus program pumping more than US$1 trillion into the economy in two stages, including potentially $1,000 handouts to spur spending. And there will be more to come.

In other times, Trump might have denounced his proposals as “socialism”. Not today. He now boasts that his new package will be “big and bold”. His chief adviser, Larry Kudlow, says that Trump has agreed to do “whatever it takes” to address the crisis. Senator John Cornyn, second highest ranking Republican in the Senate, for whom government intervention is normally anathema, explained: “Our economy, our whole economy is in jeopardy”. Some in the Democratic Party, which in recent years has become the favoured party of Wall Street, are proposing a monthly payment to every American for the duration of the crisis. Alongside this direct injection of funds into the economy, the US Federal Reserve Bank is pumping trillions of dollars into the banks.

As in the US, so too in the rest of the world. The European Commission, which has long insisted that member states keep their budget deficits to 3 percent of GDP, has lifted limits on government borrowing. In 2015, it refused to allow the Greek government to hike spending when faced with unemployment of 20 percent, but is now telling governments it’s open slather. The future of European capitalism is at stake, so nothing is off the table. The Swedish government is allowing businesses to defer tax payments for up to a year at a cost equivalent to 6 percent of GDP. Britain has unveiled a £330 billion package of emergency loan guarantees to business and £20 billion in fiscal support.

Tory chancellor (treasurer) Rishi Sunak, said: “This is not a time for ideology or orthodoxy, this is a time to be bold ... I’ll do whatever it takes”. Pedro Sanchez, Spanish prime minister, triggered what he called “the biggest mobilisation of resources in Spain’s’ democratic history”, including €100 billion in state loan guarantees. French finance minister Bruno Le Maire, who has put up €300 billion in state loans to business, told the press: “I will not hesitate [to use] all the means available to me”.

The European Central Bank, which estimates that the crisis might result in the euro area economy shrinking by more than 4 percent this year, is set to inject more than €1 trillion into the European banks in the next nine months. “Extraordinary times require extraordinary action”, says ECB president Christine Lagarde.

In Australia, the Coalition government which has made “balancing the budget” a central feature of its platform, is now spending $18 billion, three-quarters of which will go to business. It is now lining up a new wave of spending commitments for business, both of a general nature, valued at more billions, and also to specific sectors like tourism, sports, arts and entertainment and the airlines which will total more than $1 billion.

The Australian Chamber of Commerce and Industry is urging the federal government to provide wage subsidies to workers, equivalent in value to Newstart to all businesses experiencing a sharp downturn. It is also asking the government to provide concessional loans of up to half a million dollars, with 80 percent of the debt guaranteed by government, as well as wage subsidies to cover sick leave entitlements. Nothing but corporate welfare of a kind that they have long decried when applied to workers themselves.

In the short term, working class households will get some benefits from this cash splash. In Australia welfare beneficiaries will be getting $750 in their bank accounts. In the United States it is likely that Americans will receiving close to $1,000. But this is just short term relief to get the economy moving. The long term benefits will go to the capitalist class in the form of tax cuts and other financial concessions.

The current crisis demonstrates not only that all the ideological nonsense about the virtues of the free market is quickly thrown overboard when capitalist interests are threatened, but also that the idea that governments are essentially powerless in the face of the markets is rubbish.

Governments are not helpless victims who cannot do anything in the face of “economic reality”. In the normal course of events, when we demand things like better welfare, health care or education, governments tell us that it isn’t possible.

Workers every day face their own personal crises – lack of money to pay the rent or the possibility of defaulting on their mortgage because the boss didn’t call them in for work this week, overdue utility bills that must be paid or risk being cut off, expenses for children’s education that fall due, the fear of redundancy. These are crises that are experienced personally but are really a collective crisis of everyday life for working class people. But when we ask for governments to respond, we are told that addressing these things collectively is not possible, and that this is just the way things are.

But when the capitalist system goes into crisis, governments act promptly. It turns out that political decisions about the economy are possible and it is wholly possible for governments to tell the markets to go jump. The president of the eurozone financial ministers committee summed up the prevailing attitude today: “Rest assured that we will defend the euro with everything we have got”. European finance ministers are looking at deploying a firefighting fund set up during the last eurozone crisis, with €410 billion of capacity. In the case of Spain, the Financial Times reports that an inner circle of government has assumed “command economy powers”. The Spanish government will take responsibility for guaranteeing medical, food and energy supplies.

Most of the time we’re told that “the economy” can’t afford a decent standard of living for workers – higher minimum wages, liveable Newstart allowances, a massively expanded public housing program to get people out of the private rental market, free university education. Budgets have to balance. Businesses have to be competitive. Taxes have to be kept low.

And now, all of a sudden, we’re finding that the economy can, apparently, afford things that we have long demanded. Governments around the world are now laying out money on things that just weeks ago they would have attacked as unaffordable.

The Morrison government has been attacked even by the Business Council for not lifting the Newstart allowance. And now it’s spending $4.7 billion on a one-off $750 payment to millions on welfare. State governments too are ramping up health spending. In Western Australia, the government is freezing utility bills and public transport charges, doubling energy assistance payments and making sick and carers’ leave more available for public sector workers who either have the virus themselves or who need to care for others.

The Hong Kong government has handed out $1,000 payments to citizens. The Italian government, faced with one of the worst outbreaks of COVID-19, is suspending mortgage payments. In New Zealand, the government has raised all welfare benefits, permanently, by NZ$25 a week and doubled winter energy payments to beneficiaries and age pensioners. In France also, benefits are being hiked and made more widely available.

It’s not that governments have suddenly discovered a big pot of gold in the basement of the central banks. They say that they are taking these measures to both protect public health and to save the economy. But it’s obvious which takes priority. The new measures constitute the largest bailout bonanza in world history, carried out through state-administered transfers of public wealth and current and future debt to billionaires and big business: socialisation of losses, privatisation of profits. The outcome will be to further transfer, consolidate and concentrate wealth, just as has occurred since the GFC. While there is discussion about small handouts, nothing serious is being proposed to halt the mass layoffs now gathering steam.

In pretty much every spending package, subsidies to business, government loans and tax concessions account for two-thirds or more of the funds outlaid. Things that directly benefit workers – the big majority of the population – account for only one-third of the money. Just think of Australia: $13 billion to business, $4.7 billion to those on welfare.

When you think of the humiliating restrictions imposed on Centrelink clients, business is being showered with money with no strings attached. In Australia, the federal government is offering subsidies to bosses to keep apprentices and trainees. But all that does is encourage bosses to sack the trainee at the end of the six months and take on another one, with another government subsidy. No real jobs created, just a steady flow of money flowing into the bosses’ pockets.

But it’s not just a question of the money being disbursed. Other sacred cows are being slaughtered. The sanctity of private property, for example. The Spanish government has announced that it is requisitioning private hospitals and healthcare providers for the duration and developing plans to house and feed the homeless.

President Trump announced a series of extraordinary measures on 18 March, seizing on the powers vested in him by the Defence Production Act to steer production by private companies to overcome the shortage of masks, ventilators and other health supplies. Playing catchup on testing for COVID-19, Trump is deploying two Navy hospital ships to New York City and the West Coast. Astonishingly for the United States, whose president made his fortune in real estate, the Housing and Urban Development department will suspend foreclosures and evictions until at least the end of April. The federal government is also requiring employers to provide sick leave to workers infected with the virus. In California, the governor has announced plans to buy hotels to house some of the state’s 150,000 homeless people.

In Austria, healthcare workers with children are provided access to free childcare to allow them to continue working. In South Korea, the government is offering emergency child care to parents still at work, with class sizes limited to ten and supervised by trained teachers. In Australia, according to the Guardian, discussions are underway to underwrite home mortgages and even employment guarantees.

It turns out that these things, too, can be done.

So, in an economic emergency, few of the usual rules apply. Governments can marshal the resources and can threaten the narrow interests of private businesses. Hardcore libertarians despise these measures as rampant socialism. From their perspective, they’re right: the very existence of such programs is condemnation of the free market capitalist model that they promote. But they are best seen only as another approach to the management of the capitalist economy.

The fact that governments across the OECD are now prepared to spend trillions of dollar to save the financial system from collapse only confirms that the world economy cannot be left safely in the hands of “the market”. And, the situation clearly confirms that when the capitalist class and governments deem it necessary to save their system, lots of measures they once denounced as “unaffordable”, not permitted by the condition of “the economy”, are actually affordable and permitted. Governments can act when required. The ideological justifications of yesterday are revealed as threadbare. But nor are government interventions of this nature geared towards the interests of the working class, only the interests of the bosses.