Utsa Quotes

Democracy requires that alternative visions of society be placed before the people, from which they can choose. But if all political parties have the same policies, namely those approved by capital, then the choice of the people becomes meaningless.

Protectionism, such as what U.S. president Donald Trump was attempting, amounts in effect under these circumstances (that is, in the absence of any significant expansion of state expenditure financed either by a fiscal deficit or by taxes on capitalists) to an export of unemployment to other countries. It can work only if the other countries do not retaliate. If they do, then it gives rise to a competitive “beggar-thy-neighbor” policy that only worsens the crisis by creating further uncertainties and reducing investments further.

Imperialism is a relationship between capitalism and its setting, central to which is an imposition of a regime upon the setting that entails income deflation as a means of preventing the threat of increasing supply price. No matter what happens to the bourgeoisies of the South or the workers of the North, this relationship, which existed in the colonial era, persists to this day and the system cannot do without it.

Despite all technical change in the advanced countries, to this day India, with a much smaller cultivated area than the US, produces annually a larger total tonnage of cereals, root crops, oil crops, sugar crops, fruits and vegetables. The precise figures are 858 million tonnes in India and 676 million tonnes in the US in 2007, the latest year for which the data from the United Nations Food and Agriculture Organisation is available. As for China, its even more intensive cultivation, developed over centuries, and consequent high land productivity were legendary; Britain’s agricultural yields at that time, properly measured over the same production period, were pathetic in comparison. By 2007 China produced 1,308 million tonnes from an area substantially less than that of India and of the US.

Yet history tells us that a deep financial and economic crisis has never occurred without a prior agrarian crisis, which tends to last even after the financial crisis abates. Consider the great depression of the inter-war period: it started not in 1929 as the conventional dating would have it, but years earlier from 1924–25 when global primary product prices started steadily falling. The reasons for this, in turn, were tied up with the dislocation of production in the belligerent countries during the war of inter-imperialist rivalry, the First World War of 1914–18. With the sharp decline in agricultural output in war-torn Europe there was expansion in agricultural output elsewhere which, with European recovery after the war, meant over-production relative to the lagging growth of mass incomes and of demand in the countries concerned. The downward pressure on global agricultural prices was so severe and prolonged that it led to the trade balances of major producing countries going into the red.