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Australia’s economic crutch breaking?
Contrary to the bullshit our politicians and wanker economists are telling us, most of the Australian economy has been experiencing negative growth. The thing that has been giving us the impression that we’re booming is the fact that mining industry is booming and compensating for the rest of the economy. This on the back of much needed resources in the booming Chinese economy.
But as state in a previous post, our economy is not immune from America’s economic crisis because we’re tied to China and China is tied to America. This is the grim reality of world capitalism. And it seems economists are now willing to admit that given some recent drops in the prices of commodities, we could be looking at a collapse of the only thing keeping our economy strong.
Now I am not making grave apocalyptic predictions as some Marxist economists have fallen into the trap of doing but there is striking parallel in this period of impeding recession and our mining boom. Australia pre-depression was a booming economy on the back of natural resources such as mining and yet when the depression hit, we lost all of our markets and was left one of the hardest hit by the depression.
This also highlights that these kinds of crises are embedded in the system of capitalism. Even one economist admitted in the article that “This downswing is more consistent with the global economic fundamentals.” Essentially, economists have now admitted that crises happen, but are now saying that it’s part of the system so deal with it. Well, the high-flying CEOs are still living in luxury whilst we “deal with it” so we’ll need a fight back, especially in the unions, to stem the tide of attacks that are making us pay for their system’s problems.
Technorati Tags: economy, recession, depression, mining, Australia, capitalism
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Good to see you back behind the keyboard – I thought you’d taken another hiatus.
It is more or less the same here regards recession. Some commentators have started to talk about it but you will not find a politician who dares utter the dreaded ‘r’ word. Instead, they euphemistically prefer ‘economic slowdown’. But however they try to sugar it,they expect the working class to swallow the bitter pill.
I’ve also added you to my blogroll. Hope you enjoyed the carnival!
I thought I’d taken another hiatus too
Was running out of things to blog, but the news always seems to throw up something new.
Yeah, it’s funny watching the politicians try to sugarcoat the whole situation to make it not seem as bad as it is, but we’re also seeing them finally just use it as an excuse to attack. You know the whole logic if the working class don’t take a hit, we’re all gonna be screwed.
We have a man on $250,000 a year telling the workers on an average of $40,000 to not be so damned greedy and ask for $45,0000.
Still need to get through all the post but enjoyed it. Will return the favour and add you to my RSS reader too.