As this special issue on the economy goes to the printer, the business press is full of the news that a mild recovery from the recession that began in March 2001 may already be in the works, as was suggested by Federal Reserve Chairman Alan Greenspan in testimony to Congress in late February. Whether this should prove to be the case or not, it remains true that the long-term, deepening problems of the U.S. economy are for the most part ignored in such accounts, in favor of a short-run focus on an expected cyclical upswing.
Volume 53, Issue 11 (April)
For a long time now, the U.S. economy and the economies of the advanced capitalist world as a whole have been experiencing a slowdown in economic growth relative to the quarter-century following the Second World War. It is true that there have been cyclical upswings and long expansions that have been touted as full-fledged economic booms in this period, but the slowdown in the rate of growth of the economy has continued over the decades. Grasping this fact is crucial if one is to understand the continual economic restructuring over the last three decades, the rapidly worsening conditions in much of the underdeveloped world to which the crisis has been exported, and the larger significance of the present cyclical downturn of world capitalism
Historically, monetary crises have been related to hyperinflation, from which Argentina has often suffered. Hyperinflation is generally viewed as a calamity leading to the destruction of the capitalist monetary system of circulation. In the present Argentine crisis, however, there has been a complete implosion of economic and monetary relations due to hyperdeflation. This is the strangulation of the economy by the requirement to pay an unsustainable debt
Against the background of Argentina’s dramatic economic downfall, a meeting was held in January 2002 at the Faculty of Economic Sciences of the University of Buenos Aires. The focus of the meeting was the need to work on alternative proposals to deal with the crisis
In large part, the increased mass media coverage and the more favorable reporting (except in the United States) were due to the presence of political notables embracing centrist positions (leading members of the French Socialist Party, representatives from the United Nations and World Bank, and leaders from the moderate/social democratic sector of the Brazilian Workers Party, etc.). The political advances and achievements of SF2002 noted in the Western European media were accompanied by a particular bias in the reporting. Most of the journalists and editors favorably quoted and featured the serious ideas of the more moderate notables and political leaders meeting at the Catholic University. Rarely were mass leaders and activists from popular movements quoted or shown in photographs. For example, the Financial Times (February 5, 2002, p. 8) caricatured the differences between radicals and reformists: Behind the theatrical expressions of protest, the forum was marked by a serious exchange of ideas and proposals, such as reforms of the WTO’s intellectual property rights agreements. Most participants said they were not against globalization but for an equitable form of it with a broader international participation in decision-making