May 1, 2009
Danny Boyle's Slumdog Millionaire (based on Indian diplomat Vikas Swaroop's novel Q & A) takes the extremely potent idea of a Bombay slum boy tapping into his street knowledge to win a twenty-million-dollar reality quiz show, and turns it into a universal tale of love and human destiny. In the quiz, Jamal is unable to answer questions that test his nationalist knowledge but is surprisingly comfortable with those that mark his familiarity with international trivia. For instance, while he knows that Benjamin Franklin adorns the hundred dollar bill, he has no clue about who adorns the thousand rupee note. This is obviously meant to suggest the irrelevance of the nation to its most marginalized member, but less obviously, also indicates its redundancy under globalized neoliberalism.
April 1, 2009
It is now universally recognized that the U.S. economy is experiencing a deep downturn unlike anything seen since the 1930s. Hence, the question continually arises: How close is this to a depression? One way of answering is to look at the unemployment rate. The Great Depression hit bottom in 1933 when unemployment peaked at 25 percent. Today the United States is losing jobs at the rate of 600,000 a month. But the official unemployment rate currently stands at 8.1 percent (seasonally adjusted, February 2009). This is the highest rate of official unemployment in a quarter-century, but hardly what is considered a depression-level rate, which is usually thought of as well into the double-digits.
April 1, 2009
As the first tremors of the looming financial crisis ripped through Wall Street, with the meltdown of the subprime mortgage market in the summer of 2007, the dollar plunged sharply. Perversely however, even as some financial pundits were foretelling its collapse, the deepening of the crisis following the bankruptcy of Lehman Brothers in September 2008 actually saw the dollar gain ground sharply (for the first time since the steady decline that began in 2002.
April 1, 2009
It seems that nearly everyone publicly supports the reunification of Korea — the governments of the United States, North Korea, and South Korea, as well as the great majority of people in both North and South Korea. This should make us all nervous because it means that different people mean different things when they talk about reunification. We need to think carefully about what we mean when we offer our own support for reunification or, said differently, we need to stop thinking about reunification as unambiguously good and start thinking about it as a contested process. The obvious point is that a sound reunification process will greatly increase the likelihood of a desirable reunification outcome. One of our tasks then is to support Korean efforts to advance a reunification process that will be truly responsive to the needs of the Korean people.
March 1, 2009
As we write these notes in late January 2009 the economic depression is worsening with each passing day, creating previously unthinkable conditions. Even as production sinks and unemployment soars in the "real economy," the implosion of the financial sector remains at the center of the crisis. It is now widely acknowledged in financial and policy circles that nationalization of the U.S. banking system, under one or another description, is inevitable. The Obama administration still resists what is referred to as a "complete nationalization," with the government wiping out the bank shareholders and taking over the running of the banks. But every other option on the table involves further steps in this direction. Already the U.S. Treasury has received shares and other securities from 314 financial institutions in return for $350 billion in government bailout money.
March 1, 2009
In referring in my title here to "A Failed System" I do not of course mean that capitalism as a system is in any sense at an end. Rather I mean by "failed system" a global economic and social order that increasingly exhibits a fatal contradiction between reality and reason—to the point, in our time, where it threatens not only human welfare but also the continuation of most sentient forms of life on the planet. Three critical contradictions make up the contemporary world crisis emanating from capitalist development: (1) the current Great Financial Crisis and stagnation/depression; (2) the growing threat of planetary ecological collapse; and (3) the emergence of global imperial instability associated with shifting world hegemony and the struggle for resources. Such structural weaknesses of the system, as Joseph Schumpeter might have said, are the product of capitalism's past successes, but they raise catastrophic problems and failures in the present nonetheless. How we choose to act today in response to this failed system is therefore the most critical question that humanity has ever faced.
March 1, 2009
In the opening decade of the twentieth century the German national state united the great majority of the German speaking population of Europe, excluding only those in Switzerland and the Austro-Hungarian Empire, and was among the leading states of the world. It boasted technologically advanced industry, among the highest per capita GDP, and the second largest army and third largest navy in the world. Germany was at peace, save for minor military operations against disobedient natives in Southwest Africa. It was a state that was among world leaders in providing basic social insurance, yet held sacred private property and the rule of law, except only in strictly prescribed areas of national security. In the opening decade of the twenty-first century the German national state unites the great majority of the German speaking population of Europe, excepting only those in Switzerland and Austria, its industry is technologically advanced and its per capita GDP high. Its military budget is the sixth largest in the world, and it is at peace, save for minor military operations against disobedient natives in Afghanistan. Despite cutbacks, few states in the world have better provision of basic social insurance, and Germany today prides itself on holding private property to be sacred and on its adherence to the rule of law, except for a few strictly prescribed areas of national security. In the fourth and fifth decades of the twentieth century the German national state committed crimes universally agreed to be the most horrendous in human history.
February 1, 2009
In 1987, in the introduction to their Stagnation and Financial Explosion, Monthly Review editors Harry Magdoff and Paul Sweezy wrote: "We both reached adulthood during the 1930s, and it was then that we received our initiation into the realities of capitalist economics and politics. For us economic stagnation in its most agonizing and pervasive form, including its far-reaching ramifications in every aspect of social life, was an overwhelming personal experience. We know what it is and what it can mean; we do not need elaborate definitions or explanations. But we have gradually learned, not altogether to our surprise of course, that younger people who grew up in the 1940s or later not only do not share but also do not understand these perceptions. The economic environment of the war and postwar periods that played such an important part in shaping their experiences was very different. For them stagnation tends to be a rather vague term, equivalent perhaps to a longer-than-usual recession but with no implication of possible grave political and international repercussions. Under these circumstances, they find it hard to relate to what they are likely to regard as our obsession with the problem of stagnation. They are not quite sure what we are talking about or what all the fuss is over.
February 1, 2009
Imagine. A liberation army that supports a generalized revolt of the peasantry reaches the gates of the capital, where the people, in their turn, rise up, drive the royal government from power and welcome as their liberator the Communist Party of Nepal-Maoist (CPN-M), whose effective revolutionary strategy needs no further demonstration. What is involved here is the most radical victorious revolutionary advance of our epoch, and, for this reason, the most promising.
January 1, 2009
This year marks the eightieth anniversary of the 1929 Stock Market Crash and the beginning of the Great Depression, the worst economic crisis in the history of capitalism. However, while the Great Depression has been very much in the news of late, this is not due so much to this anniversary as to the fact that for the first time since the 1930s an economic crisis has arisen on a scale and of a nature that invites direct comparison with that earlier deep downturn, which threatened the entire system and ended in the Second World War.
