I am writing this with the understanding that Salon magazine
http://www.salon.com/2014/04/19/reaganomics_killed_americas_middle_class_partner/?utm_source=facebook&utm_medium=socialflow
is not Socialist, but rather a liberal magazine with some progressive views
about the state of the economy. Their intent on writing this article is
probably aimed at 2 audiences. Those in the ruling class, as a warning of
things to come if they don’t change course, and those of us in the working
class, by trying to directs us down the road of reform, without going any further.
Yes Salon is correct in pointing out in this article how capitalism really
works, but it appears that they still want to keep the capitalist class in charge by calling
for a massive upheaval that could take some time to build, but that produces
nothing more than reforms, which can easily be undone as they have been and are
being done right before our eyes.
All it takes
for reforms to start unraveling is a crisis in the capitalist system. And this
system with it's many contradictions always produces cycles of crisis.
There was a stagnation of profits for the capitalist class
that began in the 60s’ and led to the crisis in the 70s’ and that’s when the
capitalist class first began its frontal attacks on working people.
It appears that the drive to deregulate the banks began in
the 1960s as stated in Wikipedia
“Starting in the early 1960s
federal banking regulators interpreted provisions of the Glass–Steagall Act to
permit commercial banks and especially commercial bank affiliates to engage in
an expanding list and volume of securities activities.[5] By the time the affiliation restrictions in the
Glass–Steagall Act were repealed through the GLBA, many commentators argued
Glass–Steagall was already “dead.”[6] Most
notably, Citibank’s
1998 affiliation with Salomon Smith
Barney, one of the largest US securities firms, was permitted under
the Federal Reserve
Board’s then existing interpretation of the Glass–Steagall Act.[7] President Bill Clinton publicly
declared "the Glass–Steagall law is no longer appropriate."[8]”
More attacks on
regulation took place under Carter and laid the groundwork for Reagan and what
came to be termed Reaganomics. Carter also began the deregulation of price controls
on oil but in half measures, which Reagan then once in office took away all control on oil prices.
Carter also deregulated airlines, railroads and trucking. The Carter
Administration also gave greater power to the Federal Reserve System through
the Depository Institutions and Monetary Control Act (DIDMCA) of 1980 which
otherwise was a necessary first step in ending the New Deal
restrictions placed upon financial institutions. Carter also started cutting social programs to
reduce the so-called deficit.
All this kept continuing through out the
administrations of Reagan, Bush
Sr., Clinton, Bush Jr. and now Obama. As more crisis kept recurring (which
are termed recessions by the
capitalists) the capitalist class was finding ways to deal with these crisis's,
by attacks on policies that would begin making life for working people worse with
each new crisis. When Clinton took office he signed NAFTA, and eliminated
Glass-Steagall, which by the capitalists class was already declared dead,
because the financial sector was finding ways to undermine this legislation.
Capitalists will always find a way around anything that
prevents them from increasing their profits. That is the nature of the
capitalist system to seek more profits by any means necessary.
At the same time
that there have been massive attacks against public education, some capitalists have
already been talking about repealing the child labor laws. That means they want
to once again exploit the children of the working class, instead of educating them.
I applaud SALON magazine for pointing out the real nature
of capitalism, but they fail to offer any real solutions because they are
liberals who still have delusions about capitalism, and believe that it can be
tamed or controlled. And I say we already have seen that film before and know what
the outcome will be.
The only real solution to the problems of capitalism is in
the complete transformation of society that places the means of production and
the economy under the democratic control of the working class. And that is what
is called Socialism.
http://www.marxists.org/archive/luxemburg/1900/reform-revolution/index.htm
Yes reforms for now, but then onward to democratic socialism.
