64. World economic crisis: a Marxist analysis of the coronavirus crunch

The capitalist economic system is dysfunctional and obsolete.

In the US, 10 million workers filed unemployment claims in the last two weeks of March. In the UK, a million workers filed Universal Credit benefit claims in the last two weeks of March.

Just over a decade after the ‘credit crunch’ and Great Recession, the Covid-19 pandemic is causing a ‘corona crunch’ and could pitch the world into a second Great Depression.

But the world economy was heading for a serious downturn even before the virus. In fact, capitalism itself has been growing increasingly weak, unstable and dysfunctional over a long period. Why?

Marxism points out the capitalist system is riddled with contradictions, and today has long outlived its historic usefulness. So what are the main economic features of the current nosedive, and what sort of problems - and solutions - could the Marxist toolbox point us to?

This episode of Socialism takes a short look at the world economic crisis: a Marxist analysis of the coronavirus crunch. Plus: we respond to the Labour Party leadership election results.

Further reading

The new crisis and its consequences: http://socialismtoday.org/editorial-the-new-crisis-and-its-consequences

Brexit and British capitalism - why Johnson's juggernaut is set to jackknife: https://www.socialistparty.org.uk/articles/30184/29-01-2020/brexit-and-british-capitalism-why-johnsons-juggernaut-is-set-to-jackknife

10 years since the financial crash - the socialist answer to capitalist crisis: https://www.socialistparty.org.uk/articles/27918/12-09-2018/10-years-since-the-financial-crash-the-socialist-answer-to-capitalist-crisis

Universal basic income - what do socialists say? https://www.socialistparty.org.uk/articles/24401/08-02-2017/universal-basic-income-what-do-socialists-say

Understanding Marxist economics: http://www.marxism.org.uk/pack/economics.html

How a socialist economy would work: https://www.socialistparty.org.uk/articles/6012/16-10-2004/how-a-socialist-economy-would-work