Marxist Economic Analysis

Introduction: The United States is the leading capitalist country in the world, and as such the class struggle and economic developments that take place here are of utmost importance. While the U.S. is the leading capitalist country, it faces intense competition with the European Union, Japan and others – fueling an ever more fierce attack on the wages, unions and living standards of working people.

We’ve set up this page to provide readers with a sample of our economic analysis, along with some essays on Marxist economics in general. We invite your feedback on the materials posted on this page.

Economic News & Views:

Workers’ Action Program to Confront the Crisis: The liberals propose to tweak the Wall Street Bailout on behalf of the amorphous “taxpayers” living on a mythical “Main Street.” Revolutionary socialists, in contrast, start from the needs of flesh-and-blood workers, and rely on their class power to challenge ruling class attacks. continued

Do ‘Buy American’ Schemes Save U.S. Jobs? Does "Buy American" mean "Buy Union," as many of the labor tops say? It should be obvious at the outset that the two slogans are quite contradictory, particularly in a country where a mere 7 percent of the private sector is unionized. continued

Obama & Auto Bosses Slam Chrysler, GM Workers: After the White House rejected a financial rescue plan by General Motors and Chrysler as not drastic enough, President Barack Obama put it bluntly to the automakers. To receive an additional $17.4 billion in federal bailout funds that they requested, Obama said on March 29, U.S. automakers must become "much more lean, mean and competitive." That only meant one thing—break the back of the United Auto Workers (UAW), one of the most powerful unions in the U.S. labor movement. continued

Is the Economic Crisis Winding Down? In the first three months of this year many bourgeois politicians and pundits declared that the corner had been turned on the economic crisis, basing their claims on a handful of mildly positive economic indicators. But numerous economists, even mainstream ones, quickly punctured these illusions. continued

Fund Workers’ Needs, Not Banks & Billionaires: As part of his plan announced March 30 to "save" GM and Chrysler, President Barack Obama demanded that autoworkers give back even more of the wages and benefits they had won from the corporations in years past. continued

Nationalize the Banks Under Worker’s Control: Simultaneous with the announcement of his 10-year budget plan, Obama rolled out new bank bailouts. Obama announced on Feb. 26 that he was considering giving $750 billion or more to banks. And he said that $250 billion more would be held in reserve, based on a conservative estimate of what the government could lose I the course of spending that $750 billion on assets that might never regain their value. continued

The Ongoing Economic Crisis: Just as even the most bullish economists were admitting the US is already in a recession, and indications were mounting that it will be a long-lasting one that could become a full-blown depression, the first domino in what could be a series of failing financial institutions toppled. continued

The Iraq War & the Economy: The New York Times report on 5th-anniversary antiwar protests claimed that "while the banners and bullhorn rhetoric were strident, the mood among some was pessimistic. 'The war is not going to end,’ said Bob McGee. 'It doesn't matter who wins the election. The only thing that's going to stop it is the destruction of the economy.'" continued

What’s Behind the Economic Crisis? As we go to press, Bush and Congress appear headed toward agreement on a “stimulus package” of $146 billion centered on tax cuts of a few hundred dollars per individual. This measly amount is supposed to revive the economy and reassure the world’s stock markets. All presidential candidates left standing have endorsed the package. continued

Economy in Doldrums as Credit Crisis Deepens: At the beginning of this year, leading U.S. officials and Wall Street "experts" insisted that the subprime mortgage crisis - then in its beginning stages - was limited to a few, albeit major, subprime lenders. It was well contained, they argued. In the context of the overall health of the economy in all other sectors, the pundits of capitalist stability insisted that there was little or nothing to worry about. continued

U.S.Economy Weakens as Housing Bubble Pops: The popping of the housing bubble is spreading havoc throughout the economy and poses the risk of a severe recession. Starting with the subprime mortgage market, the credit crunch resulting from rising defaults soon spread to the market for even the most expensive homes bought by those with the best credit. continued

Bush’s Health Care Plan Pushes Costs Onto Workers: In his State of the Union speech on Jan. 23, George Bush proposed a plan to gut the country's employment-based health insurance system. In an attempt to force workers to buy their own cheaper and less comprehensive coverage, it would provide tax breaks up to $7500 for individuals and $15,000 for families. And workers with employer-provided insurance would have to pay taxes on any coverage over $15,000. continued

Gulf CoastDisaster: The Result of Capitalist Greed: The devastation and human suffering wrought by Katrina is not just a so-called natural disaster. It is above all else a crime perpetrated against the people of this country. Everything evil and barbaric in capitalism is being exposed as this crisis unfolds, from the long-term environmental degradation and disrepair that has been accumulating for decades to the immediate failure to mobilize the full power of the federal government to meet human needs. continued

Oil Uber Alles: If you understand the importance of oil to modern capitalism, you will understand a great deal indeed. Oil prices briefly hit $57 a barrel in early April, continuing an 18-month rise. Remember that in December 2003 oil prices were around $29 a barrel and expected by the know-it-all Wall Street analysts to stay at about that price in the coming year. Instead, prices have risen steadily while at the same time fluctuating considerably due to supply disruption and a fluctuating albeit high demand. continued

The Decline of the Dollar: The dollar has continued to decline against the euro and most other major world currencies. On Dec. 23, one euro sold for US$1.35, a drop of 7 percent since the Nov. 2 election and a drop of almost 35 percent over the past two years. continued

Archived Articles:

U.S. Economy:

The Ongoing Economic Crisis

The Iraq War & the Economy

U.S. Economy in Doldrums as Credit Crisis Deepens

U.S. Economy Weakens as Housing Bubble Pops

Bush's 'Free-Market' Health Care Plan Pushes Costs Onto Workers

Theft at the Pump

Down With King Coal!

Oil Uber Alles

Down on the 'Socially Responsible' Farm

Lockheed, King of Warfare