From the amount of fuss being made about it, some people might conclude that the Labor government’s Resource Super Profits Tax proposes important changes in the tax system. Such a conclusion would, however, be a mistake. The RSPT has more to do with the approaching federal election than it does with taxation.

In the midst of the highest inflation in seven years, on May 7 Venezuela’s revolutionary working people’s government escalated a campaign against price and currency speculators. President Hugo Chavez declared that his government would create an “export-import corporation to take over middle-class management of the people’s resources”.

San Francisco – The “Tea Party” has had a big play in the capitalist media recently, as rallies were held across the country leading up to April 15, the day when income taxes are due. The rallies were organised by a section of the Republican Party establishment, and featured Sarah Palin, the former candidate for vice president.

On April 13, Venezuelan President Hugo Chavez stood before hundreds of thousands of supporters on Bolivar Avenue in Caracas and declared that this date would be commemorated each year as the “Day of the Bolivarian National Militia, the People in Arms and the April Revolution”.

San Francisco – During the 1980-82 recession, US car corporations were closing factories, reflecting growing international competition and overproduction. One of the plants closed was a large General Motors facility in the city of Fremont, California, part of the San Francisco Bay Area. This factory was reopened in 1984, in a deal between Toyota and GM.

When running for the US presidency in 2008, Barack Obama promised “change you can believe in”. As president, he has failed to live up to the hopes and expectations of his supporters for progressive change.

The defining feature of Australian politics today is the ongoing retreat of the organised working class. In the face of the serious economic crisis, there is no mass expression of a working-class alternative.

“How much longer are we going to allow transnational companies to come here to speculate with our prices?” asked Venezuelan President Hugo Chavez on January 17, announcing the expropriation of the large Exitos department store chain–three-quarters owned by the French company Casino Guichard Perrachon, with a minority share owned by the Colombian company Exito SA – on his weekly TV

Capitalism: A Love Story
Written & directed by Michael Moore
Runtime: 127 minutes
In cinemas now

Deer Hunting With Jesus: Dispatches From America’s Class War
By Joe Bageant
Scribe Publications (2009), 288 pages (pb), $24.95

Among the heads of government gathered at the September 25 G20 summit held in Pittsburgh, Australian PM Kevin Rudd didn’t particularly stand out much in the hoopla surrounding US President Barack Obama’s self-congratulatory speech claiming that action by his and the other governments of the world’s 20 largest national economies had “brought the global economy back from the brink” o

The big US banks that had to be saved with government money a year ago after they gambled too freely with “mortgage-backed securities” have learned their lesson. The lesson is that they can gamble as wildly as they like, keep the profits if they win and count on government paying for them if they lose.

San Francisco – The stock market has rebounded from its March lows, back up to where it was in January. Goldman Sachs reports big profits, as do a few other big banks. “Leading indicators” are up. The danger of a financial collapse appears to be behind us. Some pundits are predicting the end of the recession in the next few months, or early next year.

Only a few years ago, the economic “experts” quoted in the commercial media were assuring us that major recessions were a thing of the past. The economists had figured out how to manage the economy, and as long as governments followed their advice, there would be nothing more serious than the occasional statistical blip. Then the real world intruded.

Under the impact of the global and domestic recession, Australia’s manufacturing sector is facing its worst downturn since the early 1990s. Manufacturing output contracted 4.8% in the last quarter of 2008. More than 50,600 jobs in the sector were lost during the last nine months of 2008.

San Fransciso – The huge bonuses – some US$210 million – that insurance giant American International Group (AIG) paid out to its executives from the end of last year through to March sparked a renewed explosion of anger among working people.

While US President Barack Obama is desperately trying to rescue the crisis-ridden capitalist system with multi-billion dollar bailouts for the financial corporations, tent cities of newly homeless people are springing up across the US as unemployment and housing foreclosures soar.

Prime Minister Kevin Rudd’s lengthy essay on “The Global Financial Crisis”, in the February issue of the Monthly, blames the international economic crisis on neoliberalism.

The announcement by the Melbourne-headquartered Pacific Brands clothing and footwear manufacturing company on February 25 that it would sack 1850 employees – one-fifth of its global workforce – over 18 months, including 1200 in clothing manufacturing, demonstrated the failure of the Rudd Labor government’s $10.4 billion pre-Christmas “jobs protection” economic stimulus package.

“Batten the hatches. This is not just a recession. This is the sharpest deceleration Australia’s economy has ever seen”, Australian economic forecaster Access Economics warned in its latest quarterly Business Outlook report, released on January 18.

San Fransisco – President Barack Obama has presented his plan to try to turn around the US economy in the context of a rapid and accelerating decline. Official figures for the fourth quarter of last year indicated that US gross domestic product contracted at a 3.8% annual rate.

“The severity of this economic contraction is a once-in-a-hundred-year phenomenon. It really does compare in severity to the Depression of the late 1920s and through the ’30s”, Donald Brean, a professor of finance and economics at the Rotman School of Management at the University of Toronto, told the November 11 London Financial Times.

In its earliest stages, capitalism necessarily began from what was provided by the feudal economy that preceded it. This was primarily an extremely low level of productivity, based mostly on very simple tools and producers (peasants and artisans) with few skills.

Since the September 15 failure of Wall Street-based Lehman Brothers, the fourth largest investment bank in the US, the world’s capitalist governments have been scrambling to keep the worst financial crisis since the Great Depression of the 1930s from turning into a total collapse of the global financial system.

Brussels – In 2007-2008, the standard of living of more than half of the world population dropped dramatically when the price of food soared. There were massive demonstrations in at least 15 countries in the first half of 2008.