(The following article is from the May 1-15, 2009, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St., Unit 502, Hamilton, ON, L8P 2H3.)

People's Voice Editorial

The gap between economic reality and the cheery one-liners of right-wing politicians keeps getting wider. During the Dirty Thirties, prosperity was alawys "just around the corner." That decade did see the occasional brief upturn in economic activity, but it took a world war and more than 50 million deaths for the private profit system to climb out of its worst crisis.

     Over a year ago, "Dr. Doom," aka NYU Business School Professor Nouriel Roubini, predicted an 18 month recession followed by a classic "U‑shaped" recovery. Now, Roubini warns that the recession may last 36 months, with a "more virulent L‑shaped near-depression." His outlook received a gruesome confirmation with the suicide of David Kellermann, chief financial officer of U.S. mortgage giant Freddie Mac, which has lost some $50 billion during the financial crash.

     The latest International Monetary Fund report admits that "the global economy is in a severe recession inflicted by a massive financial crisis and an acute loss of confidence." The IMF projects a 1.3 per cent contraction of the global economy this year and a 1.9 per cent expansion next year, "the deepest post-World War II recession by far." More significantly, the IMF's estimate is far worse than its January forecast for 0.5 per cent growth in 2009.

     For working people, the message is clear. Don't believe right-wing politicians selling snake oil. This depression will not magically disappear with wage cuts and contract shredding, remedies which will only shrink buying power and expand corporate profits. The economy needs fundamental change, along the lines of "people's needs, not corporate greed." And we need mass, united, militant political action to win this change.