The much heralded recovery in
the capitalist world seems to have
petered out.

None of the experts in the field
of political economy in the
capitalist world has been able to
advance proposals to get out of
the crisis or explain why their
proposals failed to stop these
developments which brought on
the worst crisis of the post war
years. Keynesism showed itself
to be bankrupt. -‘*Crisisless”’
capitalism proved to be a mirage.
The affluent society has turned
into a sick society.

What these economists chose
to ignore is the built-in defect of
capitalism whose aim is not the
satisfaction of the needs of the
people, as is the case of the crisis-
free socialist economy, but the
accumulation of capital by
increasing the exploitation of the
working people and the achieve-

ment of super profits by
monopoly and the multi-national
corporations.

The attempts to get out of the
crisis by the traditional capitalist
methods have proven inadequate.

BUILT-IN CRISIS

Attempts at stimulating pro-
duction leads to more inflation,
while measures to curb inflation
lead to a worsening economic
situation.

Added to this dilemma is the |

crisis of energy and raw materials
which, under multi-national
ownership, has further increased
prices and aggravated the
capitalist-wide crisis.

The currency crisis, expressed
in growing instability of the
monetary system, devaluation of
capitalist currencies, and a ba-
lance of payments deficit, have all
added fuel to the fire.

These factors reemphasize that
the present crisis is not a transient
feature of the capitalist world. It is
not only cyclical but is now built
into state-monopoly capitalism
with its resultant growing eco-
nomic and political instability.

It is within this context that
signs multiply of a new industrial
crisis. The efforts of the London

i
5

PACIFIC TRIBUNE—NOVEMBER 4, 1977—Page 6

Summit of the seven advanced
capitalist countries, including
Canada, to deal with the crisis,
have not proven successful. This
Summit meeting, like the two
previous ones, set itself the aim of
achieving sustained non-in-
flationary growth. This failed. In-
flation, which has tended to abate
somewhat, is now accelerating
again in advanced capitalist
countries.

NO IMPROVEMENT

Industrial production has either
remained stagnant or declined.
Unemployment has risen also and
affected the young generation
most severely. Under-capacity
production continues. Clearly as
long as capital investments con-
tinue to remain stagnant, there
will be no improvement in the
economy. This is illustrated by
signs of another downward turn in
the economies of the USA, West
Germany and Japan, the three
countries which were to have
sparked capitalist-wide recovery.

Thus, rather than achieving
stability, the policies pursued
aimed at restricting consumption,
at curtailing expenditures on so-
cial services and _ controlling
wages, the stepped-up arms drive

hee ‘ee ‘
, : Os ee

Trudeau’s so-called “anti-inflation program” has led to

Excerpts from the Central
Committee meeting,
Communist Party of
Canada, held October
14-16, in Toronto.

have led to increased economic
instability.
These developments expose
the bankruptcy of state-
monopoly economic policies and
of the inadequacies and limita-
tions of state regulation of the

“economy within the confines of

capitalist production relations.
The illusions of a ‘‘crisisless af-
fluent society’’ have given way to
the reality of a crisis more serious
than others in the history of
capitalism, precisely because it
merges with the energy, raw
materials and currency crisis,
each interacting on the other and
making a way out of capitalism’s
crisis more difficult.

‘ANTI-INFLATION’ PROGRAM

The bankruptcy of the policy of
sustained non-inflationary growth
is seen in Canada also.

This policy was the essence of
the so-called ‘‘anti-inflation pro-
gram’’ of the Trudeau govern-
ment expressed in its wage and

" price control package, and in its

various budgets.

The results speak for them-
selves.

The aim of this policy was to
check inflation by cutting down
on capital investment, by wage

}

b,
eo

ig

a stagnant economy and increased unemploy-

controls and cuts in social ser-
vices. Instead of wrestling in-
flation into the ground, it has lead
to a stagnant economy, increased
unemployment which may be-
come worse, lowered living stan-
dards, while inflation continues
upwards.

Indeed, devaluation of the
Canadian dollar is stimulating in-
flation and worsening living stan-
dards. Devaluation will add 1 or
2% to the inflation rate by making
imports more expensive, while
the increased price of food and of
energy will add to the inflationary
spiral.

Production slump and growing
unemployment, reflected in under
capacity production and a failure
of capital investment to get off the
ground — these are the consequ-
ences of the monopoly-inspired
economic and social policies pur-
sued by the government.

These policies have, according
to one economist, resulted in lost
production of $25.5-billion be-
tween 1974-76 while another eco-
nomist estimates lost production
as amounting to $69-billion in the
same period.

U.S. PENETRATION
What has further aggravated

R ;
E ‘
art Eat
y # é
: & %
v

ment. Eight hundred workers, unemployed, students and young people marched in Halifax on September

28 of this year to protest the disastrous unemployment situation in Nova Scotia.

|
|
|
}

|

the situation has been and cof
tinues to be U.S. control over Mt
sectors of the Canadian econo)
Due to its branch plant characté
decisions to close plants, cut bat
on production or trade with ott
countries, are made outside
Canada. This undermines Cal”
dian sovereignty and the ability?
the working class to fight a0
There has been a constant erosit?

of the manufacturing basé p
Canada due to an_ increasir
number of runaway plants with?’
resultant layoffs. q

The latest efforts by t

Trudeau government to su
_the crisis by devaluation of
Canadian dollar following up
similar actions by other capital!
governments including the us
will further deepen the crisis: |

Devaluation is aimed at 5™ ’
ping up exports. It is a form, “
trade war which, alongside .
tectionist measures, is being
for by the working people throu:
increased costs of imports. It?”
only. short term. value “ot
Canada’s trading partners in".
capitalist world are themselv@ ©
economic difficulties. |

Devaluation is stimulating
flation and thereby further
sening standards. Devaluatiom -
the dollar won’t solve the
problems facing the economy’

Neither will the position ® |
being advanced by some see
of monopoly which veer to
a policy of continentalism —% ,
Canada’s interests would bes!)
served by giving up the obje“_
of building secondary ind
and focusing instead on the $4
natural resources to the ou
world; in effect, that Canada

vert to a ‘“thewer of wood
drawer of water’’. Such a p0
or so-called industrial strategy),
resource. development req!
large investments of funds’
creates relatively few jobs. ~

Another position advan
the name of an industrial st!
for Canada is that of buildiné
Canadian multinational co!
tions through which to com
on more favorable terms with
multi-national corporations of
USA and other countries.

This would further tie the
ing class to the policies),
monopoly capitalism or of th
that multi-national corpo
This strategy would liké
weaken the manufacturing
and therefore the indepet!
of Canada.

Neither of these policies aft
the interests of the working”,
and of Canadian independé!
Both approaches would bring,
massive unemployment and ™,
ered living standards for the",
ing people and close the doo!’
bright future for the young &*
ation.

THE WAY FORWARD ©

The way forward to over,
stagnation and economic ci”;
to recast or restructure |
economy so as to reduce “
da’s economic dependence}.
U.S. economy. This cal) .
achieved through public OW).)
ship of natural resources an@") 4}
processing at their sou
Canada, by building secoM 4.
industry. by

This would create jobs * jy
future for a growing labor fol) .a
lies through an expansion OF © | i,
with the socialist countries 9).
restructuring of economic | ):.
tions with the newly liberated 1:84
developing countries on the ™ a,
of equality.

Taal Gee. Gack ome. peagepeaay Gage eee

sg git aa pot ek

ofp beat ee pare aes BA em

eo i
Sa aonanoa>