It's not Greece. It's Capitalism, stupid!
Lenin via opednews | 03.03.2012 22:41 | Analysis | Public sector cuts | Social Struggles
The Greek crisis provides the best evidence that the Capitalist model of governance has utterly failed and must be overthrown. By Nicolas Mottas
By Nicolas Mottas. March 3, 2012.
If Karl Marx could see the recent developments surrounding the Greek crisis he would certainly feel vindicated. Last Tuesday, the IMF and Eurogroup were trying for hours to reach a deal regarding Greece's new bailout package. In the name of avoiding default, the Greek people will now have to face a new round of extremely harsh austerity policies. But, in fact, it wasn't the country's bankruptcy which the leaders were trying to avoid; the real deal in Brussels was - and still is - to keep alive, at any cost, the politico-ideological corpse of the actually existing Capitalism.
For more than three years now, most international media and analysts refer to a "debt crisis" combined with financial mismagement by domestic governments. This is misleading. The actual truth is that the profoundly unfair and immoral capitalist system we live in - the one which supposedly "thriumphed" over marxist economics, as neoliberals and keynesians use to argue - is the source of it's own crisis. Who can argue that the ongoing crisis, which started with the Lehman brothers scandal in 2008, is the worst episode in a series of free market economy failures since the Great Depression of 1930s? In Europe, as well as internationally, the ruling elites are aware of that, thus making every possible effort to put the weight on people's back.
Today's Greece represents the epitomy of Capitalism's failure in Europe. The devastating results of this failure can be seen in the streets of Athens - in the increasing number of homeless people, in the agony of young men and women who cannot find a job even after two master's degrees, in the downgrade of citizens's living standards. The supporters of neoliberal practices and strick monetarism use to claim that Greece used to be "the last socialist european state". This is an outrageous lie. Greece, like her fellow EU members, was always a Capitalist state, functioning under the rules of free market economy. Between 1990 and 2007, a period during which Greece - governed by both conservative and social-democratic majorities - co-signed the notorious Treaties of Maastricht (1992) and Lisbon (2007).
Let's see some facts which are quite revealing about Capitalist dominance in Greece during the last two decades:
1. In 1990, the GDP of Greece was 38,000,000,000 euro. In 2007 it became 208,000,000,000 euro, thus being increased five times more.
2. In 1990, the profits of the companies (both S.A. corporations and L.L.C companies) were up to 575,000,000 euro. After 17 years, the profits of the Greece-based companies had been increased 28 times thus reaching the 16,000,000,000 euro.
3. While the profits of the private companies were reaching the above extroardinary numbers, the increase in the daily basic salary of the unskilled worker was just 15 euro.
For a period of almost 20 years, while the working people of Greece were contributing to the expanding of the country's GDP - and to the maximization of the profits of the Capitalist elites (28% in 17 years) - the lowest standard salary increased by just 1%. In fewer words, the period from 1990 to 2007 seems to be a period of continuous profitability for the Capitalists while, on the same time, the actual income of the labour classes remains the same as it was in the decade of 1980s. That seems to be part of the price the low and middle classes had to pay for Greece's ambitious aims in the 2000s: the Athens Olympic Games and the participation in the core of the E.U.'s neoliberal experiment - the eurozone.
However, there are still people who regard Greece's membership in the European Economic Community - known as the European Union since 1993 - as the modern "great achievement" of Greek politics. But who really benefited all these years from this membership? Was it the lower and middle classes of the country or specific financial elites in Athens and Brussels? Numbers are quite revealing: ( Rizospastis , May 12, 2009).
1. In 1980 (a year before Greece's accession in the EEC) the country's trade balance towards the rest of the world was 5,200,000,000 euro. Twenty-eight years later it had reached approximately 44,000,000,000 euro.
2. In the period from 1980 to 2008 the deficit of Greece's agricultural balance increased by 934%. Only during the first year of euro's introduction (2002-2003) the agricultural deficit of the country, related to the rest of the world, increased by 74%.
3. Greece's foreign lending: From 1990 to 2000 it increased by 931% (!). In 1980 the Greek public debt was 600,000,000 euro while 19 years later, in 2009, it reached the unprecedented number of 298,000,000,000 euro, thus being increased by 497 times.
4. During the last years there is a propaganda about Greece's benefits from the notorious "community packages" - structural funds that the Greek governments received from Brussels, since 1980s, within the frame of Europe's regional development policies. The total amount of community packages that Athens received in the period between 1981-2009 reaches 43,000,000,000 euro, which seems to be a considerable number. Nonetheless, it's very few related to the trade balance deficit between Greece and the EU. During that the last three decades Greece's imports were approximately 379,000,000,000 euro while the country's exports only 125,400,000,000 euro. (Greek Statistical Service, Bank of Greece & Rizospastis , 20.12.2005). In fewer words, Greece indirectly paid back six times more the money she received from Brussels. As German economist Heiner Flassbeck pointed out "Germany's surplus is the deficit of her partners".
There is no doubt that corruption consisted a major component in Greek politics' failure all these decades. But we should ask ourselves: Which is the system that promotes and advances corruption? Isn't the Capitalist system which "prepares the soil" for the interweaving of multinational corporations (see: 2008 Siemens scandal) with the political elites? Furthermore, there is a tragic irony: the present unelected Prime Ministers of Greece and Italy (Lucas Papademos and Mario Monti) are both former bankers, who worked in the past for multinational buldge bracket investment firms.
Today, a "troika" consisting of the Greek government, the IMF/EU block and Greece's lenders ask from the people to pay until the last drop of their blood. Without any plan for the country's future development, the lower and middle Greek classes are called to rebuild the ruins of Capitalism. Those who are responsible for the crisis now point their fingers to the working class, thus putting on the table outrageously fake dilemmas: Austerity or bankruptcy, neoliberalism or disaster.
The Greek crisis, despite all it's tragedy, became a chance. Gave the opportunity to practically question a political and economic establishment which Francis Fukuyama had called "the final form of human government" ( The end of history and the last man , 1992.). More than 80 years since the Great Depression of the 20th Century, the foundations of Capitalism are trembling. The mass anti-austerity movements in Greece and Spain, the Occupy initiative in the United States as well as the Arab Spring consist proof that people start to wake up from the "hibernation" of Capitalism's illusive welfare.
The crisis in Greece provides the best evidence that the Capitalist model of governance has utterly failed and must be overthrown. It seems to be an extraordinary coincidence that Capitalism is collapsing in the place where, almost 2,500 years ago, Philosophy and Democracy were born.
-
Born in Salonika, Greece in 1984, Nicolas Mottas is a graduate of Political Science, Diplomatic Studies, Conflict Resolution, a political research student (PhD) and a freelance article-writer. He has been a collaborator for the Greek newspaper 'Macedonia' and a commentator for Greek-Australian weekly 'Neos Kosmos'. Mottas has founded the Greek website Guevaristas.net devoted to the Argentine Marxist revolutionary Ernesto 'Che' Guevara.
Link:
http://www.opednews.com/articles/It-s-not-Greece-It-s-Capi-by-Nicolas-Mottas-120302-233.html
If Karl Marx could see the recent developments surrounding the Greek crisis he would certainly feel vindicated. Last Tuesday, the IMF and Eurogroup were trying for hours to reach a deal regarding Greece's new bailout package. In the name of avoiding default, the Greek people will now have to face a new round of extremely harsh austerity policies. But, in fact, it wasn't the country's bankruptcy which the leaders were trying to avoid; the real deal in Brussels was - and still is - to keep alive, at any cost, the politico-ideological corpse of the actually existing Capitalism.
For more than three years now, most international media and analysts refer to a "debt crisis" combined with financial mismagement by domestic governments. This is misleading. The actual truth is that the profoundly unfair and immoral capitalist system we live in - the one which supposedly "thriumphed" over marxist economics, as neoliberals and keynesians use to argue - is the source of it's own crisis. Who can argue that the ongoing crisis, which started with the Lehman brothers scandal in 2008, is the worst episode in a series of free market economy failures since the Great Depression of 1930s? In Europe, as well as internationally, the ruling elites are aware of that, thus making every possible effort to put the weight on people's back.
Today's Greece represents the epitomy of Capitalism's failure in Europe. The devastating results of this failure can be seen in the streets of Athens - in the increasing number of homeless people, in the agony of young men and women who cannot find a job even after two master's degrees, in the downgrade of citizens's living standards. The supporters of neoliberal practices and strick monetarism use to claim that Greece used to be "the last socialist european state". This is an outrageous lie. Greece, like her fellow EU members, was always a Capitalist state, functioning under the rules of free market economy. Between 1990 and 2007, a period during which Greece - governed by both conservative and social-democratic majorities - co-signed the notorious Treaties of Maastricht (1992) and Lisbon (2007).
Let's see some facts which are quite revealing about Capitalist dominance in Greece during the last two decades:
1. In 1990, the GDP of Greece was 38,000,000,000 euro. In 2007 it became 208,000,000,000 euro, thus being increased five times more.
2. In 1990, the profits of the companies (both S.A. corporations and L.L.C companies) were up to 575,000,000 euro. After 17 years, the profits of the Greece-based companies had been increased 28 times thus reaching the 16,000,000,000 euro.
3. While the profits of the private companies were reaching the above extroardinary numbers, the increase in the daily basic salary of the unskilled worker was just 15 euro.
For a period of almost 20 years, while the working people of Greece were contributing to the expanding of the country's GDP - and to the maximization of the profits of the Capitalist elites (28% in 17 years) - the lowest standard salary increased by just 1%. In fewer words, the period from 1990 to 2007 seems to be a period of continuous profitability for the Capitalists while, on the same time, the actual income of the labour classes remains the same as it was in the decade of 1980s. That seems to be part of the price the low and middle classes had to pay for Greece's ambitious aims in the 2000s: the Athens Olympic Games and the participation in the core of the E.U.'s neoliberal experiment - the eurozone.
However, there are still people who regard Greece's membership in the European Economic Community - known as the European Union since 1993 - as the modern "great achievement" of Greek politics. But who really benefited all these years from this membership? Was it the lower and middle classes of the country or specific financial elites in Athens and Brussels? Numbers are quite revealing: ( Rizospastis , May 12, 2009).
1. In 1980 (a year before Greece's accession in the EEC) the country's trade balance towards the rest of the world was 5,200,000,000 euro. Twenty-eight years later it had reached approximately 44,000,000,000 euro.
2. In the period from 1980 to 2008 the deficit of Greece's agricultural balance increased by 934%. Only during the first year of euro's introduction (2002-2003) the agricultural deficit of the country, related to the rest of the world, increased by 74%.
3. Greece's foreign lending: From 1990 to 2000 it increased by 931% (!). In 1980 the Greek public debt was 600,000,000 euro while 19 years later, in 2009, it reached the unprecedented number of 298,000,000,000 euro, thus being increased by 497 times.
4. During the last years there is a propaganda about Greece's benefits from the notorious "community packages" - structural funds that the Greek governments received from Brussels, since 1980s, within the frame of Europe's regional development policies. The total amount of community packages that Athens received in the period between 1981-2009 reaches 43,000,000,000 euro, which seems to be a considerable number. Nonetheless, it's very few related to the trade balance deficit between Greece and the EU. During that the last three decades Greece's imports were approximately 379,000,000,000 euro while the country's exports only 125,400,000,000 euro. (Greek Statistical Service, Bank of Greece & Rizospastis , 20.12.2005). In fewer words, Greece indirectly paid back six times more the money she received from Brussels. As German economist Heiner Flassbeck pointed out "Germany's surplus is the deficit of her partners".
There is no doubt that corruption consisted a major component in Greek politics' failure all these decades. But we should ask ourselves: Which is the system that promotes and advances corruption? Isn't the Capitalist system which "prepares the soil" for the interweaving of multinational corporations (see: 2008 Siemens scandal) with the political elites? Furthermore, there is a tragic irony: the present unelected Prime Ministers of Greece and Italy (Lucas Papademos and Mario Monti) are both former bankers, who worked in the past for multinational buldge bracket investment firms.
Today, a "troika" consisting of the Greek government, the IMF/EU block and Greece's lenders ask from the people to pay until the last drop of their blood. Without any plan for the country's future development, the lower and middle Greek classes are called to rebuild the ruins of Capitalism. Those who are responsible for the crisis now point their fingers to the working class, thus putting on the table outrageously fake dilemmas: Austerity or bankruptcy, neoliberalism or disaster.
The Greek crisis, despite all it's tragedy, became a chance. Gave the opportunity to practically question a political and economic establishment which Francis Fukuyama had called "the final form of human government" ( The end of history and the last man , 1992.). More than 80 years since the Great Depression of the 20th Century, the foundations of Capitalism are trembling. The mass anti-austerity movements in Greece and Spain, the Occupy initiative in the United States as well as the Arab Spring consist proof that people start to wake up from the "hibernation" of Capitalism's illusive welfare.
The crisis in Greece provides the best evidence that the Capitalist model of governance has utterly failed and must be overthrown. It seems to be an extraordinary coincidence that Capitalism is collapsing in the place where, almost 2,500 years ago, Philosophy and Democracy were born.
-
Born in Salonika, Greece in 1984, Nicolas Mottas is a graduate of Political Science, Diplomatic Studies, Conflict Resolution, a political research student (PhD) and a freelance article-writer. He has been a collaborator for the Greek newspaper 'Macedonia' and a commentator for Greek-Australian weekly 'Neos Kosmos'. Mottas has founded the Greek website Guevaristas.net devoted to the Argentine Marxist revolutionary Ernesto 'Che' Guevara.
Link:
http://www.opednews.com/articles/It-s-not-Greece-It-s-Capi-by-Nicolas-Mottas-120302-233.html
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Comments
Hide the following 7 comments
Re-tool the entire industrial revolution.
04.03.2012 01:47
This title while expressing a known point, should be examined a little closer.
DAS CAPITAL-- Three categories of capital, 1 Constant capital, 2) Variable capital, 3) Surplus Value. Knowing full well that the original class relations set up by the inception of the industrial revolution were not perfect, and that the new class needed to be born which the new industry would produce, Marxism explained to the world that the socialist society could not take place as the capitalist relations had not fully developed. However he fully explained that when the class relations no longer functioned to the benefit of the classes because the modern means of production was developed beyond the original rules and laws of production, then the class pressurers would push the new class, with the knowledge of the entire comming revolution to, of necessity, move to overthrow the old class relations that hinder all society form developing further.
Revolution becomes the mid-wife of the new society. We do not wish to abolish capital but for the workers of the societies to take hold and own and control the main means of production, so that a new set of class relations can take place and thusly the liberation of the majority workers can put in place a new harmonious and joyous planned society that ends the exploitation of present aggressive wars as foreign policy, and the pollution, poverty, gender, race, and religio discrimination. That ending the aggressive war machine and its manufactury contributes to world peace with justice.
Gender parity is a natural necessity to harmonize the entire specie. That requires doubling democracy, not as the fascist-nazis-axis powers, who wish to abolish democracy. That communist side is the most perfect relation of classes known, and when it creates the workers state the workers will have the power to end all forms of exploitation of the worlds' working classes, and then the state will have no more reason to exist, and whither away from disuse as a former tool for the exploitation of one class by another. [science-Marx and Engles]
The immediate goal is the workers state and the need for the workers to take hold of the main means of production, the banks and distribute the wealth from their value added labour each and every year to guarantee full employment, free education and free medical including natural medicine, massage therapy, and dentistry in the medicare package. Marx dicovered that the workers are the source of all wealth, and that the monopoly capitalist, feudal and enslaving classes, have kept that truth hidden from them.
However, the workers are the only class that can weild the means of production to end all forms of exploitation. Thusly viva socialist liberation. End pollution wars not endless wars for more and more pollution. What is to be done?
RE-TOOL THE ENTIRE INDUSTRIAL REVOLUTION.
Coal, gas, oil, and atomic energy is destroying the planets livability, and therefore the last forty-eight years of ecological green revolution has brought into being the hi and low tech tools to put in place wind, tidal, and solar power, which transforms to electricity and is more power than can be used by society. No more blackouts. This non-pollution is given freely in natures kinder laws and provides work for all and forever more.
Also as the new millenium is upon us make sure to double democracy and elect woman equally at all levels, thusly restoring the matriarchy, which is the Holy Grail. Fifty-fifty electing is natures way of committing to natural ecological organic balance of the web-of-life on the planet. Workers of the world, unite!! You yet have a world to win!!
Union Jack
Dream On Sparty
04.03.2012 07:47
Muppetwatch
Oh and another thing, Sparty...
04.03.2012 07:54
Muppetwatch
Muppet Watch the product of neo liberal programming.
04.03.2012 22:09
Faced with a returning army of people trained to kill who had just defeated fascism with a hankering for a more just society voted in a socialist labour party and demanded free education, free health care and a welfare state, this is democracy. Of course the rich can't afford it well that's democracy so tough.
What have anarchists contributed, well I can only speak personally, but I was chair person of a housing co-op that prevented houses in my area from becoming derelict and falling into dis uses we housed peole in housing need at fair rents. Round the corner from me is a successful ethical food wholesaler a co-op. Anarchists here are involved in the local credit unions, ethical green energy web service providers.
So stop blaming the victims of this hideous extremist capitalist catastrophe that you wet yourself over every day. You are the product of false prophets like Milton Friedman, the rediculous Ayn Rand and right wing ideology. You are an ideologue and are full of the same shit as the Cato institute among other multi million dollar think tanks set up by the ruling class in the 50's and 60's because the extremist fundamentalist capitalists were losing the moral argument.
Troll Botherer
It's stupid, the economy
04.03.2012 22:24
a
reason why anarchists prefer bank robbery
04.03.2012 23:33
Welfare State?
Pins and Needles.
07.03.2012 18:55
If you think it through you will find that we here in the west have two separate economic systems in place. The first being the base market economy which pre-dates Capitalism by many hundreds of years...and the second is a veneer layer of economic varnishing that has grown up around population growth.
The first market economy is a simple and basic type economic arrangement which allows for those with goods and services to act as seller and the buyer who requires those goods and services. The two meet and you have a very basic transaction. Both parties determine the outcome of that transaction. This is the base economy of all nations. It is morally impossible to object to this type of system. But there is scope for environmental objection.
And then you have Capitalism.
Capitalism is when you have both buyer and seller being kept apart in order to facilitate a middle man who has neither goods and services, nor money. The middle man acts as a paid go between and makes a living off taking control over the transaction.
Capitalism allows for those without goods or services, and those without money...to live outside of absolute poverty. Without Capitalism, you have limited carrying capacity in terms of population size. The UK having a population of 65 Million people would be impossible without Capitalism because we are poor in resources. Social Care, welfare and contingency would not be possible either.
But Capitalism is also the worlds leading cause of inequity now. Simply complaining about Communism during the 20's or National Socialism during the 30's and then claiming that modern Capitalism is competent by those standards just doesn't cut it. Modern day Capitalism is feeding a cycle that is no longer valid.
Simply put, infinite growth is just not possible in a finite world. The superstructure that underpins and validates Capitalism has always been one of eventual collapse and chaos. This is because the Capitalist mindset is not capable of sustainability. The Capitalist mindset is short term and stridently exploititive. When Capitalism brings us all to a state of failure...most Capitalists will abandon society and head for the hills. During the great plagues in Europe, the people were abandoned by their elite and simply left to die. Capitalists are not here to make the nation wealthy, nor are they here because they have a sense of the public duty. They are here for themselves only. They always have been.
It is the nature of the Capitalist to live off the wealth of others. This might seem parasitic and in many cases it is, but we also have to keep in mind that the Capitalist shares a bed with the worlds disabled, the worlds poorest, the worlds pregnant and the worlds most needy. They all have lack of goods, services and money. They must be looked after.
And so you must have centrally controlled contingency to ensure adaquate taxation can be raised to provide welfare for those needy.
If you leave that to the Capitalist...you will see generic widespread and pandemic poverty worldwide. The Capitalist is not capable of public duty unless it entails taking control of the public wealth...for a profit! You must NEVER attempt to wring profit from essential services.
In the UK, we are in an advanced state of neglect. We have a Capitalist veneer on top of our naturally occuring market economy and that veneer has led to the appearance of Capitalist ideology being inserted into the welfare provison itself. This amounts to the privatisation of welfare provison and critical services. This is NOT a sign that our economy is becoming more developed...this is a sign of our developed economy becoming unstable...as a result of over-Capitalisation.
The anti-Capitalists role is clear. It is the veneer we are after...and we should guard against allowing the Capitalist to re-formulate our narrative into an assault on the underlying market economy and its inhabitants, in order to ingratiate themselves further.
You cannot defeat an empire by throwing stones at it. The empires vandals will simply throw larger stones at their enemies within the empire...with us a ready made culprit. To defeat this empire, you must filter it!
anonymous