By Mingeli Palata
If there is one word that is not popular in today’s politics, its communism. Dear friends that word is so unpopular that it’s not advisable to use it especially if you have intentions of being politically trendy. Communism is not the sexiest of words and if you mentioned it among western friends they would call you politically gay. Okay, enough meandering, let me let it out; ‘I am pro communism’ but I find it fashionable to call myself a ‘contemporary Marxist’.
Yes communism is such an awful word to be associated with but like it or not Karl Marx has returned and today as I speak ‘Das Kapital’ is selling like hot cakes the world over due to a recently famous combination of words called the Global Economic Crisis or the Global Credit Crunch. By the way, the word ‘bailout’ has been voted the word of the year in the US and my rat eating neighbor from Chipata recently named his son Kledit-Klunch Mbewe!
Now for the average person reading this, this combination of mysterious words has resulted in to the record depreciation of the Kwacha and mine job loses throughout the country. Yet capitalist and economic pundits have had a hard time accepting this new reality but to spill it right in their face- Capitalism is fundamentally broken.
First the Great Depression which occurred in 1929 and now this; ‘The global economic crises’- a huge problem caused by the continuous failure to acknowledge the flaws of capitalism. Its simple, capitalism is all about free markets in which banks and financial institutions do what ever they like, they trade securities, bonds, stocks, mortgages to whoever and when ever they want. It’s called the principle of demand and supply- all regulated by market forces. Sounds fair right? WRONG! This system makes society prone to one of mankind’s’ grievous curses, you guessed right; Greed.
It being a free system, market players borrow and borrow, and because the system is so interdependent, if a few people default- everybody including the poor miner in chingola is affected. Now with such an inevitable system in place, why on earth would a government leave everything to the market forces? Isn’t that irresponsible? Well I guess the capitalists were confident that the system was perfect, but one thing they forgot that man’s biggest threat is himself.
Now world over markets are in turmoil, big companies are closing, people can’t pay back their mortgages and my abused example of the Chingola miner is losing jobs. Harold James, professor of History and international Affairs at Wildrow Winston School in the USA says in quote ‘in the face of the difficulties of the big automobile producers and smaller suppliers alike, many are demanding that, as part of the rescue package, THE STATE SHOULD COMPEL BANKS TO LEND.’
Now, does this ring a bell in your mind? Well if that is not enough, allow me to quote J. Bradford Delong, a professor of economics at University of California and a former US Treasury Secretary who suggested the following as a measure central banks should take to mitigate the impact of the Global economic crisis. ‘Central banks should try to keep the economy at near full employment by pushing asset prices up when unemployment threatens to rise.’
I don’t know about you but for me, one thing is clear, the world has now realized that the market cannot not be left to float on its own without state involvement visa vies protecting and directing its growth- sounds like moderate socialism doesn’t it?