Australian Left Review No. 1 June-July 1966

Australian Left Review, Dec 1966

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Australian Left Review No. 1 June-July 1966

P. dOCRACY IN THE COMMUNIST PARTY ASCRIPTION ..P. CONFLICTS CAPITALISM ASCRIPTION ..P. CONFLICTS Editor: R. Dixon. Published two-monthly. Assistant Editor: E. Aarons, B.Sc. Single copies: 30c. Business Manager: 168 Day St., Sydney. Yearly subscription $1.75* Phone: 26-2161. Representatives:— Mrs. B. Smith, 45 Devenish St., Victoria Park East, W .A.; Mr. E. A. Bacon, 92 Edith St., Enoggera, Qld., 5 5 -4 5 7 2 ; Mr. B. Taft/ 11 Rose Ave., Surrey Hills, Vic.; Mr. F. Dean, 12 Station St., Wollongong, N.S.W.; Mr. G. Curthoys, 16 Rydal St., New Lambton, N.S.W. By B. TAFT A n a ly sin g in modern the writer there is marxist these developments capitalism, argues that need for a reappraisal of new features. Recession 1953-1954: This was a mild recession affect­ ing the U.S.A. only with a decline of 4 per cent. Recession 1957-1958: Affected the U.S.A. more severely than Western Europe. U.S.A. decline was 12 per cent, France 2.6 per cent, Sweden 3.3 per cent, Italy 1.4 per cent, West Germany 0.7 per cent. This affected Australia in 1958. Recession late 1960-1961: Hit mainly the U.S.A. with a 7 per cent to 8 per cent decline. This hit Australia in 1961. These conclusions may be drawn: 1. T h e cycle is considerably shorter. roughly every 4 or 5 years. 2. T h e crises are much briefer than before. 3. They are considerably less severe than crises. ficance extending well beyond the sphere of economics. Jt affects the whole strategy of the working class move­ ment. If the former view is adopted, there will be ten­ dencies to wait for conditions to change; if the latter, marxists have to find the way to win wide popular support in present conditions. Perhaps five main factors can be distinguished:— 1. T h e impact of the world socialist system and the competition between the two systems. 2. T h e break-up of the colonial empires and the eco­ nomic development of these predominantly agricultural regions. 3. T h e revolution in science and technology. 4. T h e growth of State monopoly capitalism. 5. T h e effect of the class struggle under these condi­ tions. T h ere are differences among marxist economists about the respective weight of these different factors and no attempt is made here to resolve them. T h e five listed seem the most im portant factors which determine the course of post-war economic development, but it is the T O T A L effect and the IN T E R A C T IO N of all these factors which have made the present degree of control over economic development and influence on the course of the cycle possible. Sometimes the Keynesian techniques and their modern developments, the fiscal and monetary policies which are used today, are seen as the sole reason for the influence over the economy. But in fact the objective forces m en­ tioned above determine to a considerable extent why these Keynesian techniques have the present degree of effectiveness. Indeed, were it not for the challenge of socialism, it is very doubtful whether the decisive groups of monopoly capitalism would have accepted the appli­ cation of Keynesian measures which they had strongly opposed earlier as an infringement of the freedom of the individual capitalist. Let us examine these five factore in more detail. 1. T he impact of the world socialist system on the operation of capitalism is very far-reaching. Competi­ tion between the two social systems now clearly influences economic policy. In the pre-war days it was generally denied that a “free economy” could or should concern itself with a rate of growth. T h e socialist alternative with its absence of cyclical crises has made the capitalists extremely sensitive to the clangers of a severe crisis with mass unemployment, destruction of goods, etc. This has assisted the growth of state monopoly regulation. Though the individual capitalist will not and cannot do much about the rate of growth which is, however, now V ITAL to the mono­ poly capitalists as a whole, as is the avoidance of a severe c (...truncated)


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Australian Left Review No. 1 June-July 1966, Australian Left Review, 1966, pp. 1-64, Volume 1, Issue 1,