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Bad debts will continue to block new investment
• FISCAL injections into the economy are important if the effects of the recession are to be softened, said your Comment of January 15.
The recession and the potential unemployment you highlight is the class warfare of the owners of capital, trying to save their own wealth at the expense of others.
All the bail-outs and fiscal stimuli are the fruit of a determined investment strike on their part.
Giving in to them won’t restart the economy, but they may save a few individual firms and investers from the inevitable chop.
Capitalist economic crises are not caused by Keynes’s “animal spirits”, but by the misalignment between capital investment and profitability – the law of no profit, no investment proceeds to jam up the economy.
The “bad debts” remain on the banks’ books, and will continue to block new investment and growth until they are cleared. The only rational response is to refuse to give in to the demands of these investment strikers.
Our best interests are served by removing the cause of this crisis – capitalism itself – and replacing it it with a system of common democratic ownership of wealth with production for needs, not profit.
Bill Martin
Socialist Party
Fortess Road, NW5
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