SP Newsletter No.251
As the global economic crisis worsens by the day, world leaders are having to admit that the crisis is far more serious than they previously claimed. Some Governments have already fallen and many others are facing an uncertain future.

In Australia, where the crisis has not yet hit as hard as in other wealthy countries, Prime Minister Kevin Rudd has changed his tune. After months of claiming that continuing growth in China would insulate Australia from the worst of the global downturn, Rudd has now admitted that “this crisis now affects Australia fundamentally”.

In reality a recession will mean that bosses will try to offload their problems onto ordinary people. Job losses, cuts to pay packets and cuts to hours will be first on the list. This coupled with rising costs of living will mean a massive decrease in the standard of living for millions of Australians.

Rudd’s stimulus packages may keep Australia out of a technical recession for a little while but a virtual recession is already underway. The cash handouts contained within the latest package will do little to help those facing unemployment and mortgage repayments. Similarly to the pre-Christmas handout, this money will evaporate almost immediately or be spent on reducing personal debts.

When proposing his stimulus plan, Rudd bragged that it was supported by the Reserve Bank of Australia, the International Monetary Fund and the Business Council of Australia. In doing so he shamelessly admitted that the package was being introduced to satisfy the interests of the rich and powerful. Instead of protecting jobs and raising the standard of living, the plan is using taxpayer dollars to sure up the profits of the bosses!

Unfortunately most unions are totally unprepared for unfolding situation. Some have already accepted job losses and pay cuts without even putting up a fight. It is not the role of unions to ask for their members to be fast-tracked into the dole system or to just challenge cuts in the courts. The job of the union movement is to fight to ensure that workers are not made to pay for the crisis.

Unions need to defend every job and fight to maintain pay rises for their members. If companies claim they can not afford to stay open, or give workers pay rises, unions should demand that these companies open their books and show where their profits have gone. If bosses are incapable of running companies then they should be nationalised under workers control.

There are two options currently facing Australian workers. The first is that we just stand back and let the bosses make us pay for the crisis that their system created. The alternative is that we fight to maintain jobs and decent standards of living. Capitalism can only offer unemployment, low wages and worsening living standards. Only by replacing capitalism with a democratic socialist system can a decent future be secured for all.

Socialism 2009

Capitalism in crisis: A day school on understanding the world economy
Saturday March 21st, 11am till 5pm at Trades Hall in Melbourne.

Three sessions including: An introduction to Marxist economics, How the global downturn will effect Australia and Fighting back against capitalism. Costs are $5 unwaged, $10 waged or $20 solidarity price. To book your place, or for more information phone 03 9639 9111 or click here.
http://www.socialistpartyaustralia.org/archives/1606

Upcoming SP meetings

The Melbourne Branch of SP meets every Wednesday at 7pm in Trades Hall on the corner of Lygon & Victoria Streets Carlton South. Upcoming meetings include:

4/3/09 – Venezuela after the referendum
11/3/09 – 20 years since the collapse of Stalinism
18/3/09 – Public transport in public hands. Public meeting featuring speakers from SP, Greens and Public Transport Users Association.

For more information or for details of meetings in other parts of Australia contact our National Office on 03 9639 9111.

News links

Guadeloupe: General strike in the French-speaking Caribbean
http://socialistworld.net/eng/2009/02/2602.html

Ireland: ICTU ballots for 30 March general strike
http://socialistworld.net/eng/2009/02/2601.html

Kashmir: Health workers force government to accept demands!
http://socialistworld.net/eng/2009/02/2403.html

Join the Socialist Party

If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.

We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system, the system that is at the root of all of these problems. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. To join SP contact our National Office on 03 9639 9111 and we will send you a membership application form.

Subscribe to ‘The Socialist’ newspaper!

Support the Socialist Party by subscribing to our monthly newspaper ‘The Socialist’. Subscription rates are only $10 per year or $20 solidarity price. You will receive 11 copies per year delivered to your door every month. You will also receive our email newsletter every week and you will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe to ‘The Socialist’ contact our National Office on 03 9639 9111 and we will send you a subscription form.

Socialist Party contact details

Melbourne: Phone Anthony on 0396399111.
Sydney: Phone Gary on 0297287727.
Newcastle: Phone Samantha on 0249681545.
Perth: Phone John on 0894020728.
Rest of Australia: Phone our National Office on 0396399111.
Rest of the world: Phone our International Office on ++ 44 20 8988 8760.

The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). The CWI is organised in over 40 countries across the world.

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