Workers International League - Economic News and Analysis

Here you will find economic news and analysis past and present. Be sure to visit the Economic Analysis section at In Defence of Marxism as well.

From Socialist Appeal issue 18: the U.S. Economy
Based as they are on a vast array of often-contradictory data, economic perspectives are extremely difficult to make with any precision. Our task is to draw a general picture of the state of the economy, and sketch out the most likely path of development. From the WIL's 2005 U.S. Perspectives document. See also: Some Facts on the U.S. Economic "Recovery".

Don't Worry - It's Only a 'Soft Patch'
The U.S economy appears to be grinding to a halt. Things during the so-called recovery are bad enough; when things inevitably head south at a certain stage, working people will be hit harder than ever.

The Real State of the US Economy
A handful of articles outlining the reality of the "jobless recovery.
- American Jobs Shipped Off Again: Only the Bosses Benefit By Ryan Kristopovich
- Homelessness and Hunger in the USA
- Whose Recovery? It's all in the Figures
White Collar Workers Feeling the Squeeze of Recession: for a Planned Economy!
Jobs once considered immune from "downsizing" are now being hit hard. A democratically planned economy is the only solution! By David May.
What Happened to "Jack the Bootblack"?
Horatio Alger wrote stories about young people who were able to "pill themselves up by their bootstraps". These "American Dream" stories inspired millions to "strive and succeed". But the reality of life under capitalism is much
State Budgets in Crisis: No To Cuts On Education and Welfare!
The Federal government and 48 states are facing their worst budget deficits in decades, with several large states near bankruptcy. Federal and state workers will once again face layoffs. This will destabilize one of the few stable sectors of the economy! Once again the working people and the youth are being forced to foot the bill for the recession, while the wealthiest Americans and the top corporations are paying the least amount of taxes in history. By David May.
The Bones of the Capitalist System
There's an old saying that goes, "you don’t see the bones until the tide rolls out". The high tide that was the economic boom of the 90s has retracted, leaving in its wake many bones - the bones of a decaying economic system. Capitalism much like the ocean can be a chaotic world with many storms, many rip currents and undertows but one thing is for certain - a boom can only go on for so long - a tide can only stay high for a limited time. By Sean O'Quinn.
Our Economy is Smashed
The economic boom on the nineties is officially dead and buried and it is high time we stop searching for roses to grow from its grave. For 2002 will bring nothing but thorns in the hands of the working class. By T. Shepherd.
Economic Repercussions of September 11 Continue to Spread
The ripple effect of the terrorist attacks has spread far and wide. It was clear from the beginning that the airline and insurance industries, as well as the stock market in general (except for the armaments industry!) would suffer. But there have been other consequences that no one could have predicted. From a drop in the use of film at tourist sites to shrinking sales of toilet paper and tissues to hotels, these sorts of knock-on effects will continue to be felt in the coming months and years. Eastman Kodak, the world’s largest photography company reported a 77 percent drop in third-quarter earnings. Also of interest are the areas that have benefited from the crisis - canned soup sales, video rentals, and florist orders have all risen. But in the atmosphere of paranoia and confusion that the Bush administration has created, it is no wonder people are not confident about the future.(John Peterson, 11/2/01)

The Great Recession
The Organisation for Economic Cooperation and Development (OECD), the body representing the world's richest 30 countries, has predicted that this year economic growth would be as low as 1% and would be only 1.2% next year. At the same time, capitalist economists forecast that global economic growth this year and next would be the worst for 30 years. The great economic recession of the early 21st century is under way.(by Michael Roberts, October 19, 2001)

It's still getting worse
The last time Michael Roberts commented on the state of the US and world economy was in May. The piece was called: "The worst is yet to come". Now things are getting worse for world capitalism. The US economy is in "recession" and there is little doubt that the third quarter figures will confirm the end of the long boom. Michael Roberts updates our analysis of the present economic situation. (August 21, 2001)

The Economy - the Worst is Still to Come
During the month of April, world stock markets had a huge rally. The US markets rose around 15-30%. Capitalist investors shrugged off their despondency about the US economic slowdown. A few favourable economic figures had come out and the US Federal Reserve Bank made yet another surprise cut in interest rates. Suddenly the investor mood has changed. But have things really changed, or is the worst yet to come? By Michael Roberts. (May, 2001)

The Pain After the Gain
The collapse of the stock exchange and the effects on the real economy. By Michael Roberts (April 3, 2001)

Busted! The 'New Economic Paradigm' Goes South
For the past few years we have been carefully following the development of the US and world economies. Yet almost overnight, instead of "the boom will last forever", the press now has stories about "how to survive the recession", and openly discusses the economic slowdown. The Dow Jones Industrials (DJIA) and NASDAQ suffered overwhelming losses today in a broad-based sell-off that handed the Dow Industrials its worst percentage loss in 11 months and took the NASDAQ below the 2,000 mark for the first since December 1998. (March 12, 2001)