The Meltdown Goes Global: It is time to rethink capitalism

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from In These Times:



Features » April 15, 2009

The Meltdown Goes Global
It is time to rethink capitalism.

By David Moberg



Only a year ago, the United States seemed likely to be the main victim of its own bursting housing bubble and financial crisis. Now the American collapse has deepened—and spread worldwide.

Economic activity is shrinking in nearly every country, with Japan facing the steepest drop among the Group of Seven rich countries. Even in red-hot China, unemployment has become a major problem. This year, for the first time in 60 years, the world economy will contract.

It’s a global crisis—and a crisis of globalization. But is there a global cure?

In the ominous shadow of the failed 1933 economic summit in London, Group of 20 (G20), made up of the richest countries and big emerging economies, like China and India, met in London on April 2, as In These Times went to press. With many details still missing, G20 members pledged $1.1 trillion in new resources for the International Monetary Fund (IMF) and other international financial institutions. They also agreed to new coordinated and global financial regulation, including action on hedge funds, tax havens, credit rating agencies and executive compensation. And they committed themselves to free trade and sustainable development.

The problems were never going to be resolved in one meeting. Two major, intertwined crises exist. First, jobs, income, credit and economic activity are spiraling into a self-reinforcing, deepening collapse. Second, the model of capitalism that dominates the global economy is failing and must be radically reformed. ..........(more)

The complete piece is at: http://www.inthesetimes.com/article/4361/the_meltdown_goes_global