THE only way that bankrupt capitalism can survive is through making the working people of the world pay for its crisis with their jobs, their lives, their living standards and the futures of their children, and the generations to come.
Yesterday, the capitalist press was full of the latest manifestation of the death agony of capitalism and was pointing out that the ‘tax burden’ on the working class is set to rise from 33% of GDP in 2019 to 37% of GDP in 2024, according to the Institute of Fiscal Studies (IFS).
That families will be paying more than £100bn extra in tax by next year compared with that in the last election, is the prognosis of the bosses. It has been pointed out that this rise in taxation is one and a half times the rise seen during Blair’s first term in office.
The IFS’ Ben Zaranko said that: ‘It is likely that this parliament will mark a decisive and permanent shift to a higher tax economy.
Liz Truss, who was PM for a month last year before the developing crisis brought her down said that this ‘Unprecedently high tax burden’ is one of the reasons that the British economy is stagnating and why ‘we need to cut taxes to help make Britain grow again’.
PM Rishi Sunak announced a freeze to income tax thresholds as Chancellor in 2021 and has extended that policy until 2028.
According to HMRC projections nearly 1.5 million people are to be dragged into the higher rate 40p and 45p tax brackets in the next five years.
Chancellor Hunt also raised Corporation Tax from 19% to 25% from April despite the widespread criticism from business leaders.
Sir Charles Bean, the former Bank of England Deputy Governor, said that there is now ‘an expectation’ that ‘the state will step in ‘as a result of the financial crisis, the pandemic and the energy crisis’.
Meanwhile, the Daily Telegraph’s Ambrose Evans-Pritchard commented that today’s unfolding bond rout is a variant of the Truss Gilts saga and collapse of last year which led to a run on the pound, the dumping of Truss, and the Bank of England taking control.
He added ominously that ‘This time it is happening to America’s $25 trillion Treasury Market.’ He advised: ‘Think of it as Liz Truss going global’ for a world-wide collapse of capital.
Evans-Pritchard warned: ‘Right now the Powell Fed will not flinch until the Earth is scorched dry’, adding that ‘This is how big financial accidents happen’, like the great Wall Street crash.
His prediction for the days ahead was in his headline for the day: ‘Collateral Damage and a mounting risk of a global Liz Truss’ accident.’
The anarchy of capitalism is in fact deranging its key mechanics and its key operators, the Central Bankers. They, and their system, are heading for an almighty crash that will seek to make millions of workers destitute, making them pay for the crisis that the big bosses and bankers have created.
Their system is heading for an almighty crash, and all that they can offer is that they will be taking the working class and its youth over the edge of the abyss with them.
The working class meanwhile is being revolutionised by the same crisis that is driving the capitalist ruling class to the edge of the abyss,
The working class worldwide is on the march. It is determined that the ruling class will pay for the crisis of the capitalist system, and will not allow 1930s style starvation, and along with it, fascism and racism, to return, to force the masses to accept a new world war to redivide the planet.
Now is the time to build the Workers Revolutionary Party in the UK along with a mass Young Socialists movement to lead the developing British and world socialist revolutions.
We urge the working class and the youth to join the WRP and its youth movement, the YS to lead the British Socialist revolution to the taking of power and socialism.
We urge the workers of the world to set up sections of the International Committee of the Fourth International in every country to lead the world socialist revolution to its victory!