Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 17 September 2008

Recession, Banking Crisis, Inflation, Pay Freeze, Wars...

It's time to fight back!

Unison Local Government strike 16-17 July in London, photo Paul Mattsson

Unison Local Government strike 16-17 July in London, photo Paul Mattsson

Shockwaves spread globally as two of the biggest multinational banks collapsed - Lehman Brothers and Merrill Lynch - and a third could follow. As stock markets tumbled, the value of pensions and savings of a large number of ordinary people were brought down too. Many thousands of banking workers are losing their jobs, including 5,000 this week in Britain.

Dave Nellist, Socialist Party councillor, Coventry

The British bosses' union, the CBI, has joined various international organisations in predicting that the British economy will sink into recession in the second half of this year. So much for Gordon Brown having 'abolished boom and bust'. As the three main political parties begin their conferences, few people expect any of them, Labour, Liberal Democrat or Tory, to provide answers to the economic tsunami facing millions of families.

The CBI believes that the recession will be "mild". But what is mild for the CBI fat cats could be traumatic for millions of ordinary people. David Blanchflower, of the Bank of England's monetary policy committee, warned that 60,000 workers a month could lose their jobs. House repossessions, already up by 24% in the first half of this year, could escalate as redundancies and short-time working hit family budgets already suffering from fuel and food price rises.

Unison Local Government strike 16-17 July in London, photo Paul Mattsson

Unison Local Government strike 16-17 July in London, photo Paul Mattsson

Millions of public sector workers face direct cuts in their living standards as their wages are not being increased enough to compensate for price rises. Price comparison website uSwitch reckons that the disposable income of the typical household has shrunk by 15% in the last year.

The housing crisis still has a great distance to go. According to Nationwide's chief executive, 2.5 million homeowners (one in five) will see the value of their home fall below the outstanding balance on their mortgage in the next year - negative equity. Even more gloomy predictions are circulating in the City of London, of negative equity hitting almost four million households.

The timid and inadequate measures from Gordon Brown will do nothing to solve a housing crisis of that magnitude. Rising repossessions, greater negative equity and the dire shortage of affordable, particularly rented, housing will be virtually untouched by Labour's proposal of a 1 billion "rescue package".

The paucity of Labour's plans compared to the scale of the crisis, is shown by recent figures from UK property value website, Zoopla, that estimates that the value of the country's housing stock has fallen over the last nine months by 1 billion each and every day!

American writer Gore Vidal once spoke of the USA as a country which has "free enterprise for the poor and socialism for the rich". New Labour's Britain, with cuts in welfare whilst billions of pounds prop up financial institutions like Northern Rock (not to protect people with mortgages - but the rich with shares in the wider banking system), fits Vidal's description just as well.

Workers need their own independent party, to challenge this rotten economic system. The Socialist Party is campaigning for such a party, and also for a fundamental change in society to eliminate capitalism's wars and recessions for ever.

Join the socialists; build the fightback!

Donate to the Socialist Party

Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our special coronavirus appeal.

Please donate here.

All payments are made through a secure server.

My donation


Your message: 


In The Socialist 17 September 2008:

Credit crunch

It's time to fight back!

Socialist Party editorial

Capitalist crisis - Karl Marx was right


No to racism: Yes to decent jobs, homes & services!

Socialist Party campaigns

Socialist candidate gains 40% of vote, stuns Usdaw leaders

Conflict in Georgia - independent position needed

Brown's feeble fuel package

Labour Party conference protest

Protest at war and occupation

Welcome to the real Manchester

Fighting city needs a fighting party

Panicky MPs turn on Labour

Privatisation and closure

No to post office closures

Protesters tackle Metro privatisation

Socialist Party feature

Middle East: End imperialist aggression!

Socialist Party workplace news

London bus strike: "Showing them our power"

Pickets cheer in West London

Ford workers meet to defend jobs

Journalists win union recognition victory

2008 Trades Union Congress: Pressure from below begins to show

Swansea rail workers fighting for a living wage


International socialist news and analysis

Interview with Cindy Sheehan: "Some kind of populist uprising needs to happen"

Scotland: Tactical questions for local government pay battle

Socialist Party review

'Bob Marley' reviewed by Jason Toynbee


Home   |   The Socialist 17 September 2008   |   Join the Socialist Party

Subscribe   |   Donate  

Related links:

Banking crisis:

triangleBarclays finally charged for having hands in till

triangleLessons of the 'N30' 2011 pension strike

triangleWaltham Forest Socialist Party: The banking crisis

triangleRotten greedy banks still threaten crisis


triangleCapitalist crisis and Corona: Johnson's budget for the bosses

triangleWhat lies behind the US-China trade war?

triangleNew recession fear stalks the world economy

triangleBristol North Socialist Party: Is a recession coming?


triangleStarmer in full retreat over C-19 rents crisis

triangleHomes needed to end overcrowding

triangle'Worst crisis in housing since World War Two' - Barking Riverside inquiry into fire


triangleHull Trades Council debates workers' political representation

triangleCrisis in council services: Labour must fight or stand aside


triangleTories whip up division over Brexit

Reports and campaigns

Reports and campaigns


Fighting Fund

We need readers' support to fight capitalist crisis



Fight P&O's billionaire bosses' jobs cut plan



Energy firm plans to make 2,600 redundant



Hull Trades Council debates workers' political representation



Schools aren't safe



Eerily quiet before second wave - don't reopen schools!



No return to unsafe construction sites



Mick Cotter 21-9-57 to 20-5-20


Rolls Royce

Strong union response needed against job cuts



Postal workers' action results in double victory for union



Organising to fight for workplace safety



Posties walk out in Peterborough after manager tests positive



Johnson claims workplaces safe but HSE cancels inspections



Safe protests against Tory corona chaos continue



Trades council debates workers' political representation

triangleMore Reports and campaigns articles...

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube



Phone our national office on 020 8988 8777


Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 07748 534 891

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041



Alphabetical listing

May 2020

April 2020

March 2020

February 2020

January 2020