Dependence on private corporations to fix inequality and climate change will be a dead end

Global economy faces $19tn corporate debt timebomb, warns IMF

Here we have the IMF warning the capitalist class, and the governments that protect it, that they have a problem. Interest on corporate debt that cannot be repaid.

It’s yet another problem of their own making.

The IMF is a capitalist institution and is one of the chief governors of the 21st century system of gross exploitation so that it stays in place. It is one of the 3-4 global coordinators of the neoliberal form of capitalism that we have had since the mid 80’s. It is sending the warning in order to keep this system of exploitation (of the mass of humanity and their natural world) together.

In Australia there is no public discussion about how serious this corporate debt problem is in our economy. However, we do know that total profits are very healthy and, despite that, corporations have been failing miserably to invest those profits in productive capacity.

In this context, The drift to a global recession continues and Australia will be a part of that.

The trouble with the growing corporate debt problem is that it will make the recessión currently taking shape a very serious big problem for 90% of humanity, and also nature.

We are talking more unemployment and underemployment, idle productive ability, even more downward pressure on both industrial wages and the social wage (for example, adequate housing), and intense search to exploit new land and rivers and oceans.

All of this coincides with the worsening climate emergency and, in Australia, a national government that is in wilful denial of it because that suits the fossil fuel corporations, and others in their supply chain.

The movements of the 90% against inequality – eg unions – and against global warming must keep growing and grow even tougher to make sure there is a rapid and democratic just transition driven along by big public investment (job creating) and where necessary takeovers of private corporations that hold productive capacity but are otherwise falling apart.

Global economy faces $19tn corporate debt timebomb, warns IMF

Author: Don Sutherland

I am a retired left wing and labour movement activist. Before that I worked for a long time in the Australian union movement in union education, Australian and international solidarity and organising. I am also active in Cuban solidarity, the SEARCH FOUNDATION, and promoting discussion, debate and action about green socialism based on workers control and social ownership.