Today 2011 is ending. Tomorrow 2012 is starting.
The year 2011 is the year of no growth or low growth for the economies of USA and Europe. While the low growth coupled with high unemployment resulted in serial protests in the name of Occupy Wall Street in USA, the no growth, high unemployment, debt crisis of the Governments and imposition of severe austerity measures on the people cutting their incomes resulted in several protests and struggles in several countries in Europe. There is change of Governments due to the popular unrest in Egypt and other Arab countries. The USA and its allies intervened in Arab countries to have domination in that area for having control on the oil resources. The killing of Gadafi in Libya is a part of this strategy. Japan also facing the problem of low growth. The growth rates in China and India are comparatively higher than that of USA and European countries, but slowing down due to the low growth or no growth in USA and Europe.
2012 is expected to be a time more difficult than 2011.There is a possibility of the world again facing a recession. In any case the prediction is that the economies will grow much slower in 2012 compared to 2011. A serious discussion and search is going on in USA, Europe and India for coming out of this situation and for reviving the economies. But this search is mainly with in the confines of the domination of the finance capital which is not interested in growth. The Governments in USA, Europe and India and the parties in power and in opposition dominating the political scene are representing and controlled by the finance capital. Hence they are unable to find any real solution.
To come out of this situation and to revive the growth, it is necessary for the economies to come out of the destructive grip of the finance capital. The Governments should tax the rich more and incur expenditure for developing industry and agriculture. If necessary the Governments should resort to expanding money supply to increase the demand. This is what was suggested by the famous economist Keynes. But such demand management is being prevented by the domination of the finance capital.The finance capital that is dominating the world now has insisted and succeeded in imposing a limit on fiscal deficit of 3% of the GDP in several countries including India. This means Governments are prohibited from increasing the demand and creating the employment beyond the limit of 3% of the GDP, over and above its revenue. But the revenue of the Governments are decreasing relatively since the finance capital compels the Governments to impose less taxes and to grant more concessions in taxes on the capitalists. Therefore due to this domination of the international finance capital, the Governments in capitalist countries are prevented from resolving the problem of low growth or no growth by increasing the demand by increasing the supply of money.
The only solution possible to revive the economies is to liberate the world from the grip of this finance capital. But the domination of the finance capital at global level is not due to the mistake done by this or that Government, but it is the result of the development of the Capitalist system, and it is the law of the capitalist system. hence its domination can be ended with the ending of the capitalist system. Till then only temporary reliefs can be achieved by struggles compelling the Governments to do some thing for increasing the demand and employment or the dominant imperialist countries will try to come out of this situation by resorting to wars(to create the demand for weapons), by looting the natural resources(Oil in Arab countries) minerals in third world countries etc and by destroying the small peasants in countries like India.
Therefore in the new year 2012 the task is to carry out the fight to see that there is increase in the demand and employment by pressurizing the Governments to tax the rich more and to expend more for creating employment. The ultimate aim of the struggle should be to change the capitalist system itself.