THE SHARP fall in the world's stock markets is a sure indicator that world capitalism has failed to overcome recession. One year ago, when Clinton came to power in the US, expectations were high that the US economy would lead the way out of the mini-slump.
These expectations were wrong. 'Clinton economics' is already a total failure.
Slowdown
Continued economic recession in Britain, worsened by the slowdown in Britain's key export markets in Europe, means that the financial crisis of the British state has deepened.
Tax revenues have fallen and social security spending has spiralled upwards. The result will be huge anti-working class attacks in the 30 November budget.
The attacks will take two forms: massive cutbacks in the transport, local government and housing budgets, and the imposition of VAT on a range of previously-exempted consumer products.
Threats by chancellor Clarke to cut back the defence budget has been predictably dropped in the face of backbench Tory opposition.
Following the decision to put VAT on domestic heating bills, the government has moved to impose the tax on fresh orange juice, a step towards VAT on all food products.
Books Other targets could include books and newspapers and children's clothes.
VAT is a tax which hits the poor. But local government and housing cuts will also hit workers' living standards. And a new assault on local government jobs is a cerlainty.
The strikes in Europe (see page 5) and the civil service strike last week are a sure sign that economic recession is leading to a massive assault on jobs and conditions
SOCIALIST OUTLOOK No. 52, November 13 1993, Page 4