‘Hot Money’ No Basis For Development

Neoliberals have long argued that countries need to attract foreign investment as the main way of securing growth and development. To do so governments were to ‘liberalise’ their economies, meaning reducing regulation, allowing the free flow of capital in and out and privatizing state industries.

The recession affecting Europe and the US led to the use of very low interest rates to try to revive these economies. This resulted in much investment moving to ‘emerging economies’ such as Argentina, Brazil, Turkey, India, South Africa and Indonesia. But as the US economy has recovered, at least enough for the US Central Bank to reduce quantitative easing and increase interest rates, the ‘international investors’ have moved their money back into the US causing the value of currencies in those countries to fall significantly.

They are now faced with the dilemma of either large increases in interest rates reducing their growth or large devaluations of their currencies which increases import costs and causes inflation. In the case of Argentina this is made worse because the country had a positive balance of trade from the export of soya and other products. Soya production however, is controlled by a few capitalists, who will profit from a devaluation of the peso and so have stopped exporting.

Significantly Bolivia, Ecuador, Venezuela and other ALBA nations, which have not relied on foreign investment but used their own resources and control strategic industries, have retained economic stability. Sovereignty and self-reliance is, in the long term, the real answer to growth, development and equality.

The Workers’ Party Twitter Feed

In dealing with Covid19, Collectivism and Science have shown the way world wide; in Britain it's been Trade Unions and the NHS. Capitalism has shown itself unwilling & incapable of dealing with this crisis.

Caractacus Mann@CaractacusMann

From Yemen saying "Communism saves humanity." https://twitter.com/CPBritain/status/1308301456051597314

Neo-liberal managerial approach, from a neo-liberal political party. More evidence for ending the illusion that the Labour Party can ever be socialist which is based on a deeper illusion that the Parliamentary system and existing state can be reformed in the interests of workers.

Paul O'Connell@pmpoc

The British Labour Party ending its own furlough scheme a month before the national scheme, and letting employees go, in the midst of a global pandemic and on the cusp of an economic depression - under new management indeed:

In the USA we see a contradiction between aspects of neoliberalism; i.e. between authoritarianism of the state repressive apparatus and liberal economics of cuts in public services. Both aspects end up damaging workers.

Miles@UnitedLeftist

HUGE federal overreach here. https://twitter.com/kylehooten2/status/1308051304846065666

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