A structural crisis:
bishops, Canadian
A structural crisis The following is an excerpt from "Ethical Reflections on the Economic Crisis," issued by the Episcopal Commission for Social Affairs, Canadian Conference of Catholic Bishops,...
...THE PRESENT RECESSION appears to be symptomatic of a much larger structural crisis in the international system of capitalism...
...Indeed, these structural changes largely explain the nature of the current economic recession at home and throughout the world...
...We are now in an age, for example, where transnational corporations and banks can move capital from one country to another in order to take advantage of cheaper labor conditions, lower taxes, and reduced environmental restrictions...
...In this context, the increasing concentration of capital and technology in the production of military armaments further intensifies this economic crisis, rather than bringing about recovery...
...While there does not appear to be a global shortage of capital per se, large-scale banks and corporations continue to wait for a more profitable investment climate...
...The consequences are likely to be permanent or structural unemployment and increasing marginalization for a large segment of the population in Canada and other countries...
...And to enforce such economic policies some countries have introduced repressive measures for restraining civil liberties and controlling social unrest.est...
...Many companies are also experiencing a temporary shortage of investment funds required for the new technology, due largely to an over-extension of production and related factors...
...In effect, capital has become transnational and technology has become increasingly capital-intensive...
...To stimulate economic growth, governments are being called upon to provide a more favorable climate for private investments...
...Observers point out that profound changes are taking place in the structure of both capital and technology which are bound to have serious social impacts on labor...
...Since capital tends to flow wherever the returns are greatest, reduced labor costs and lower taxes are required if countries are to remain competitive...
...We are also in an age of automation and computers where human work is rapidly being replaced by machines on the assembly lines and in administrative centers...
...As a result, most governments are introducing austerity measures such as wage restraint programs, cutbacks in social services and other reductions in social spending in order to attract more private investment...
...In order to restore profit margins needed for new investment, companies are cutting back on production, laying off workers, and selling off their inventories...
...A structural crisis The following is an excerpt from "Ethical Reflections on the Economic Crisis," issued by the Episcopal Commission for Social Affairs, Canadian Conference of Catholic Bishops, 1983...
...The result has been an economic slowdown and soaring unemployment...
Vol. 110 • February 1983 • No. 4
