How will US credit crunch hit NZ?
The Austral/Asian bloc will benefit from the devaluation of the US$ as the Euro and Yuan play a larger role as ' world money'. The
This 'dollar hegemony' is waning as today the
FTAs are really about buying up assets
The only reason that NZ is chasing Free Trade Agreements with nations in the Asia Pacific such as
Of course, from a capitalist standpoint, the objective of free trade and investment in all three countries, as well as other FTA’s (see box on FTA’s and the P4), is to increase the rate of exploitation and cheapen the labour content of the commodities produced, so as to gain greater world market shares and more profits.
However, the US and increasingly China is investing more and more of its surplus capital as Direct Foreign Investment so that it can exploit the productive resources of developing countries and emerging markets. What they are looking for in NZ is a free hand to buy up the remaining private and state assets. From a working class standpoint, the benefits from growth for the capitalist investors, in all three countries, are at the expense of the workers. Therefore, workers in these three countries have very different class interests from the capitalist owners.
Workers answer to FTAs are STAs
In response to FTAs the interests of workers is not to appeal to their own capitalist class to protect their jobs. This leads to the ‘race to the bottom’ as workers sell out their wages, conditions and other workers jobs in the hope that they can keep their own. In every country were workers have tried this protectionist strategy they have been defeated and lost their jobs anyway.
The only way for workers to keep their jobs is to take control of production. This means socializing the means of production i.e. labour and materials. This is the only way to make sure that production is planned for the benefits of workers and is ecologically sustainable.
In order to build up the power to socialize production, workers have to fight now for more control of production. This does not mean joint ventures in which the nation state concedes ownership to multinationals. Capitalists are happy to operated ‘shared production’ as in
Socialism means occupying and expropriating capitalist property, turning that property into workers property, and planning production for need (not profit). Workers in every country need to unite and coordinate internationally to plan Socialist Trade Agreements. This would take the alternative agreements such as ALBA, between