Developments overseas
The worsening US economy

Basahin ang artikulong ito sa Pilipino

The unemployment rate in the US grew by 6.4% this June, the highest in nine months. This indicates that the present recession besetting the imperialist economy has not abated since it began in March 2001, dashing hopes by US leaders and businessmen that the US economy would recover beginning in 2003.

Most of those who lost their jobs are from the manufacturing sector�a reflection of the country�s declining industrial production. In truth, US factories are only operating at 74.3% capacity, the lowest in the last 19 years. There have likewise been massive layoffs in airline companies and corporations of the �new economy� such as telecommunications and internet companies. The last time that job losses on this scale occurred was in 1980-83, and earlier, in 1956-58.

Simultaneously, the US trade deficit is worsening. In May, the balance of trade deficit came to $418 billion as a result of weaker exports and the growing costs of oil imports.

The Bush regime�s economic policies are also resulting in an ever-growing national budgetary deficit. The Bush regime squandered the $334 billion surplus it had inherited at the beginning of its term and within three years netted a deficit of $455 billion�which means a deficit of $789 billion in absolute terms. Even the net deficit of $455 billion is already the biggest in the US� entire history.

This worsening deficit is caused by the US� unbridled military spending and military adventurism and its maintenance of occupation troops in Iraq and, previous to this, in Afghanistan. It is likewise traceable to its preferential treatment of the largest US companies to which it has granted tax breaks, and massive layoffs of workers as well as the withdrawal of subsidies for the poor that have resulted in a shrinkage of the market and a narrower taxpayer base.

Estimates for this year alone put the amount spent for the attack and conquest of Iraq at up to $48 billion, in addition to $5 billion per month spent for the continued US occupation of the two countries. Meanwhile, the tax breaks and tax exemptions granted by Bush to large companies come to as much as $330 billion.

21 July 2003
English Edition

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