WASHINGTON, DC, December 1 — Progressive Labor Party members today joined a bold group of activists rallying in front of the DC Department of Health to demand housing for the city’s 922 people with AIDS. They are living in shelters or from couch to couch. In a chant aimed at the federally funded program called Housing Opportunities for Persons with AIDS (HOPWA), we called out:  “Housing yes! Racism no! HOPWA wait list has got to go!”

Demonstrators from DC Fights Back and the Metro Washington Public Health Association held signs shaped like homes and took over the sidewalk and median strip. People with HIV need secure housing to adhere to lifesaving medications that reduce the spread of the virus. Homelessness kills!

During World AIDS Day, many organizations hold vigils, educational events, and offer HIV tests and condoms. Meanwhile, liberal politicians make hypocritical pledges they have no intention of fulfilling. All the bosses’ politicians care about is the disease’s destruction of a labor market that they could exploit for profit, especially in Africa.

PL’ers argue that we should use the day to fight racism and build a movement to overthrow the capitalist system, which has created the conditions that has spread the HIV virus among the most exploited people in the world.  Condoms and health education may help prevent the spread of HIV, but communism can eliminate the exploitation and poverty that concentrates HIV in the poorest neighborhoods.

Capitalist media goons stigmatize and marginalize people who live with HIV, especially black and Latino workers, women, the mentally ill, and the poor.  The bosses use fear, biases and racism to justify not spending money for jobs, health care, and housing. Workers who fall into the stigma trap weaken working-class unity against the bosses.

Underlying most stigmas is racism. While most poor people in the U.S. are white, the media projects a black image of poverty, making it easier for white workers to blame poor people for their problems. In fact, it is capitalism that attacks black families with double the general unemployment rate and triple the poverty rate. Fighting racism is crucial in building global working-class solidarity.

Communism offers a society that expects everyone to contribute their energy and talent to each other without exploitation.  It promotes collective responsibility and a sense of community for everyone, regardless of race, sexual orientation, or gender.  With communism, people can live happier and healthier lives, not resorting to drugs for self-medication or settling for relationships based on economic necessity and inequality.  A society based on economic justice and equality can create the stability and security people need to end HIV.

This July, 30,000 people will attend the International AIDS Conference in DC.  We invite friends and members to join the “global village” and the mass mobilization on July 24 to call for communist revolution to end AIDS.

The “Eurocrisis” is first and foremost about the failure of capitalist over-production as well as about inter-imperialist rivalry. French and German bosses are fighting to make sure their own bankers are not stuck with losses coming from the inability of other European governments to pay their debts. Chinese bosses are looking for opportunities to gain greater economic influence on the European continent. And U.S. bosses are worried about the possibility that the Eurocrisis will trigger a second worldwide financial crash. To analyze the current crisis, we must first look at how current European power relations developed. 

After the mass destruction of World War II, the main political goal of U.S. bosses was to limit post-war communist influence in a devastated Europe. According to General Lucius D. Clay, Deputy Governor of the U.S. Occupation in Germany: “There is no choice between being a communist on 1,500 calories a day and a believer in democracy on a thousand.” Although crudely anti-communist, this quote shows why the U.S. backed the resurgence of what was then the West German economy in 1946. French bosses, the long-time enemies of the German ruling class, were initially opposed to this move. But by 1950, under U.S. pressure, they went along. 

In 1952, Stalin had written, in Economic Problems of Socialism: “To eliminate the inevitability of war, it is necessary to abolish imperialism.” Marxist analysis of capitalism showed workers how big economic crises led to mass destruction of productive forces in imperialist wars. But liberal and social democratic politicians claimed that the various national bourgeoisies could reconcile their differences peacefully. To that end, European economic unions like the Coal and Steel Community (founded in 1951) were promoted as a way for countries to avoid the terrible consequences of war. These unions, however, were maintained within the context of U.S. dominance.

After the fall of the Soviet Union and German reunification, European bosses began asserting their independence. The European Union (EU) was formed in 1993. In 1999, eleven EU countries, led by France and Germany, established a common currency, the Euro, in a subset of the EU known as the Eurozone. Now a majority of EU countries use the Euro.

The EU’s bank, the European Central Bank (ECB), is supposed to represent the interests of all seventeen 17 EU member countries. But the reality is that both Germany and France wield huge power over the ECB. Germany contributes most to the ECB’s capital and has the biggest banks in Europe. The ECB policy of raising interest rates in the midst of a sharp economic downturn has damaged the economies of smaller EU countries, but benefits Germany.

Thirsting for maximum return on investments, European banks put an enormous amount of capital into the U.S. upsurge in housing before the 2007 crash. As the U.S. housing market collapsed, these profit-driven bankers moved money into the purchase of “sovereign” bonds issued by various EU governments. Between the second quarter of 2007 and the third quarter of 2009, EU banks shifted $827 billion into bonds issued by Portugal, Ireland, Italy, Greece, and Spain (New York Times, 11/11/11). The banks reaped huge amounts from interest and made tens of millions of dollars underwriting these bonds.

In 2009, a new Greek government admitted that previous administrations had lied about the size of the country’s budget deficit. German and French bosses used this admission as a pretext to impose a vicious austerity regime on Greek workers as a condition of any EU bailout. In reality, most of the “bailout” money sent to Greece has wound up in the pockets of the French, German and other bankers who bought Greek “sovereign” bonds.

Despite these measures, the worldwide capitalist economy has yet to recover from the crashes of 2007-2008. Short of war, capitalism has no choice but to shift the burden of the bankers’ losses to the working class. Smelling blood, the world’s biggest banks and other bondholders are seeking to turn the sovereign debt crisis into a net gain by attacking living conditions for workers throughout Europe.

Bond interest rates in Italy, Spain, Ireland and Portugal have soared. This in turn has forced local bosses in Italy and Greece to install “technocrats” (direct servants of the bankers) as government leaders, and has brought a conservative, pro-austerity government to power in Spain. All of these bosses have a mandate to attack the workers in their countries even more sharply.

But far from solving the capitalists’ problems, austerity regimes can only make them worse. Several European economies are now forecast to be in deep recession before the end of this year, making it even more difficult for their governments to cover their debt payments to the bankers.

The five countries whose sovereign bonds have been downgraded owe a total of $2.2 trillion (New York Times, 10/22/11). If they were to default on this debt, German, French, and U.S. banks would sustain some of the biggest losses. According to billionaire George Soros, this “deflationary debt trap” will lead to a “self-reinforcing process of disintegration” — that is, a global financial collapse (Huffington Post 12/5/11). Meanwhile, Chinese bosses are sitting back, hoping to pick up the pieces after the crash. 

The capitalists’ current path could bring the world to a depression like the one of the 1930s, which led to World War II. Once again, the bosses’ economic crisis will compel them to re-divide the imperialists’ markets and resources and destroy productive capacity. For the international working class, the only solution to the bosses’ inevitable wars is a communist revolution.

HAZOR HAGLILIT, ISRAEL-PALESTINE, November 12 — After declaring Israel an independent state in May 1948, the racist Zionist bosses faced a problem they call: “The Demographic Problem.” Despite expelling some 750,000 Palestinians from their homes and demolishing around 540 of their villages, 20% of the population of the newly created State of Israel, were Palestinian Arabs. The majority of Palestinians, within Israel, were concentrated in two areas: The Triangle (Central Israel) and the Galilee (northern part of Israel). In those areas, Palestinians constituted the majority of the population. In order to change this, the Zionist government started a racist campaign to “Judify” the Galilee.

The heart of the project consisted of creating new settlements called “Maabara” (transitional camps — mostly tents and huts made of wood and metal sheets.) These settlements were populated by Jewish immigrants, mostly Jews from Arab countries and from North Africa.

Jewish Immigrants Source of Cheap Labor

The new immigrants served as cheap labor for local industries set up by the government and the bosses. The new settlers  increased the Jewish population in the Galilee which led to a Jewish majority. The new settlements populated “The Frontier” in the north and south and could serve as cannon fodder and as a first barrier in case of an invasion by a neighboring Arab country. The Zionists gave these settlements a special name calling them a “Development Town”(Ayarat Pituach). Shderot in the South, known as a target for Kassam rockets from Gaza, is one of them, while Hatzor Haglilit is one in the north.

The policy of the Zionist bosses was similar in most of the “Development Towns.” A cheap labor force was at hand so the government, with money from local taxes and donations from rich Jewish bosses overseas, gave grants and subsidies to local bosses who established industrial factories in those towns. They employed the local new immigrants at a minimum wage making millions of dollars, while maximizing their profits. As a result of this policy the “Development Towns” turned out to be towns owned by the local industry. Most of the town’s life revolved around the factory. In Hazor Haglilit it was Vita Inc. producing pickled vegetables in cans.

During the “high” periods the bosses collected hundreds of millions of dollars which they refused to share with local workers who produced this wealth for them. But during the “down” periods the workers were the first to suffer the consequences. Competition from similar industries, cheap imports of the same product and rising costs of production decreased the profits of the Vita Hagalil bosses, and brought the company to the verge of bankruptcy.

Another Industrial enterprise, “Hazi Hinam” seized the opportunity and with financial aid from the government acquired the plant at a bargain price and profited from it for a while. After making a fortune for a few years, the management of Pri Hagalil (ex Vita Hagalil) decided on reorganization, code word for laying off workers. Once again Hazor workers had to pay the price for capitalism striving to make maximum profits.

During November 2011, 100 workers of Pri Hagalil received pink slips. One of the workers, 53 years old, was summoned for a hearing before being laid off. He said “I am shocked, I don’t know what I am going to do. I have worked for Pri Hagalil for 30 years, I have seven children but they told me they would leave Hazor, there is no future for them here.”

Solidarity is Crucial

Upon being fired, the workers of Pri Haglil went on a wildcat strike picketing the plant’s gate. The workers realized that without solidarity with the fired workers they are next in line. The bosses of Pri Hagalil had already declared their intentions to move the Plant to Naharia (30 miles away) where operating costs and local taxes are lower.

A retired worker of Pri Hagalil summed up the situation: “Every time new bosses arrive to “salvage” Pri Hagalil, they get financial support from the state, and draw enormous salaries [for themselves]. After a while they start the layoff process until the government shows up again with financial support which, once again, ends up in their pockets.”

All workers in historic Palestine, Hebrews and Arabs alike, should learn from the case of Hazor Haglilit. Capitalism is a ruthless, vicious economic system developed by the bosses for their sake. We in PLP support all Pri Hagalil workers’ demands. But even if there are victories, they can be reversed at any time by the courts, the Knesset (Israeli Parliament) and the other bosses’ state organs. It is only a question of time before they shut the plant, moving it to Naharia where they can extract higher profits.

The bosses treat the workers like the pickled cans they produce: Open them, use them and throw them away. Only in a communist society producing for need rather than for profit will all workers have humanity. Under communism everybody would contribute according to commitment and the total product would be divided based on need.

Workers need to build the revolutionary communist PLP to put an end to the capitalist system  — a dictatorship of the bosses — and build communism — the dictatorship of the workers to serve their needs.

PARIS, December 29 — Unemployment in November hit new record levels in France, and the bosses’ government and the union misleaders agree: shift the burden of the crisis onto the backs of the working class by putting workers on short time, cutting their income, in order to help maintain the bosses’ profits.

Pôle emploi, the unemployment office, reports an “official” jobless rate of 10.1% — 2,844,800 jobless in an active population of 28,269,000 — a level of unemployment unseen in the past 12 years. However, the real rate rose to 17.1%.

The 1,400,000 persons working part-time but actively seeking full-time work raises the rate to 15.0%. An additional 589,600 workers on the unemployment rolls were sick, in job training or had a government-subsidized job so were not counted in the “official” rate because they were not obliged to actively look for work. This ups the real unemployment rate to 17.1%.

All this hits black and Arab immigrant workers from sub-Saharan and North Africa, and their children, particularly hard (see box). Because of racist discrimination, they are already at the lower end of the jobs and income level and now are being driven deeper into poverty.

On December 27, the Minister for Labor said that a January 18 summit on jobs “will make it possible … to put forward quick-action solutions to limit the effects of the economic crisis as much as possible.” He notably favored making it easier for companies to put workers on short time. French President Nicolas Sarkozy will preside over the labor-management summit.

On December 27, France’s largest trade union confederation, the CGT, said it will propose to the summit “the elimination of untaxed overtime hours; reinforced checks on financial aid granted to companies, with a firm commitment to maintaining jobs; and the establishment of a mechanism to avoid layoffs by working short time.”

Thus, the CGT is trying to help the capitalists manage the recession and shift the crisis onto the workers. It’s trying to patch up the rotten capitalist system instead of pointing workers towards revolutionary change.

The CGT is also calling for nation-wide demonstrations on January 18, demanding more jobs, more purchasing power for all, and a united struggle against the government’s austerity policies. Although these reformist demands may sound positive, the demonstrations (as in the past) will probably prove to be little more than an opportunity for workers to blow off steam, especially since the CGT has carefully avoided calling for strikes to back up the demands.

France’s second-largest union confederation, the CFDT (more conservative than the CGT) will advance four points at the summit: (1) working short time to avoid layoffs; (2) more access to unemployment benefits for temporary workers; (3) state action to maintain jobs for youth; and (4) hiring 2,000 more workers at the unemployment agency, Pôle emploi, to deal with the expected increase in unemployment!

The CFDT is not even organizing workers to demonstrate behind these demands, much less go on strike. In other words, it’s begging the bosses to make a symbolic gesture, a sure-fire recipe for disaster. Capitalism is based on the bosses netting maximum profits, making it impossible for the bosses to show pity, even if they wanted to.

This summit will amount to nothing more than a showy photo-op for the government in the run-up to the April 22 presidential elections. Workers are wasting their time if they look to the bosses, the government or the union leaders for solutions. The initiative for action will have to come from the rank and file.

The upshot is that the government and the union leaders are working together to persuade the bosses to put workers on short time instead of laying them off. They’re aiming to avoid the kind of social unrest resulting from mass unemployment. But this is no solution, even in terms of capitalism.

The government will receive less revenue from income and corporate taxes. Already, it’s increasing taxes on natural gas, food and home improvements. Lower incomes and higher taxes will force workers to reduce their expenses even more, plunging France deeper into an economic depression.

Ultimately, the bosses and their government can only look to imperialist adventures to exit the crisis. French participation in the wars in Libya and Afghanistan is no accident — the French ruling class is honing the war readiness of the French army.

The capitalist system has plunged this country into a vicious circle in which austerity begets economic stagnation and unemployment, which in turn lead to more draconian austerity measures. For the working class here — as for workers worldwide — the only solution is to smash capitalist exploitation through communist revolution.

Racist Unemployment Hits Black and Arab Workers

According to an Oct. 19, 2010 government report entitled “Trajectoire et Origines,” all else being equal, the unemployment rate among immigrants from Sub-Saharan (mostly black) and North Africa (mostly Arab) is over twice that of people born to French parents. The unemployment rate among children of black or Arab immigrants is 1.8 to 2 times higher.

The report revealed that almost 25% of black immigrants and 19% of Algerian immigrants had been unjustly turned down for a job within the previous five years, as had 12% of the children of black or North African immigrants.

This racist discrimination means immigrants from sub-Saharan Africa and Algeria earn 12%-13% less than people born to French parents.

The study showed that there was no significant difference in unemployment or income levels between European immigrants and people born to French parents.