The government’s decision to use taxpayers’ money to rescue Northern Rock shatters one of the myths of capitalism.

Pro-capitalists argue that investors bear all the “risk” of an enterprise, and are therefore justified in reaping the profits.

However the government’s decision shows that, if an important business does fail, the state will step in to bail out the investors, making a mockery of the notion of “risk”.

Benjamin Kindler, Hong Kong

http://socialistworker.co.uk/art.php?id=14070

WASHINGTON, Jan 22 (Reuters) - Even when faced with his lowest
approval ratings over the Iraq war, U.S. President George W. Bush had
always pointed proudly to what he considered his crowning
achievement — his stewardship of the economy.

But now, with oil prices near record highs, the mortgage market on
the verge of meltdown and the specter of recession looming, Bush is
seeing even that seemingly safe part of his frayed presidential
legacy slipping away.

Bush is scrambling to halt the economic slide and calm roiled world
financial markets with an economic stimulus package of up to $150
billion.

But even if that does the job, Bush will have a hard time salvaging
his place in history.

With one year left in office, he is bogged down in an unpopular
foreign war, his domestic agenda is stalled by an opposition-led
Congress and he is struggling for relevance as attention turns to the
battle to choose his successor.

“The way things are now, his legacy looks very grim,” said Terry
Madonna, a political scientist at Franklin and Marshall College in
Pennsylvania, who predicts Bush will ultimately rank in the bottom 25
percent of American presidents. “It’s hard to imagine him making a
significant comeback.”

(more)

http://www.alertnet.org/thenews/newsdesk/N22534901.htm

EDSA II ANNIVERSARY:
JOBLESSNESS, FAMILY INCOMES WORST

President Gloria Arroyo’s seven years in office has brought record
levels of joblessness as well as falling family incomes, according to
independent think-tank IBON Foundation.

According to IBON research head Sonny Africa, historical levels of
joblessness were registered under the Arroyo administration since 2001.
In 2007, there were 4.1 million jobless Filipinos and an annual average
unemployment rate of 10.8 percent. Although 2007 figures were a slight
improvement from 2006, the average annual unemployment rate of 11.3%
over the 2001-2007 period remains the worst such period recorded in the
country’s history, Africa said.

Moreover, most jobs created in 2007 were in domestic household help,
followed by the transport, storage and communication sector, wholesale
and retail trade, real estate, rental and business activities (which
include business process outsourcing) and construction. Africa pointed
out that in general, these are the lowest-paying and most insecure jobs
in the country. For example, household help would be lucky to earn
P3,000 to P3,500 a month, he said.

Since 2001 Filipinos’ incomes have also continued to fall throughout the
Arroyo administration. Figures from the 2006 Family Income and
Expenditure Survey show that average family income for all families in
real terms (at base year 2000) fell by P20,400 between 2000 and 2006.
For the poorest 10% of the country’s families, this meant a decline in
annual income to P23,000 in 2006 from P25,000 in 2000. Since incomes
were insufficient to meet their expenses, there was an annual debt of
P1,700 per household in 2006.

Inequality also remained high in 2006, as the richest 20% of the
country’s richest families account for nearly 53% of total family
income, while the poorest 20% share less than 5% of total family
incomes. (end)

IBON Foundation, Inc. is an independent development institution
established in 1978 that provides research, education, publications,
information work and advocacy support on socioeconomic issues.