World Capitalist Crisis
THE recession is today's most discussed topic in the capitals of all advanced countries. The spurt after the 1969-70 slowdown proved to be brief and by 1973, signs of deterioration became unmistakably clear. On the top of sporadic bank failures have come" reports of an international airline like Pan Am, USA's largest, seeking a 10.2 million dollar subsidy every month if it was to continue operating its schedules. The stock markets of the bigger imperialist countries are in panic. During the last 20 months, the market value of common stocks listed on the New York Stock Exchange went down by nearly 300 billion dollars. The Dow Jones Industrial Average dropped 110 points in the last week of August while the Financial Times Industrial Index for the United Kingdom declined to levels below 200—for the first time in 16 years. British stock prices have gone down by more points in the last two years than during the Great Depression years of 1929-32.
With an increasing number of finance houses and banks facing insolvency, the situation is reminiscent of the Great Depression of 1929-34. No wonder bourgeois economists, politicians and financiers have begun to find analogy to those days of anguish and nightmare. Using the word ^recession' for the first time, a White House statement in November forecast worse to come.