The 15th BRICS summit took place in South Africa August 22-24 to discuss the expansion of the group of countries, and to counter the influence of Western countries like the U.S., France and Britain on developing countries.

San José, CA – On Friday, May 19, Republicans walked out of debt ceiling negotiations with the Democrats. Presidential candidate Donald Trump followed with a no-compromise stance, saying the Republicans should hold out for “everything that they want.” More than a quarter of Democrat Senators who are opposed to the Republican cuts called on President Biden to overrule the debt ceiling using the 14th Amendment to the Constitution, which guarantees that the national debt shall be paid.

Interview with Professor of Economics Masao Suzuki

In 2023, there have been many announcements of layoffs by technology firms. This is a result of what the media calls post-COVID normalization. But this “normalization” has also shown that many technology companies that boomed during the pandemic were in fact overproducing and building new capacity too quickly, forcing them now to scale back. In the past ten days this slowdown in the technology industry spilled over into the banking system, triggered by the failure of Silicon Valley Bank, based in Santa Clara, California. Soon after the failure of SVB on Friday, March 10, regulators shut Signature Bank in New York. First Republic bank, headquartered in San Francisco, had to borrow $30 billion from other banks, under the direction of the Federal Reserve. The crisis even spilled overseas, as the troubled Swiss banking giant Credit Suisse was forced to sell itself to the even larger Swiss bank UBS. Fight Back! News sat down with Professor Suzuki to ask him about this crisis. Fight Back!: How is the failure of Silicon Valley Bank related the crisis unfolding in the technology industry?

San José, CA – After the collapse of Silicon Valley Bank, headquartered in the city of Santa Clara, just north of San José, the local news was full of interviews with technology entrepreneurs talking about the “importance to the community” to have all of the uninsured depositors get their money back. With the closing of Signature Bank in New York, which had large numbers of crypto-investment related depositors, over the weekend, federal regulators tried and failed to find buyers for the two banks. This made these two banks the biggest ever – with about $200 and $100 billion in deposits, respectively – to have to shut down.

Cracks appear in economy as government regulators shut down Silicon Valley bank

San José, CA – Cracks in economy began to show up as Silicon Valley Bank, based in Santa Clara, California, just north of San José, was shut down on Friday, March 10. The bank was the 18th largest bank in the United States, and mainly served high-tech startups, venture capitalists and wealthy individuals.

San José, CA – On Wednesday, March 1, food stamp benefits were cut for more than 30 million low-income Americans. The average loss will be about one-third of the monthly benefits. Hardest hit would be many seniors getting food stamps, who would lose more than 90% of their monthly benefit.

San José, CA – On Friday, November 4, the U.S. Department of Labor reported that the unemployment rate in October rose from 3.7% from 3.5% in September. The increase was even larger for Asian Americans and Latinos, who saw their unemployment rates rise by 0.4%, twice the overall rise.

Inflation for workers still at 40-year highs

San José, CA – Inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers or CPI-W has been rising this year at the fastest rate in 40 years. This high inflation continued in September, with prices measured by CPI-W up 8.5% over a year ago. Higher prices combined with fewer hours means that the purchasing power of average weekly earnings for workers fell 3.5% from a year earlier.

San José, CA – On Friday, October 7 the U.S. Department of Labor released their report on new jobs and the unemployment rate in September. According to the Department of Labor, there were 263,000 more jobs in September than in August. This is the weakest job report since December of 2020.

It is a fact of historical materialism that the development of the productive forces reduces the amount of labor required by production. As technology and techniques improve, the amount of work required to meet human needs is reduced. This should be a fact that liberates humanity from toil, freeing us to pursue our interests, hobbies, goals of self-development, and so on.

San José, CA – On July 29, the Bureau of Economic Analysis released their report on Gross Domestic Product for the second quarter of the year, April to June. GDP went down at a 0.9% annual rate. This followed a decline of 1.6% in GDP in the first three months of the year.

Continuing claims hits highest number since November 2021

San José, CA – On Thursday, July 21, the U.S. Department of Labor reported that the number of people collecting unemployment insurance benefits, increased by 51,000 for the week ending July 16. This brought the total number to 1,384,000, the highest since November 2021. New claims for unemployment insurance increased to 251,000, also the highest since November. The increase was only 7000 over the week before, but most economists had expected the number of new claims to fall.

Despite what bourgeois economists, the priests of property and profit, would have us believe, capitalism isn’t the eternal way of things. It had a beginning, and it will have an end. As we begin our discussion of political economy, let’s draw upon historical materialism to examine how capitalism arose.

San José, CA – Real earnings, or workers’ wages after adjusting for inflation, had their biggest drop in 40 years last month, as prices continued to rise faster than paychecks. Real average weekly earnings, which best reflect workers’ paychecks after adjusting for changes in wages, prices and hours worked, fell 1% in June of 2022 according to the U.S. Bureau of Labor Statistics. Over the last year, real average weekly earnings fell 3.9% as inflation outpaced pay raises and average weekly hours fell by almost an hour.

San José, CA – With Bitcoin now down 70% from its record price in April of 2021, businesses based on cryptocurrencies have started to fold. The latest victim was Celsius, a crypto “bank” which stopped withdrawals from its accounts on Sunday, June 12. Celsius had more than $20 billion in assets at its peak in August 2021, drawing investors with yields of more than 18%. But Celsius is looking more and more like a high-tech Ponzi scheme that only lasted as long as new investors kept buying in.

Working households struggle as wages don’t keep up

San José, CA – On Friday, June 10, the Bureau of Labor Statistics reported that prices for workers’ families, the so-called Consumer Price Index-Wage or CPI-W rose by 9.3% as compared to prices a year ago. This rate of inflation is near a 40-year high, only exceeded by the 9.4% increase in March. The last time that prices rose so quickly was in November of 1981.

San José, CA – On Monday, May 9, U.S. stock prices continued to fall, with the broadest index, the S&P 500, losing more than 3%. This is the biggest one-day drop in stock prices since the onset of COVID in the United States in early 2020. The S&P 500 has fallen 17% since hitting an all-time record high in late March. This is approaching the 20% drop that is labeled a “bear market.” Stock prices of high-tech companies have fallen even more, with the technology-heavy NASDAQ index already in bear market territory.

Biggest one-day drop since 2020

San José, CA – On Friday, April 22, U.S. stocks fell more than 2.5%, with the Dow Jones Industry Average, dropping almost 1000 points. This led to the third week of losses for U.S. stocks, as a combination of recession fears – based on slowing corporate sales and profits, combined with the reality of higher interest rates – influenced investors.

San José, CA – On Thursday, January 20, the U.S. Department of Labor reported that the number of new claims for unemployment insurance rose for the second week in row, to more than 280,000 for the week of January 10-15. This is up almost 40% from the beginning of January. While much of this may be caused by the spike in COVID-19, there have been other signs of economic weakness that started to show up in December.

On Thursday, January 20, the U.S. Department of Labor reported that the number of new claims for unemployment insurance rose for the second week in row, to more than 280,000 for the week of January 10-15. This is up almost 40% from the beginning of January. While much of this may be caused by the spike in COVID-19, there have been other signs of economic weakness that started to show up in December.