Updated Jun 11, 2008

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The Drive for Profit Has Created an Economic Crisis

Big price increases are spreading beyond the enormous jumps in energy and food prices. ArcelorMittal, the world’s largest steelmaker, just announced another 20 per cent increase, coming on top of 40% increases at the beginning of the year. And Dow Chemical announced that it is sharply increasing prices on everything from plastics to commodity chemicals.

These lying thieves say their costs are rising. Maybe, but their profits are rising even faster. The steel industry has been running 10 per cent profit margins – profit margins so high, they are practically unheard of in a capital intensive industry. The steel companies are rolling in so much money, ArcelorMittal bought up 35 smaller steel companies in just the last year!

The steel industry is no exception. Dow Chemical made 3 billion dollars in profits – after taxes. Almost all the profits went right back to their stockholders through massive stock buy-backs.

Even when monster companies do have cost increases, they pass it on, and add twice as much on top. Every big company boosts their profits by gouging us, first as workers, and then as consumers.

The banks, financial and construction companies pushed up the price of housing into the stratosphere – in so doing, they set off a foreclosure crisis of historic proportions. The oil companies made gas so expensive, we can’t afford to drive our cars. The insurance and health care industry put a great deal of medical care out of our reach.

These same thieving companies continue to cut jobs, cut wages and speed up the pace of work. And with each cut, they raise profits still more. But even as their profits skyrocket, they are creating an economic crisis of such proportions that the collapse of 1929 will look like small change.

These greedy thieves cannot stop themselves – their never ending drive for still greater profits is driving the whole society right up to the abyss and over into it.

They cannot stop themselves. They need to be stopped.