“Cast aside illusions!” is the indispensable first step in grappling with  
crisis. An illusion is a false impression of reality. No problem can be solved  
that is not accurately described. Illusion prevents an accurate and objective 
 description of a problem. As our nation slips deeper into crisis, the main  
tactic of the ruling class has been to prevent the people from accurately  
describing the problem, offering them one illusion after another. 
 
The first and fundamental illusion is that the current crisis is within the  
system and caused by greed and mismanagement.  The reality is that this is  a 
crisis of the system. It is easier to accept a shallow and superficial  
illusion than to understand complex reality. However, the crisis is at such a  
point 
that revolutionaries must master the complex way the system works or they  
cannot describe the problem. 
 
A fundamental characteristic of the capitalist system is that competition  
between capitalists produces more commodities than the market can absorb. If  
there is a market for ten cars, then ten capitalists will produce ten cars 
each. 
 The ensuing battle for the market compels every capitalist to cut the cost 
of  production. Labor saving machinery, speed-up and wage cuts lower the cost 
of  production, but also lower the purchasing power of the working class, 
increasing  the glut of products on the market. The result is the periodic 
slowing 
down or  stopping of production until the surplus is purchased or destroyed.  
Then  the race for the market starts again.  This is crisis within the system. 
 
What is different today?  The capitalist system rests on the buying  and 
selling of labor power  — that is what creates value. In the struggle  for the 
market, new electronic productive equipment was developed that did not  simply 
make labor more efficient, it replaced it. As more and more capitalists  are 
forced to use robotics, jobs disappear and labor power becomes obsolete. As  a 
result more and more production is carried on with less and less labor.  
Inevitably more money flows into the hands of fewer and fewer capitalists while 
 the 
mass of the workers become poorer and poorer as their wages decline and jobs  
disappear. Finally the point is reached when the people of the world are too  
poor to consume what the world has produced.  Unsold products pile up,  
retailers cut orders, factories close down, and bills and mortgages are not  
paid. 
Banks do not dare lend money to businesses than might fail or to workers  who 
may become unemployed.  Without the grease of credit the gears of the  system 
grind to a halt. 
 
Conventional wisdom has it that since the drying up of the market caused  the 
depression, then all that is needed is to create a market. This, it is said,  
can be done by guaranteeing business loans and putting spending money in the  
hands of the people.  This was the essence of Roosevelt’s “New Deal.” 
 
It didn’t work. It took the destruction and gigantic market of World War II  
to again grease the gears and expand the market.  The Great Depression was  
the beginning of the final stage of the capitalist system. Today, the entire  
world is capitalist and there is nowhere to expand. The crisis within the 
system 
 becomes deadly as it is joined by the crisis created by new, labor-replacing 
 means of production that attack the very foundation of the system. The 
illusion  is we can spend our way out of the crisis. The reality is that this 
system, like  all those before it, is coming to an end. A new system of social 
control over  finance, production and distribution is already forming.  Will 
the 
new  system be shaped to the benefit of the billionaire ruling class or to the  
benefit of the mass of people? The question will be answered in our favor if  
millions of people become clear about the problem and their vision. They must 
 become socially active and impose a democratic economy that reflects a  
democratic political system. The first step is to cast aside illusion and  
grapple 
with this difficult and dangerous reality.
 
_http://www.peoplestribune.org/PT.2009.02/PT.2009.02.03.html_ 
(http://www.peoplestribune.org/PT.2009.02/PT.2009.02.03.html) 
 
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