The Institute for Supply Management's monthly manufacturing index - a
closely watched gauge of US industrial activity - slipped to 45.4 in April
from 46.2 the previous month. (BBC,
http://news.bbc.co.uk/1/hi/business/2993359.stm) When the index is
below 50, it indicates contraction. Now US manufacturing is the weakest it
has been in a year and a half.
Joel Naroff, a US economist at Naroff Economic Advisors, said: "It's
awfully tough to create any jobs in the economy." 525,000 workers have
been cut in the last three months. 8.8 million workers are now unemployed
in the US. (BBC,
http://news.bbc.co.uk/1/hi/business/2996197.stm)
Rally speakers reminded the marchers that government budgets, dried up by
falling tax revenues and diversion of money into war, are crippling social
systems like education. For example, The State of California requires exit
exams of high school graduates. Any student who fails is denied a diploma.
So many flunked the exam this year, 38%, that the denial would create a
disaster. The State is considering dumbing down the test. (SF
Chronicle, "Exit exam too hard - reprieve likely", 2 May
2003>
The real engine of the US economy has been the housing bubble. Homeowners
have took $320 billion cash out of their houses in $2.5 trillion of
remortgaging. But only 39% of workers own their homes free and clear. The
rest are carrying debt in excess of 80% of the value of their homes.
(Jonathan Laing, "The Debt Bomb," Barron's, January 20,
2003)
Meanwhile, investment in industry in heading toward zero because of
already existing overcapacity. Giving the rich more to invest through tax
transfers won't encourage anyone when future profits seem dim. (The
Economic Report of the President, 2003)
But one class of production, war materials, is booming.
Lockheed Martin sells a quarter of U.S. arms exports. Since 1992, the U.S.
has exported more than $142 billion worth of weapons to other countries.
the U.S. supplied arms or tmilitary technology to more than 92% of the
conflicts underway in 1999. War profits fill Lockheed Martin's balance
sheet. According to the BBC ( Defense giants
boast strong demand ), Lockheeed Martin reported a jump in earning
during the first quarter of 2003, including a 57% surge in revenues at its
aeronautics division. The firm scored $11.3 billion in orders during from
January to March of 2003, making it worth $74.6 billion on its books.
"Lockheed's order book is bulging at record levels," the BBC
reported.
War solves the problem of excessive productive capacity and poor demand
by blowing up the product and giving the spoils of conquest to Bush's
friends.
The march to United Industries started.
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