It is only a matter of time before the US internet bubble is burst, investments collapse and consumption of the masses falls back because of a loss of confidence in the 'new economy'. The internet revolution is a great technical leap forward. But under capitalism, it is being exploited by more and more precious investment capital being thrown into this tiny sector of the economy at the expense of all the rest.
In this 10,000 word article Mick Brooks analyses in detail all the claims of the proponents of the "new economic paradigm" from a Marxist point of view and proves why this, far from being a 'new economy' in which the business cycle has been abolished, is something we have seen many times before in the history of capitalism.
On March 24th, after an accumulated fall of the Cyprus Stock Exchange of nearly 50% over a period of five months, angry investors decided to march on the Stock Exchange to try and force the prices up! Millions of working class families are investing their savings on the stock exchange in the belief that it can only go upwards. This article gives a glimpse of the social and political effects of a collapse in the stock exchange.