Oil prices fuel slump
Socialist Press1980 1980-01-09Read it in the scan (PDF), scan page 4 →
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Another price rise that sent capit alist stomachs sinking has been the rise in OPEC oil prices to an average $26 per barrel from January 1.
The Organisation for Economic Development and Cooperation forecast that this increase would produce a sharp deterioration in the already ailing world 1055 economy-driving up i nflation unemployment and ba lance of payments deficits.
Growth
Economic growth in the OECD countries in 1980 is expected to be only 10% of the average achieved in 1979: and within this average figure both Britain and the USA face an actual economic decline of 1.5 On the up and up-oil prices and 2% respectively during 1980.
But the prospect facing the underdeveloped countries that depend upon imported oil is even more horrific. The latest OPEC increases will add $8 billion to their total oil billon top of 925. billion in increased oil bills during 1979.
This amounts to 12% of the total exports of the underdeveloped countries.
It means ruin for these economies-and a rapid worsening of the plight of the working class and peasantry in the underdeveloped nations, which will be expected to carry the brunt of the crisis.
Carry costs
But the OECD is insistent that workers in the advanced capitalist countries must also be forced to carry a share of the costs.
Higher oil prices must on no account be compensated for by wage increases, it warns.
So if the capitalists have their own way, the prospect facing workers throughout the world in 1980 is one of decay, stagnation and destruction of the forces of production, mass unemployment lup from 17m to 20m in the OECD countries) and plunging living standards.
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mittee to assist and vet the TUC's •overseas