For 16 days, the world waited with bated breath as the US government was shut down and teetered on the brink of default. At the eleventh hour, a deal was rammed through both the Senate and the House and signed by Obama, thus averting the immediate crisis. What is the meaning of all this? What are the ramifications for American politics and the capitalist system itself?

As explained in the latest Socialist Appeal (US) editorial, Ruling Class Divisions Deepen, the US government shutdown over parts of the federal budget and Republican opposition to “Obamacare” is in the final analysis, a reflection of the insoluble contradictions of capitalism. Due to our readers’ keen interest in what is happening in the US, we are expanding our explanation and analysis of this ongoing situation.

The worldwide crisis of capitalism is leading to a deep questioning of the structures, institutions, politicians, and parties of bourgeois society. From Greece to Italy, Brazil to Turkey, Egypt to Iran, the consciousness of the masses is undergoing a profound transformation. This is not a linear process, and is not automatically and directly reflected in all countries at the same time.

“It sounds good on paper, but socialism will never work, because if everybody gets everything they need whether they work or not, then there is no incentive to work at all!” This is one of the most typical and caricatured arguments against socialism.

The bourgeoisie is not entirely blind. There are layers of the ruling class that can, on occasion, come to similar conclusions as Marxists. The benefit of a birds’ eye view of the capitalist system allows them to potentially have a more expansive view of the system as a whole—its corruption, its inequality, and its senility.

On July 18, the long–economically depressed city of Detroit officially declared its intention to file for bankruptcy. The bankruptcy is the largest ever for a US city, with $18 to 20 billion in debt. It is also the largest US city to ever go bankrupt, despite the disastrous collapse in the population over the last 30 years.

In one country after another, crisis, protests, war, revolution, and counterrevolution are raging. Here in the United States, however, it may seem to some that “nothing is happening.” But in reality, nothing could be further from the truth. Slowly but surely—though not linearly—the economic, political, social, and psychological tensions continue to build.

As Marxists, we welcome and fight for any increase in the wages of workers. A gain for one layer of the working class is a gain for all, and there are few layers of the American working class more desperate for such a gain than retail workers. The 2010 average retail worker’s hourly wage was a wretched $10.09, adding up to a $20,990 yearly income. However a four-person family in DC requires a staggering $88,615 every year, a clearly unattainable amount of money for parents working the most common job in America.

Fast-food workers in more than 60 US cities have embarked on a strike, in the biggest food industry walkouts ever. The workers demand a pay rise to $15 an hour, double the rate for many employees at fast-food chains. Here we publish a leaflet written by the comrades in the Workers International Leagueto be distributed across the United States.

The case of Trayvon Martin has ripped up the deep wounds of Racism in the USA. Here we provide a leaflet written and distributed by the American Marxists of Workers International League.

Minneapolis-St. Paul, St. Louis, and Madison, but also from Portland, Dallas, NY, NJ, Boston, Italy/North Carolina, met in Minneapolis on the weekend of June 29 and 30 for the first-ever Midwest Regional School. The presence of so many comrades from other regions, including a comrade from the Italian section of the IMT, Falce Martello, was a huge boost and made the weekend that much more electric.

“Billions racked up in public debt to plug budget holes, pay overdue bills, and put money into its mismanaged pension funds... this has resulted in decrepit commuter trains and buses, thousands of unsound bridges, 200 hazardous dams and one of the most inequitable public school systems... Retirees may lose their pensions as the funds dwindle, low-income and disabled people may lose their health care as costs escalate...”

State-funded schooling is seen as a pillar of so-called Western Democracy, educating all children regardless of race or income to create a smarter and stronger society. However, under capitalism, genuine equality in education is impossible, so long as a small minority can accumulate private property while others have to work just to survive. The Founding Fathers envisioned a system of common schooling where all students would learn the same core of reading and writing, as well as how to be good citizens. But the logic of private capital accumulation will never allow this.

The recent attacks in Colorado, Connecticut, Boston, and across the country have shocked everyone. As has been previously explained in the pages of Socialist Appeal, these repeated incidents of violence signify the decay of American capitalism. The decline of capitalism offers no future for today’s youth, only distractions, desperation, and escapism. High unemployment, debt, lack of health care facilities, alienation, and a widespread feeling of insecurity is enough to push some over the edge. Only by changing society to one which will give everyone hope of a better future, only by engaging people in a way that they will want to live their lives rather than escape from them, can we put

Ever since the birth of the United States of America, the slogan of the the right to life, liberty, and the pursuit of happiness as proclaimed in the Declaration of Independence, has been an integral part of the foundation of capitalism.