Obama elected.

The election of Barak Obama is seen by most African Americans, especially older African Americans who remember segregation and Jim Crowe, as a major development. It is also a positive event in the minds of most youth who see in his election proof that America is no longer so racist as becoming more progressive. And along with this for a large portion of the population it is just such a relief to be rid of the hated Bush/Cheyney regime.

But there is no panic in the halls and journals and think tanks of capitalism. The Wall Street Journal editorial has as its opening sentence: "Hearty congratulations to President elect Barak Obama."It then goes on to reassure its readers not to worry writing: "We have had in recent years two black secretaries of state, black CEO's of our biggest corporations, black governors and generals - and now we will have a president."

US capitalism will use the colour of Obama's skin for its own ends. It will claim to the world that Obama's colour proves that it is not racist and use this to try to recover from the collapse in its credibility and respect endured under Bush. At home it will say that Obama's election proves race is no barrier and use this to condemn the black unemployed and the lower pay and benefits suffered by black workers, claiming these are their own fault.

But Obama's election does not prove that the US is no longer racist. Incarceration rates for black men are seven to eight times that for white men and black family income is only between 60% and 70% of white family income. The USA is still a racist society.

Obama did not take up these issues in his campaign. He preached the message of so-called unity and we would all solve out problems and the present crisis together. But we are not in this together. People like Treasury Secretary Paulson come out of the looting of the past ten years with $800 million. The richest 400 people in the USA looted $670 billion out of the economy under Bush. But the income of the majority, that is the working class, black and white, fell.

Obama is already lining up top capitalist economists such as Volker former head of the federal reserve, whom the Wall Street journal calls an "icon of the right" and other capitalist advisers for his regime. He has made it clear that he intends to solve the country's problems within the capitalist system. This means the working class will have to pay. If as is likely the financial crisis gives way to a deep recession he may have to bring in some policies such as were adopted by FDR. But he will defend capitalism's ownership and control over the economy and as a result the working class will pay the price of the crisis.

Obama's election is no alternative to taking up the struggle against foreclosures, evictions and to defend jobs, wages and benefits. It is no alternative to building "Hands off our Homes" committees in the neighbourhoods and "Hands off our Jobs/Wages/Benefits" committees in the workplaces and linking these in direct action struggle and in the building of a mass workers party.

Sean.