Amerikan financial leaders were taken by surprise with the recent
financial meltdown in Amerika and around the world. Even those who
predicted the credit crisis did not expect the far reaching
consequences. In fact on October 23, former Federal Reserve Chair Alan
Greenspan told congress he was “shocked” at the situation and admitted
that capitalism was not working as well as he thought it would.
Greenspan went so far as to say he was “partially wrong” to think the
free market could regulate itself. Greenspan was the chair of the
Federal Reserve for over 18 years.
In reality the capitalists know perfectly well that the free market does
not work. The regulation of financial markets (or any government
regulation) contradicts the fundamental principals of free market
capitalism, but they are happy to regulate when it works in their
financial interests. Some people are complaining that the government is
introducing “socialist” practices with this regulation. But the
capitalist government of Amerika knows very well what it’s doing - it is
preserving capitalism, not promoting socialism. The inevitable crises of
capitalism expose weaknesses in the system. To preserve that system, the
capitalists need to shore up the economy. If that requires regulation,
they will have no problem doing it.
Marx taught us a couple musts of a capitalist economy: capital must
circulate and capital must accumulate. These two musts conflict with
each other. Accumulation led to imperialism and the limits that
imperialism put on circulation led to the crises of the 1930s in the
capitalist world.
John Keynes represented the path to saving capitalism during the Great
Depression. A path that John McCain and Joe the plumber would call
socialism today, but a path that was developed by Keynes and implemented
by the Roosevelt administration that was explicitly in opposition to
socialism, which existed at the time in the Soviet Union.
Marx did predict this crisis - not directly because he could not know
our specific conditions today. But to the extent that he correctly
predicted that capitalism will always face crises, Marx was once again
right about capitalism. In basic terms, Marx said that capitalism is not
rational and so the capitalists are going to overproduce as a part of
competition because they can not know the exact size of the market, nor
can they rationally apportion that market to the producers.
Lenin expanded on Marx’s theories explaining that imperialism is the
highest stage of capitalism. One of the definitive characteristics of
imperialism described by Lenin was the rise of finance capital. Like all
capital, finance capital could not just sit still. So markets were
created that didn’t actually sell material goods but sold money itself
or promises of money in various forms. Not only was this the haven for
the imperialists with ever-concentrating capital, but increasingly, the
oppressor nation became involved in these markets as ways of getting
their share of global super-profits, while helping the imperialists
manage these massive economic games.
In the 1930s, there was anti-capitalist pressure from a socialist Soviet
Union that was expanding its economy at record rates while the
capitalist world crumbled. Meanwhile fascism exerted its own pressures
on the future of capitalism in Europe unleashing unbridled violence to
advance their own economic prosperity. In response, the idea that
government was responsible for a nation’s economic welfare and had the
right to interfere in economics became prominent among the bourgeoisie
for the first time.
The success of the New Deal was built on shattered post-WWII Europe
and Japan, which the united $tates could use as an outlet for its own
expanding production. Without these consumer nations, an army of people
ready to work at home and new access to labor and resources of dozens of
former European colonies, the New Deal policies would not have succeeded
as they did in bringing a thriving u$-led capitalism to life.
Compared to the New Deal days, the u$ economy may be too top heavy
this time. With most amerikans working in finance, law enforcement,
state bureaucracies, advertisement/sales and other service industries,
we have a country of parasites. There is no surplus value and little
surplus population to fall back on. And we’ll probably see a fascist
revolution in this country before we see large numbers of amerikans
taking up public works jobs that they currently force on Mexicans and
other oppressed peoples.
Today the united $tates is no longer a rising economy, it is at the top
and it is top heavy. With the former socialist countries having been
incorporated back into the capitalist economy in the later decades of
the 20th century, there are no new markets to break into. And with a
large population that does not produce close to enough to sustain
itself, being cut off from Third World labor and resources would be
disastrous for the u$ economy.
While Keynes held that government intervention was necessary to keep a
capitalist economy expanding, he did not recognize the limits on
capitalist expansion recognized by Marx and Lenin. These limits make it
harder and harder for capitalism to recover with time as accumulation
becomes more extreme. Without imperialist war and massive loss of life,
this accumulation remained a barrier to recovering from the Great
Depression.
The Keynesians, increasingly the majority of capitalists during this
economic crisis, say that the only way to stop the irrational banks is
regulation - capitalism can not regulate itself because of the drive for
profit, and the lack of information about competitors. We must
distinguish this system of capitalism from socialism, which is
characterized by nationalization of industry and finance, but more
importantly, is controlled by a dictatorship of the proletariat working
in the interests of the vast majority of the people. Any nationalization
done under capitalism is controlled by a dictatorship of the bourgeoisie
working in the interests of the few. In China, after Mao died, the
bourgeoisie took power and began running the government for the profit
of a few. They left industries nationalized and this fooled some people
into thinking China was still socialist. But as the recent actions of
the Amerikan government demonstrate, nationalization is not synonymous
with socialism.
Although we should not confuse capitalist regulation with socialism, it
is interesting to note that there are reports of a big upsurge in sales
of Karl Marx’s book Capital, as well as visits to his grave as people
around the world seek an explanation for the financial crisis. While
capitalism is making big profits for the imperialists and their labor
aristocrats, those people benefiting have little interest in questioning
the system. But in a time of crises some people are apparently inspired
to think a little harder about what capitalism means. We don’t
anticipate this leading to a global upsurge in support for communism.
Even with the current economic crisis, the workers in imperialist
countries are still benefiting from the exploitation of the Third World.
And so their economic interests are still tied up with capitalism.
True to the interests of the Amerikan citizens, what is considered
progressive radio in the u$ can’t stop crying about mortgages, car
payments and kids having to go to community college. They completely
ignore that most people in the world have never owned a car, a house or
had a chance to get a college education. Joe the plumber, McCain’s
example of anti-Obama working people in Amerika, did a press event where
he announced he was scared of Obama trying to take the country to
socialism. Joe the plumber is in the richest 3.89% globally, that’s why
he’s scared of wealth redistribution. When things get really bad, Joe
the plumber is going to be fighting for national socialism so that at
least he doesn’t have to share with other nations.
For those labor aristocrats who want a more rational economic system, we
encourage them to study communism. But we won’t lie to them and tell
them that fighting for communism is fighting for their economic
interests. This will just foster reactionary nationalism, or fascism.
And it is times of economic crisis when we need to be most wary of
fascist upsurges in countries where the workers are benefiting from the
exploitation of oppressed nations.
In general, times of capitalist crisis are times of opportunity for the
international proletariat. While it is clear that it will take a lot
more than the latest crisis to move the imperialist country citizens
into the ranks of the proletariat and form a mass base for revolution,
the revolutionary movements in Third World countries can take advantage
of imperialist weaknesses. The relative strength of imperialism at this
point in time may pull it through, but certainly the current crisis may
allow our comrades in the Third World to gain some ground in the fight
for liberation. The imperialists are doing what they can to shore up
smaller countries hit hardest by economic collapse by providing IMF
loans (Iceland, Hungary, Ukraine). But these loans are provided
strategically and will not prevent the suffering and exploitation of
Third World people, which existed before this economic crisis and will
continue after it until the people rise up and put an end to this system
of imperialism.
Notes: See MIM Theory 1 and 10 for further elaboration on why the
Amerikan citizens are part of the labor aristocracy and not the
proletariat.