Global Independent Analytics
Danny Haiphong
Danny Haiphong

Location: USA

Specialization: War, Racism, Capitalist exploitation, Civil rights

US Capitalism Cannot Revive a New Deal for the Ongoing Crisis and Why It Matters

As US capitalism continues to destroy the lives of workers everywhere, it has exacerbated the inability of the system to absorb the fruits of capitalist production.

GIA analyst Max Schindler wrote a piece in recent weeks on the significance of the Bernie Sanders campaign. The article concludes that the Sanders campaign may be just what the doctor ordered for capitalism. According to Schindler, Sanders' promise to reform Wall Street and institute universal healthcare in the US will stabilize free markets and make capitalism more competitive. This argument accurately portrays what Sanders would hope to do as President. However, the subjective will of Sanders is ultimately subordinate to the objective conditions and developments of capitalism at its current stage.

The difference between the rhetoric and reality of the Bernie Sanders campaign is best analyzed from a Marxist perspective. Marxists analyze society with the method of dialectical materialism. Dialectical materialism is the philosophy that the material conditions of a concrete historical epoch are determined by the struggle between opposing forces. These forces are constantly in motion and dependent upon the political economy of society. The formation of ideology is thus dictated by the conditions of society. So to accurately assess whether the Sanders campaign would save capitalism, the present stage of capitalism must be analyzed and considered. The proposals of the Sanders campaign must be applied to the actually existing conditions of this period of the crisis.

In the mid 20th century, US capitalism experienced its most prosperous period. Capitalist prosperity was achieved through the rapid expansion of US military and economic influence all over the world. The center of capitalism shifted from Europe to the US as European capitalism relinquished its colonies and pegged its economy to the US dollar. Capitalism's profitability allowed working class struggles from the Depression era to win important concessions from capital. Reforms such as the right to unionize, social security, and federal investment in jobs and housing raised the standard of living for millions of workers. These concessions were born from the struggle between the working class and capitalist exploitation. 

Such prosperity doesn't exist in this period of US capitalism. The capitalist crisis that currently plagues the US is markedly different from prior crises. The main difference lie in the decline in the rate of profit. Since the late 1970's, the rate of profit has persistently fallen or stagnated. This decline was precipitated by the rapid development of capitalism's productive forces. As US capitalism monopolized its domination, it also produced the seeds of permanent crisis.

The increase in US capitalism's productive forces led to a rapid development of advanced, but costly, technology. US imperialism's growth allowed its multinational corporations and financial institutions to penetrate much of the world market. Capitalist crises of past historical moments generally occurred when the productive forces of the system outstripped the ability of labor to absorb the flood of commodities onto the world market. This led to periodic reductions in production, layoffs, and increased hardships for the working class. The current crisis possesses each of these characteristics except that this time advances in technology have permanently replaced a large section of capitalism's source of profit: labor.

It is for this reason that the rate of profit remains in descent. US capitalism has waged an all-out war on the working class to make up for stagnation. Wars of destabilization against Iraq, Libya, Syria, and throughout the non-aligned world have torn whole regions apart to expand US capitalism's speculative tentacles into sovereign territory. Austerity, privatization, and the persistent driving down of wages and wealth in the US and Europe has been driven by the condition of permanent crisis and overproduction. As US capitalism continues to destroy the lives of workers everywhere, it has exacerbated the inability of the system to absorb the fruits of capitalist production.

Economists and scholars have determined that multiple years of zero job growth, rising global levels of unemployment, and the ever increasing concentration of wealth is capitalism's new normal. A New Deal under these conditions seems unlikely at best and delusional at worst. Bernie Sanders, even if elected, would be forced to deal with the realities of US capitalism. The ruling class has already found his campaign enough of a threat to suppress it in the media. Even the Chamber of Commerce took a swipe at Bernie Sanders for his use of the word socialism. 

The Chamber of Commerce rant against socialism is a stark example of how the accumulation of capitalist profit is now dependent upon the fiercest, most persistent forms of exploitation ever known in the system's history. None of them can be rolled back by the capitalist system itself. The gravediggers of the system must be the ones to destroy it. The frustrations of workers and oppressed people have found expression in the 2016 elections through Bernie Sanders and Donald Trump. What is needed now more than ever is a genuine working class movement that struggles against imperialist war, state repression, and super-exploitation independently of the two-party trap. The goal shouldn't be to save capitalism, but to destroy it and institute the beginnings of a socialist future.

Related ARTICLES

NO MATTER WHAT, THE ESTABLISHMENT WILL HAVE THEIR CONTROLLED CANDIDATES IN BOTH MAJOR PARTIES.

NO MATTER WHAT, THE ESTABLISHMENT WILL HAVE THEIR CONTROLLED CANDIDATES IN BOTH MAJOR PARTIES.

The problem for the establishment this year is that there is not one, but two anti-establishment candidates in the race: one in each party.

18 April 2016

by Chuck Baldwin

Why would AIPAC dump Trump?

Why would AIPAC dump Trump?

It is possible that AIPAC was worried that Trump wouldn’t be pro-Israel enough, after last week’s gaffe when Trump said he would be “neutral” between Israel and the Palestinians.

08 April 2016

by Max J. Schindler

POPULAR ARTICLES

Not Found

OPINION

Vladimir Golstein

Vladimir Golstein

The Danderous Acceptance of Donald Trump

James N. Green

James N. Green

Politics in Brazil: Fasten Your Seat Belts!

Barbara H. Peterson

Barbara H. Peterson

Health officials confirm spread of Zika virus through sexual contact in Texas, first in US

Danny Haiphong

Danny Haiphong

WHY IS OTTO(SUPER)MAN ERDOGAN LOSING HIS CHARISMA?

Miray Aslan

Miray Aslan

How relations between Saudi Arabia and Iran reached a breaking point

Navid Nasr

Navid Nasr

How relations between Saudi Arabia and Iran reached a breaking point

Writers

chief editor

Joshua Tartakovsky

Analysis should serve as a method to better understand our world, not to obscure it.

Materials: 42

Specialization: Israel and the Middle East, US politics

Materials: 7

Specialization: Balkans, NATO and EU policies, Strategic communications

Materials: 3

Specialization: Foreign politics, Immigration, Human rights.

Materials: 2

Specialization: Political Science, Social Anthropology

Materials: 3

Specialization: Eastern Europe

Materials: 14

Specialization: Industrial Safety, Corporations

Materials: 12

Specialization: Eastern Europe, Labor movement

Materials: 3

Specialization: American history, way of life, and principles

Danielle Ryan

Ireland

Materials: 10

Specialization: US foreign policy, US-Russia relations and media bias

Materials: 20

Specialization: War, Racism, Capitalist exploitation, Civil rights

Materials: 8

Specialization: Modern Japanese History, Modern Chinese History, Military History, History of Counterinsurgency, History of Disobedience, Dynamics of Atrocities in Wartime

Dovid Katz

Lithuania

Materials: 3

Specialization: Holocaust Revisionism and Geopolitics; East European Far Right & Human Rights; Yiddish Studies & Litvak Culture

Materials: 20

Specialization: History, Catalunya, Spain, Geopolitics, Nationalism in Europe, Islamization, Immigration

Materials: 5

Materials: 3

Specialization: migration, international relations

Materials: 1

Specialization: Syria, US Foreign policy and strategies, BRICS/SCO

Materials: 19

Specialization: Balkans, Yugoslavia

Materials: 10

Specialization: Jihadist Groups, Islamic Terrorism, Global Security

Materials: 4

Specialization: Geopolitics

Materials: 4

Specialization: Media and government relations

Materials: 2

Specialization: Latin America, Brazil

Jay Watts

Canada

Materials: 2

Specialization: History, Marxism-Leninism, Imperialism, Anti-imperialism.

Materials: 2

Specialization: International Relations, Sociology, Geostrategy

Materials: 1

Specialization: civil rights

Lionel Baland

Belgium

Materials: 22

Specialization: Euroscepticism, Patriotic parties of Europe

Maram Susli

Australia

Materials: 3

Specialization: Geopolitics

Materials: 2

Specialization: Civil rights, Racism, US politics

Materials: 1

Specialization: geopolitics, economics

Max J. Schindler

Palestine-Israel

Materials: 9

Specialization: Politics

Miray Aslan

Turkey

Materials: 12

Specialization: Media, Politics

Materials: 5

Specialization: Politics, International relations

Navid Nasr

Croatia

Materials: 13

Specialization: Global security, Politics

Materials: 9

Specialization: Development of European Union, Non-governmental organizations, Politics and economics in Baltic States

Materials: 9

Specialization: Greece, Crisis of the US hegemony; Israel / Occupied Palestine, Oppression of Black people in the US

Materials: 4

Specialization: geopolitics, Russia, USSR

Pedro Marin

Brazil

Materials: 17

Specialization: Latin America, Ukraine, North Korea

Materials: 13

Specialization: Sustainable development, International relations, Comparative European politics, European integration, Eastern European politics and EU-Russia relations

Materials: 8

Specialization: Politics

Materials: 16

Specialization: Counterterrorist Finance

Seyit Aldogan

Greece

Materials: 3

Specialization: ISIS, Middle East, Globalization, Migrant crisis

Materials: 1

Specialization: Head of "Srebrenica Historical Project"

Materials: 3

Specialization: Economy, Social politics

Stevan Gajic

Serbia

Materials: 1

Specialization: Full time researcher at the Institute for European Studies

Materials: 5

Specialization: Geopolitics, Geoeconomics

Materials: 2

Specialization: Civil rights

Tobias Nase

Germany

Materials: 8

Specialization: Syria, US Foreign policy, Ukraine

Valerijus Simulik

Lithuania

Materials: 2

Specialization: Politics and economics in Baltic States, education and science, non - governmental organizations, globalization and EU

Van Gelis

Greece

Materials: 17

Specialization: Middle East

Materials: 1

Specialization: Kosovo, Serbia, Belgrad bombing

Materials: 5

Specialization: international relations, Russia

toTop