- Inter-capitalist contradictions in the USA
Recently I wrote [1] – that there had been an exodus of major sections of the ruling class from Trump’s camp. In brief, the argument presented was that the main sections of the ruling class who have supported Trump included heavy industry and extractive industries – epitomised by the oil, gas, mining sectors. In contrast, the dominant section of the ruling class interests represented by the Democratic party are formed by the financial capitalists. But as Trump has failed to move out-shored American industry back to the USA, there has been a cooling between Trump and his industrial backers.
“The (Trump-ite) trade war has come at a cost. Tariffs imposed by the United States and retaliatory measures taken by aggrieved trading partners have shaved billions off the U.S. economy, according to a Federal Reserve paper. And a 2019 study by economists at the Fed, Princeton University and Columbia University showed that tariffs imposed additional burdens on American households, raising the cost of imports and curtailing exporters’ access to markets. For all that cost, there has been no improvement in Mr. Trump’s preferred indicator of economic dominance, the nation’s trade balance.” [2]
The Democratic Party has dived head-long into this opportunity. Recent overtures from the Democratic Party signal to sections of the heavy industrial capitalists, that they have no need to worry about the Democratic party leaders.
“In July, former Vice President Joseph R. Biden Jr. presented an economic strategy to “rebuild domestic manufacturing capacity,” restoring local supply chains from semiconductors to pharmaceuticals. In September he added a tax penalty to the plan, aimed at companies that move jobs to other countries, alongside a tax credit for businesses that bring them home. The proposals might have seemed like something from President Trump’s playbook.”[2]
This is a dramatic battle within the ruling class of the USA, but one that has enormous repercussions for the working peoples of the USA and the world. Meanwhile, events force most reasonable progressive observers to warn of a potential right-wing coup from a Trump-led counter-strike. [1, 3]
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[1] The Stakes Rise: Inter-Capitalist Warfare in the USA Ruling Class – Dumping Trump’, Marxism Leninism Currents Today; at https://ml-today.com/2020/07/24/the-stakes-rise-inter-capitalist-warfare-in-the-usa-ruling-class-dumping-trump/
[2] Eduardo Porter, “Trump, Biden and ‘Made in U.S.A.’: Same Refrain, Varying Notes;” New York Times, Sep 29, 2020; at: https://www.nytimes.com/2020/09/28/business/economy/biden-trump-made-in-usa.html
[3] Jeremy Brecher, “Social Self-Defense Against the Impending Trump Coup”; Berlin Left at: https://www.theleftberlin.com/post/social-self-defense-against-the-impending-trump-coup