Part Three. The Wisdom Of Protectionism. The Madness Of Free Trade

Posted on Monday, March 09 at 09:49 by Robin Mathews

Part Three.  The Wisdom of Protectionism.  The Madness of Free Trade.

You won’t read what follows in the most frank of published articles or the most progressive websites – especially if they come from the USA.  Why not?  Because a real “flattening” of political thought has been achieved in the last fifty – especially the last twenty – years.  The word “Socialism”, for instance, has been debased and scorned. It has been almost ruled out of conversation and publication except as a word of denigration.

Hugo Chavez wants to build twenty-first century Socialism, it’s true. “Western” theorists and governors absolutely refuse to deal with what that really means.  They won’t talk about it except by frontal ridicule.

They refuse to deal, therefore, with the stimulus to political and philosophical thought brought about by the philosopher Hegel ((1770-1831). That sounds complicated.  It isn’t.

Hegel introduced an idea that, developing, says social life, thought, human cultures – whatever – move (not ‘progress’) through time by the involvement of lively antagonisms.  And, over long periods, there isn’t a ‘winner’.  Rather the opposites cause a sort of coming-together, a synthesis, out of which new antagonisms arise and move on….

It doesn’t matter if that idea is ‘true” or not true.  Nor does it matter that Marx and Engels took up the idea to found ‘dialectical materialism’ upon – simply an idea that says everything happens in the historical world with forces, like classes, in antagonism.  (The two men are considered ‘millenialists’ because they believed the dialectic would end with ‘the dictatorship of the proletariat’, and its aftermath.)

What matters about ‘the Hegelian principle’ is that it lets everybody (whether philosophers or not) work from the assumption that there are different choices one can make in order to build societies, establish cultures, criticize existing power structures – and propose different ones. It kept alive an open-mindedness which has closed over the last decades – perhaps measured especially since the fall of the Berlin Wall.

Around that time, Charles, Prince of Wales, was quoted as saying – more wisely and prophetically than most would give him credit for – that the loss of the balance between East and West was probably not going to be a good thing.  If he had wanted to use philosophers’ language, Charles might have said that the loss of the ‘visible dialectic in political philosophy and social theory’ was not going to be a good thing.

He was right.  Western Capitalism seized on the event and ran with it.  The world was facing ‘the end of ideology’, ‘the end of history’ the beginning of a single world-view, the end of wars and  conflicts and differences because all the world accepts the Market Economy, the ‘Free Market’, and Capitalist Democracy.  The world will fall at the feet of the Western nations, it was said, and all will fall in love with Democracy – by which they meant Capitalist Democracy. 

What Western Capitalism (and those “end of…” theorists) failed to mention is that Capitalist Democracy is, in fact at present, a system which is dominated much more by Capitalist ideals than Democratic ones. And what almost no one says is that – in fact – two more opposite concepts don’t exist in the world than Capitalism and Democracy.

Capitalist ideas develop from the idea of (human) nature red in tooth and claw.  The propagandists of Capitalism deny that in after-dinner speeches.  But read any “financial” publication for a short time, and you’re told that “the market” is based upon “greed and fear”.  Nice, eh.

You’re told more.  Capitalism is based upon “competition”, by which is meant a process in which others in (whatever) field are overcome, if possible destroyed, the market monopolized, and wealth production for the few placed before all else – before all reasonable human needs and aspirations. That happens as a result of increasing concentrations of wealth and power in fewer and fewer hands. 

And when those concentrations in fewer and fewer hands unite the powerful in government and the powerful in the economy, the “democratic” restraints upon Capitalism disappear.  Then you get  the almost incredible criminality, social breakdown, and economic collapse visited upon the world (led largely) by the USA right now.

Democracy, plainly, believes in cooperation, in restraint of individual greed, in shared decision-making, and in power placed, through democratic election, in the hands of “representatives” of all the people whose task is to use that power for the good of the whole society. One of Democracy’s primary objectives is to diminish as much as possible fear and greed in the community.

Protectionism is a means by which countries attempt to assure their own economic viability so that the whole population can benefit.  (More about that farther on.)

A simple rule of history can’t be denied. The Capitalists who work to corner all possibility of wealth production into a few hands also work hard to get the cooperation of the men and women who have power in government. When they succeed and convince political power that the “interests” of the country require major policy formulation for and support of the aims of resident Capitalists, the country begins to narrow its Democracy in order to support “the few”.  It begins to give public wealth to the few and to assist in the exploitation of the general population on behalf of the few.

When such a country has increasing success in bringing its own population to accept that condition and in bringing other countries into subservience – then it is becoming an “imperialist” country.  It is building an empire for itself – in which, by definition, the subservient populations are oppressed in order to increase the wealth of the imperial power. 

In most cases, the people of the imperial power are permitted to share some of the wealth – and are convinced by endless propaganda that they share a great deal of it, and so there are rarely any effective anti-imperialists in an imperial country.  When they criticize, what they say – in short - usually comes down to a soft imperialist position. “We should be dominant.  We should be an imperial power.  But we should be a good, kind, gentle imperial power.”  Critics of imperialism within an imperialist country rarely say that the whole structure of dominance has to go.

The people in the imperial country are, simply, slightly more disguised victims than the people outside. But they are victims.  If you doubt that, look at the havoc being wreaked upon ordinary people in the USA right now (while the grossly immoral corporate few and the financial warlords battle to maintain their obscene luxury as something they “deserve”).

An imperial country and its second-string supporting dominant countries work to find the best way, peacefully, to get power over the economies of other countries. Inevitably, they come upon “Free Trade”.  As pointed out in a previous Part, “Free Trade” is a system of peaceful agreements and/or treaties whereby the dominance of dominant countries is legalized in the subservient countries. And, in many cases, the dominance is permitted to reach into the most serious policy-making areas of the subservient countries – to bring them to destitution, if that is the policy of the dominant. (It often is.)

It might be clear why “Protectionism” is a fundamentally necessary policy for countries that cannot be called ‘dominant’. Before looking at that case, however, one more Part must be written to show how so-called “international” institutions like the World Bank and the International Monetary Fund became extensions of U.S. (and other big power) policy and – in effect – extensions of U.S. Free Trade and “open market” policy, rather than international bodies seeking good, equally, for all people on the planet.

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  1. Mon Mar 09, 2009 7:31 pm
    Around that time, Charles, Prince of Wales, was quoted as saying more wisely and prophetically than most would give him credit for that the loss of the balance between East and West was probably not going to be a good thing. If he had wanted to use philosophers language, Charles might have said that the loss of the visible dialectic in political philosophy and social theory was not going to be a good thing.

    He was right. Western Capitalism seized on the event and ran with it. The world was facing the end of ideology, the end of history the beginning of a single world-view, the end of wars and conflicts and differences because all the world accepts the Market Economy, the Free Market, and Capitalist Democracy. The world will fall at the feet of the Western nations, it was said, and all will fall in love with Democracy by which they meant Capitalist Democracy.


    First of all, an outstanding contribution here, Robin. And while I "might" quibble with a point or two, I am certainly largely and fundamentally in agreement with it, of course.

    We are in another time when the mythology of capitalism and its claimed, by the capitalists and their supporting minions anyway, inextricable link with what has passed for democracy to here, begins to become threadbare obvious in its falseness, and an "idea" ruse propaganda media spoon fed to a but subserviently grateful population. This false claim only achieving plausibility, of course, in the "good greed times", as the last Great Depression collapse fades temporarily in the rearview mirror, much to the anxious relief of the masses. Having suffered enough, they leave it to another generation time to discover, warning them as my parents certainly did, that really this "good greed time" is but sandwiched in between the "fear failure times" that will invariably come again and again, and again, across the generations, for so long as capitalism shall live. (Capitalist greed, and control of the political and economic system, which resurges and strengthens itself in the good times, inevitably, sooner or later, comes to consume the purchasing power ability of the working masses to endlessly maintain "demand pull" upon the "greed driven economic system", and the circle unravels once more; the connection between production and consumption, critical to capitalism, comes undone, making the falsehoods of its claims again unavoidably obvious.)

    What we most need here now is:

    What matters about the Hegelian principle is that it lets everybody (whether philosophers or not) work from the assumption that there are different choices one can make in order to build societies, establish cultures, criticize existing power structures and propose different ones. It kept alive an open-mindedness which has closed over the last decades perhaps measured especially since the fall of the Berlin Wall.


    What we need now is a resurgence of radical thought and a new clash of ideas and actions, approaches and solutions, increasingly guiding more powerful and incisive radical "action" solutions to expose the fraud of capitalism and resolve the class/economic contradictions within it, call you it what you may, socialism, or whatever. (On the latter, I care not a twaddle for the labels one attaches to their ideas-, except that they should be colourful, reasonably accurate, up to date and interesting. :D )

    In any case, here at the beginning of what is really only the latest "depressionary" collapse of the capitalist economy, we of the left, or however you choose to place those of us who stand "philosophically/ideologically" and practically "outside" capitalism, from a "progressive-co-operative" perspective, needs, at all speed, to launch this renewal of itself process. Then to proceed over this renewal period,to test our ideas in action and for receptiveness by "the masses". Found wanting or accurate, worked through, found acceptable or rejected by the broad mass of the citizenry, and forming permanent or temporary alliances, to move increasingly to engage "the system" tactically and strategically along a broad action front. This front, of course, should run from parliamentary to street level and workplace militancy, taking all the presumptions of capitalism's historical "permanancy" on. Challenging it. Exposing its fallacy. The intent being, at least from the more radical perspective of some of us, to begin a process of sidelining "the system's" credibility and influence, its ideological and practical hold over the masses, finally moving to eliminate its controlling presence over the affairs of society and the economy.

    In my view, we are not anywhere near the end of philosophy or ideology, but at the beginning moment of a new phase and reconfiguration in the development of it. Here, in this new emerging time, we discard what was valueless in the old ideologies, preserve what remains essential, and move on to further and more accurately develop our understanding and ideas of the world, society and our individual and collective place in it. This is the real spirit that is at the core of the Hegelian/Marxist tradition. What is really most valuable in it.

    And this too, is how we need to approach the ruling class assumptions about "globalism" and "protectionism". We need to question them, hone and craft our own view, and boldly challenge the underlying self-serving "imperialist heart" that beats at the centre of the capitalist view of it. They not only get "the economy" wrong, fundamentally, they get it all wrong, because they can't see beyond their own "greed dreams". Which keeps coming back to haunt us.


    Coyote

  2. by RickW
    Tue Mar 10, 2009 4:21 am
    "Capitalism" as we have seen it in practice, is fully dependent on an infinitely expanding horizon. It cannot function in a closed system. It is in fact a huge Ponzi scheme, requiring new "sales" in order to payoff previous "buyers".

    As Ed Deak is wont to say: "Wealth cannot be created."

  3. Tue Mar 10, 2009 6:25 am
    "The problem with Socialism is; Eventually you run out of other people's money." - Margaret Thatcher

    "Robin Matthews" said

    You’re told more. Capitalism is based upon “competition”, by which is meant a process in which others in (whatever) field are overcome, if possible destroyed, the market monopolized, and wealth production for the few placed before all else – before all reasonable human needs and aspirations. That happens as a result of increasing concentrations of wealth and power in fewer and fewer hands.


    This is incorrect. Capitalism is about competition, full stop. What capitalism has become is a system in which artificial market shortages are lobbied to government by businesses, and these shortages lead to the concentrations of wealth and power that stifles competition. Business has only been allowed to do this because of the people we elected to represent us. Capitalism is only doing what it knows how, pressing an an advantage in its favour.

    Because of this, protectionism is the opposite of what is needed. Businesses should not be given corporate welfare. They got greedy, they should pay the price - corporate death. Someone will still need widgets, and someone else will be willing to sell them, and someone else willing to make them. Demanding that only widgets from company A are acceptable is just a different form of market monopoly.

  4. Tue Mar 10, 2009 4:14 pm
    Someone will still need widgets, and someone else will be willing to sell them, and someone else willing to make them.


    Hear! Hear!

    Were it just a matter of rescuing the capitalists though. It is not however, of course. There is more to society and the economy than the few major capitalists, whom get all the attention and welfare largess, and that is the lives of countless millions of people whose lives get disrupted and impoverished in the process of ANY solution that involves rescuing capitalist competition, be it by allowing them to fail or saving them from themselves.

    Otherwise, outside of Margaret Thatcher being full of brown smelly stuff, and the Godmother of the gangster neoconism that has brought capitalism to here, I would say indeed, let capitalist so-called enterprise fail, as is its historically cyclical wont in any case. Only instead of rescuing either the capitalists and their failed system by any means, hard or soft love, really apply Social Darwinism and allow the survival of the fittest principle to do its evolutionary work. Let capitalism fail. The mistake we keep making is intervening to try and save a system that really wants/needs to fail, and making the dead walk again. Rescue the capital equipment investment and investment in people made by the whole of society, of course, be it through the interventions of the state (at the beginning) and/or, as I favour, from the get-go organizing "the people" and assisting them to take over the previously "capitalist's" presumed enterprise and run it for themselves. (Which will involve some societal investment by the whole as well, no doubt. But then society itself has made huge capital and people investments in capitalist so-called "enterprise" no less. Witness only the current record investments being made in it, by the whole of society.)

    The capitalists will invariably return to just looking after their own "profit" interest in the economy. With the professional/managerial advisory help it too will require, as do the capitalists, "The People" really in control of their enterprises and the fate of the economy will, essentially, as well look after their own interests, long and short term, only to the greater objective benefit of the whole of society. They being the majority whole of society. (And while workers should be charged with the overall management and operation of their "co-operative" enterprises, that "co-operating" should include on the new "elected" ownership and management boards, voting and ownership places for "community" level participation (local governments) and certain interest groups such as "environmental interest groups" that can help provide broader society oversight to operation consequences etc.. I would advise the inclusion of a "consumer" component as well.)

    Caleb is right in one regard: Capitalism wants to fail. Let it. After that, or in conjunction with allowing that to follow its natural course, apply, as I've said, real Social Darwinian logic. Move on and allow society to evolve, not without its own difficulties and new contradictions of course, and move on to the next stage of social/economic development. Capitalist "perfection", such as it existed for a brief while, did not itself occur overnight. And one should not expect more from a "co-operative" instead of "competitive" socio-economic form. (What you would get right away though, without the need for the passage of anti-democratic laws, with workers actually and seriously brought into the ownership and management process is, the elimination of labour strikes. :D Think about it, and the socio-economic consequences of that.)

    I agree with Caleb. Let all these capitalist enterprises fail-, and capitalism, if that is what it is going to do. Time to stop attempting to resurrect the dead. After that, he and I can part ideological company as to the practical and most democratically satisfactory alternatives.

    Coyote

  5. by RickW
    Thu Mar 12, 2009 1:19 am
    I agree with Caleb. Let all these capitalist enterprises fail

    As well, accord each and every citizen the same rights and privileges that corporations enjoy. It's called levelling the playing field.



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