Thursday, 21 February 2008
The current outsourcing and downsizing of manufacturing in the U.S. will eventually lead to fascism if past history is a dependable predictor of the future. A decrease in the contribution of a country’s manufacture to its trade balance will lead to large trade deficits causing a drop in the value of a country’s currency. When this occurs, an accompanying decrease in the living standard of its citizens will result in political unrest leading to the establishment of a political state under the control of a powerful ruling class. The U.S. is currently in experiencing the beginning stage of this process.
Post-war Germany is a good example of what occurs under these conditions. The German people’s reparations payments to the victorious Allies after World War I were unsustainable and eventually led to an unwillingness of the working classes to continue their manufacture. The proceeds of almost all their production had been going to foreigners. This discontent and “revolt” of the industrial working classes led to an essential halt in manufacturing. Without production, there were no consumption items available for purchase by foreigners or industries in which to invest. The Reich’s mark went into free-fall and hyper-inflation destroyed the wealth of the middle class.
With a poverty-stricken populace and massive unemployment, the scene was set in Germany for someone who had the will and ability to take control and reestablish prosperity. The public was rightfully interested in a return to prosperity and was unfortunately ready to accept whatever means were necessary to attain it.
Hitler and the Nazis were the means, backed by what remained of the capitalists, to control the disillusioned citizens (by force if necessary), and to restore production. They accomplished this by establishing public works programs and a resumption of manufacture accompanied by a repudiation of reparation payments. Once the Nazis assumed power there was no chance of a return to a democratic government.The history of Italy under Mussolini and Spain under Franco was similar. To control a disgruntled populace believing socialism to be their salvation, these despots were supported by the rich (as well as the church) in the suppression of the people in the presumed interests of all. All these fascist governments ruled by means of intimidation of the populace by the military or paramilitary under their immediate control. They were in turn financially backed and encouraged by the rich who were interested in maintaining social and economic control. Doesn’t this sound just a bit like the “law and order” so prized today?
http://dandelionsalad.wordpress.com/2008/02/21/outsourcing-will-ultimately-lead-to-fascism-in-america-by-richard-backus/