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Blog Posted in avatar   Bill Jencks's Blog

American Capitalism: Profits Matter, Jobs Don't

By Bill Jencks
Posted Apr 1, 2012 in Politics
Having watched the progress of the financial crisis over the last several years in America, I still remain breathless and astounded at her remedial policies. I am particularly frustrated at the more-huge-debt-now-no-worries-pay-later policies of the American government and I'm even more shocked at the sheer apathy of the US citizens -- all they ever do is politicize their economic arguments, when it is so clearly evident that very few even have an educated clue on what actually is good remedial economic policy for the financial crisis.
I still believe that the main problem here is that the US Administration and Government are both completely corporate driven and clearly do not fear or hear their citizens opinions. To find some understanding and perhaps part of the answer, it may help to look East.
How did China handle her financial crisis?
When the crisis hit China, a democratic but dictatorial communist state, the government moved very fast indeed and initially did very much the same as the US government. But - Wow - what a completely different response and outcome !! Since the Chinese Government has nationalized her banks as well as her utilities -- including energy -- when the Chinese leaders initiated their own large stimulus and ordered her banks to lend -- what happened? Within days, the Chinese banks were furiosly lending to businesses and her citizens to stimulate domestic demand. When Obama initiated his stimulus and ordered the American banks to lend, what happened? Big Yawn. All the megabanks completely ignored his command and simply looked after their own financial positions instead. American megabanks can do this because the freedom to corrupt and the notion that this corruption is "normal"(completely acceptable) pervades the US media regarding the politcal and financial arenas. The attitude of "Hey, well, we can't do anything about this corruption anyway can we?" which is the stock answer of most. So, therefore, the freedom to corrupt is now perfectly OK for the unregulated US financials isn't it? We're all happy with that aren't we? Unfortunately, many do not see that this is why America is still in trouble economically. Mainstreet is still a dollar desert, but that's OK. Yeah, right, I forgot. Freedom to corrupt. Sorry.
China also initiated a huge commodity and raw materials purchasing spree that included gold, silver, steel, copper etc as part of her recovery strategy. Why did China do this? She did this because China knew that commodities would all go up due to America's well known economic tactic of both trying to inflate away her debt and forcing the developing countries to buy US Treasuries(more easy credit to America) by devaluing the dollar. This has always been the time honored economic tactic of American foreign policy when in crisis. Trouble is that this American strategy is so obvious and predictable. Plenty of time then for China to quickly plan and organize her own economic defence due to America's slow-as-a-slug-in-treacle-to-get-anything-done style of politics. Most here don't really understand why China has adopted her anti-American policies, though I have tried to explain it often enough. The differences in crisis policy outcomes between the American Government and the Chinese Communists simply boil down to focus and incentive. The American Government is only ever focused now on satisfying its corporate desires at the right price. That's it as far as I can see -- the US citizen just doesn't get a look-in.
China on the other hand is focused completely differently. Many commentators confirm that if the Chinese Communists Government does not perform economically well for their citizens in this global crisis then there will be outright national rebellion. And this is the incentive or fear-factor which drives the Chinese Communists so completely to focus on succeeding with their own crisis policies. If the Chinese Communists were toppled by rebellion, then chances are that all the communist leaders would have to explain themselves at the World Courts regarding the many human rights issues they have breached.
This is why China couldn't give two flicks about not obeying or angering America now or anybody else for that matter. A rebellion is the worst possible political scenario for the Chinese Communists, quite understandably I think. Now compare China's government focus and incentive to what actually drives American Government policy at home and abroad. With respect to the citizens economic needs and jobs, it's no contest really isn't it?
Thomas Jefferson said it well:
"When governments fear the people, there is liberty. When the people fear the government, there is tyranny."
I guess political attitudes have changed somewhat since Jefferson's day due to the unhindered political infestations by the corporate elite into the rotten US government woodwork. And now, it seems, they are all but immovable and their corrupting influence pervades everything political, social or economic with such disgusting ease...
In a democracy, with all its apparent freedoms, virtue always competes with vice and, in the end as proven throughout the history of those unfortunate nations, vice always wins and whose eventual effects act to completely destroy democracy by unleashing dictatorship, unseen and unrealized, through the back door of corporate-driven politics. And in my own humble opinion, America is easily three quarters of the way there already.
And while American democracy continues to creak and crack asunder, the status quo facade is so cleverly maintained by its hidden rulers. Behind that facade, both freedom and liberty have been locked up, shackled and forgotten while the blinded and distracted citizens wildly applaud as they heartily scream and shout -- Bravo !! and Encore !!