Thanks to the BP spill and the
excellent coverage of it by people like Chris in Paris and a host of others, the relationship between the state and capitalism is coming under the microscope — a very good thing. This post offers a bit of orientation, and a small peek forward.
So let's look at three concepts and see how they interact. The first two are:
- The state (the federal government, the People's Republic, the Thousand-Year Reich, whatever)
- The owners of the means of production (capitalists, bankers, the "Big Boys," that ilk)
The third concept to notice is the
national interest (sometimes mislabeled "patriotism" or "chauvinism," after
M. Chauvin).
The first group, the state, has all the political power — if it wishes to hold onto it. And the second group, the ownership class, has the money and economic power. So what are the various ways the state and the owners can be related, and how is the national interest affected?
1. Independence. The state and the capitalists (owners) can be more or less independent of each other. This version has flavors, ranging from
laissez-faire capitalism to the modern notion of independence-
cum-regulation.
Under the Independence model, the state controls what it cares about, and the owners control what they care about.
National interest ("patriotism") is usually attended to, since it's something the state cares about. Mostly, the owners just want to roll around in cash.
This is the form of capitalism the U.S. used to be in.
2. Capitalists run the state. In this model, the capitalists have neutered the state, and taken over its territory as their own. The state still exists, but the owners (bankers & CEOs) tell it what to do.
What happens to
patriotism in this model? Well, that tends to run to extremes. At one end of the spectrum, the capitalists operate a highly chauvinistic state — and one word for this form of government, in fact, is "fascism." You could
look it up if you like.
And what about patriotism at the other end of the spectrum? Well,
there is none. The capitalists still want to rinse down in loot, and since the state is an extension of what they care about, no one minds the "national interest" store. The only good news here is that the Big Boys usually work independently while they're busy selling out the national interest. Thus they they operate like a minor league check against each other.
This is the form of capitalism the U.S. is in right now.
BP owns our sorry butts, and you can bet this will continue. Eric Holder is putting on a very good show, but don't put money on it lasting. (If you want to put down money and roll in it like the Big Boys, wait until everyone says BP is D.O.A. thanks to the DOJ, then B-U-Y.)
3. State capitalism. I mentioned this model as a footnote in
this post on Social Security. In this model, the state owns the means of production, period. The two groups have become one, with the state calling the shots.
We, the Chinese, and the Soviets have been mislabeling this model as "communism" ever since Lenin hijacked the
real Russian revolution — the popular one — from the Mensheviks. This isn't communism in any meaningful sense, just another, particularly pernicious form of capitalism.
Since in this model the capitalists work for the state, state capitalism can create an especially powerful entity. Reason — the capitalists don't ever work against each other. Thus the state still serves the national interest, and the owners
serve the state. If a state like this ever gets its act together,
and if the economy in question is on the rise, defeating its goals becomes very difficult.
This is the form of capitalism that China is in.
My bottom line? You have two of the strongest economies in the world:
- One, an aging, but still attractive U.S. economy, which sold its manufacturing capability so that a short list of people could grow even richer than rich (and a whole lot of people could feel like they're still getting even with the hippies); and
- The other, a young, supple, my-best-years-are-ahead-of-me Chinese economy, which bought the U.S. manufacturing capability — because, well, it was for sale.
Both are now poised to duke it out over the next 30 years or so. The difference between them?
In China, everyone serves the national interest. In the U.S., no one does.
More here.
Serving the national interest,
Gaius
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