The Occupation of Ottawa is a Far-Right Assault on Labor and Democracy 

February 10, 2022

By Stephen Gowans

Some people believe the occupation of Ottawa is a leftwing, pro-working-class phenomenon, but that’s hardly the view of trade unionists, community organizers, activists and frontline workers here in the city.

We see, feel, hear, and experience the occupation first-hand, on the ground. That might be why we understand the occupation differently: not as a leftwing phenomenon and democratic expression, but as a far-right movement of racists, evangelicals, union-haters, and conspiracy-minded lunatics, inspired and supported by the likes of Donald Trump, Ted Cruz, and Elon Musk.

A supporter carries a US Confederate flag during the Freedom Convoy protesting Covid-19 vaccine mandates and restrictions in front of Parliament on January 29, 2022 in Ottawa, Canada. – Hundreds of truckers drove their giant rigs into the Canadian capital Ottawa on Saturday as part of a self-titled “Freedom Convoy” to protest vaccine mandates required to cross the US border. (Photo by Dave Chan / AFP)

To be sure, you don’t have to live in Ottawa to grasp the true nature of the occupation. Ben Norton, who lives in Nicaragua, is under no illusion about what Occupy Ottawa is all about.

Norton recently tweeted:

I've seen enough right-wing, foreign-funded, astroturfed "protests" in Venezuela, Nicaragua, Cuba, Belarus, Hong Kong, etc. to immediately recognize one in Canada. Yes the neoliberal Trudeau gov't is awful, but allying with even more reactionary right-wingers against it is stupid.

Also…

It's so ridiculous that there are so-called "leftists" insisting we should oppose Canada's largest trucker union, representing actual working-class truck drivers, and instead side with Donald Trump and far-right US billionaires to support the rightwing capitalist convoy in Canada.

Teamsters Canada opposes the occupation and calls Covid-19 “the real enemy of truckers.”

Pierre LeBlanc, a local activist, recently wrote to Matt Taibbi, who has written an substack article describing the occupation as Canadian prime minister Justin Trudeau’s Ceauşescu Moment.

In his response to Taibbi, LeBlanc summed up quite effectively why the Ottawa occupation is an anti-labor, far-right phenomenon.  

Dear Matt,
I regularly read you and find much of your writings instructive. This time, you have overreached to cartoonish effect. Attempting to link Trudeau to Ceausescu was gross, baseless hyperbole at its worst. And it seriously erodes your credibility.
I despise Biden, the Clintons and Trudeau as much as you do, and have often said so in my writings, but you totally misrepresent what is going on here.
What is going on here in Ottawa and elsewhere in Canada is a full-on assault on Canadians by organised cadres of the extreme, fundamentalist, rightwing evangelicals, recently or forcefully retired RCMP and other police officers, one of Trump's advisors and a whole raft of Canadian and American conservatives and rightwing wingnuts. Much of it financed by American so-called donors and whipped-up by Fox News and many others. That you should associate your good name with them is sorely disappointing. 
Firstly, this is not a truckers' protest. It is a planned insurrection, a version of color revolutions not unlike what went on in Ukraine, Georgia and Bolivia, and the ongoing attempted coups d'État against Venezuela, Nicaragua, Cuba, Peru, Chile and many other countries around the world, and the defense and promotion of Apartheid Israel. As well as the attempted,laughable political and economic throttling of Russia and China. 
Real truckers who make their daily living crossing the border are few and far between. Indeed, this occupation is deeply damaging to them and their families - they will be long degraded by this cynical hijacking of their good name and profession. Even at the Ambassador Bridge blockade, there are only 5 transport trucks involved in that blockade. The rest are the same people who have been attacking nurses, doctors and other health workers in front of hospitals for over 2 years, and who have suddenly discovered that using their supped-up half-ton toys, 4X4s, SUVs and tractors as weapons is very effective. Much like Kissinger and Pinochet organized a fringe of truckers in Chile in 1973 to overthrow the Allende regime.
The cadres leading this are the who's who of Canada's supremacist extremists (you know the list) linked up with former RCMP officers (the latest iteration of the spokesman is ex-RCMP). They are holed-up in the luxury of an Ottawa hotel with one of Trump's advisors, linked up with other yahoos of the US oligarchy/billionaire club (Elon Musk, etc., and the military complex deep-state agents). Collectively, they are highly experienced in sabotage, artificially creating infrastructure and economic gridlock to bring a society to its knees and whipping up disaffected and naïve citizens as their film extras, blackshirts and peons.
But you surely know all of this, Matt; you're a student of capitalist/imperialist/fascist history. What I don't understand is what motivates you to such drivel. Unless it is some kind of nihilistic desire to replace Canada's capitalist, racist, colonialist system by any means, even if that means creating an even more fascist state. 
You're either naïve, seeking attention or a classic disruptor, consequences and massive suffering be damned.
Pierre LeBlanc

The lunatic far right People’s Party is four-square behind the occupation, as are the interim leader and likely future leader of the country’s Conservative Party. When have anti-union, pro-business, social conservative parties ever embraced an authentic, pro-labor, left-wing movement?

The Ottawa police have done nothing to liberate the city, preferring to avoid confrontation and hob-nob with the occupiers, or avoid them altogether. The city’s chief of police, Peter Sloly, is an endless source of excuses for why he and his officers cannot act. Early on he declared “there may be no policing solution.” The chief’s inaction has led to calls for his resignation, along with that of the city’s mayor, Jim Watson, dubbed Mayor Milquetoast by a local newspaper columnist for offering nothing more than impotent pleas for the occupiers to go home. With what genuine leftwing, pro-worker, movement has the police ever been complicit?

A coalition of local labor unions, community organizations, and residents will hold a rally this Saturday in solidarity with frontline workers and Ottawa residents affected by the occupation.

It will

  • Call for an end to the occupation.
  • Show support for frontline workers.
  • Say no to white supremacy, misogyny, homophobia, transphobia and all other forms of hate that the convoy has directed at residents.
  • Call for public health measures that protect our communities.
  • Call for immediate support for workers who have lost income due to the convoy, 14 paid sick days for all workers, decent pandemic pay, an end to the crisis in long-term care, and a strong public healthcare system.

A majority of Canadians and US Americans support Covid-19 restrictions. Occupy Ottawa is not a grassroots working-class movement, but an astroturfed corruption of far-right billionaires whose aim is to pressure governments to lift all Covid-19 restrictions and return to business-normal. As The Wall Street Journal, the mouthpiece of the hard-right billionaire class put it, “the message of Canada’s trucker protest” is that “it’s time for the pandemic emergency orders to end.” (How many legitimately leftwing, pro-worker, pro-democracy movements were ever endorsed by The Wall Street Journal?) If the far-right elite and its occupation shock-troops have their way, governments will transition from Covid-19 mitigation measures to a ‘living with Covid’ strategy, more aptly dubbed ‘dying with Covid’–over the opposition of a majority of their citizens.

The Journal acknowledged that most Canadians oppose the occupation of their capital. Musk, Trump, the Journal, Canada’s far-right parties, and the occupiers care not a fig for democracy, not one jot for the well-being of others, and not one iota for the welfare of labor. Their sole concern is to lift Covid-19 restrictions, and they appear ready to go to great lengths to achieve their aim, no matter how reactionary their goal and no matter how anti-democratic and thuggish their methods.

Pierre LeBlanc can be reached at pierrealeblanc@rogers.com

The pandemic is done. Except for the burials.

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

Sense and Nonsense About Ukraine

January 21, 2022

By Stephen Gowans

Joe Biden thinks, or at least says he thinks, that a Russian invasion of Ukraine would “be the most consequential thing that’s happened in the world in terms of war and peace since World War II.” Biden is either delusional, or supremely confident in the power of US propaganda to turn black to white, otherwise he couldn’t possibly summon the chutzpah to utter such arrant nonsense. Unless Russia plans (a) to invade Ukraine and then (b) burn it to the ground, as the United States did to North Korea from 1950 to 1953, or napalm and exfoliate the country, as Washington did to Vietnam, or bomb and sanction it into the stone age, as the Pentagon did to Iraq twice, or spend 20 years killing civilians in drone strikes as four US administrations did to Afghanistan, then Russia could hardly match the United States in producing consequential markers on the record of post-World War II war and peace.    

Equally absurd are the remarks of the leader of one of Washington’s favorite lickspittles, the government of Canada. “We are working with our international partners and colleagues to make it very, very clear that Russian aggression is absolutely unacceptable,” intoned the popinjay Justin Trudeau, a man whose servility to US interests is without limit. “We are standing there with diplomatic responses, with sanctions, with a full court press to ensure Russia respects the people of Ukraine.” Too bad Canada hadn’t acted to ensure the United States respected the peoples of Korea, Vietnam, Indonesia, Iraq, and Afghanistan, to say nothing of the peoples of Iran, Cuba, Venezuela, and Palestine, among others.   

The emperor and his Canadian viceroy

To avoid the terrible fate of being excommunicated from the church of respectable bourgeois politics, Canada’s peace and love party, the NDP, advocated the use of “sanctions” rather than “war” to deter what is said by governments and respectable (i.e., bourgeois) media in the West to be an anticipated Russian “aggression” against Ukraine, thus accepting as legitimate and propagating two spurious claims: (1) that sanctions—which regularly produce death and misery in excess of what is wrought by bullets, shells, bombs, and missiles—are a peaceful and desirable alternative to war, rather than a means of warfare itself, and a particularly vicious one at that; and that (2) Russian aggression lies at the heart of the dispute over Ukraine.

At its base, the conflict between Russia and the United States pivots on the question of security guarantees. Russia has asked for them and the United States refuses to grant them. Why does Russia feel insecure?

For one thing, the country, along with China, is at the center of the US reticle—Russia constituting what Washington calls a “revisionist power.” “Revisionist”, in US hands, means seeking to revise the international rules-based order—an order based on a set of shifting rules of which the United States alone is the architect and which it invokes whenever convenient, for its own benefit. Revising the international order is refusing to do whatever the US commands. The US president, uncrowned king of the world, or much of it, might as well intone, “The international rules-based order, c’est moi.”  US politicians and journalists are quick to use the words “dictator” and “authoritarian” to refer to the targets of US aggression, but, skilled propagandists to a person, refuse to use the words in reference to Washington’s own relationship with the rest of the world. Yet the words fit to a tee. The United States seeks a relationship of prepotency vis-à-vis other countries. Ewan MacColl and Peggy Seeger described the relationship this way, in an amusing 1970s song, sung to the tune Yankee Doodle.

Yankee Doodle came to town

H-bombs in his pocket

Says chum if you don’t toe the line

I’ll blast you with my rockets

To be sure, the dictator’s tools of coercion have always surpassed H-bombs alone and include sanctions (more aptly known as starving people into submission, a favorite of Canada’s “peace-loving” NDP), fomenting rebellions, and declaring US toadies to be the legitimate leaders of countries that defy the US  dictatorship (Juan Guaidó, for example.)

In 2019, the RAND Corporation, the Pentagon’s think tank, drew up a list of measures the United States and its satellites, such as henchman Canada, could take to “overextend and unbalance” Russia as a means of coercing Moscow to toe the US line. The measures were:

  • Expand U.S. energy production to stress Russia’s economy, potentially constraining its government budget and, by extension, its defense spending. By adopting policies that expand world supply and depress global prices, the United States can limit Russian revenue.
  • Increase Europe’s ability to import gas from suppliers other than Russia to economically extend Russia.
  • Impose deeper trade and financial sanctions to degrade the Russian economy. 
  • Challenge the legitimacy of the state. Create the perception that Moscow is not pursuing the public interest by focussing on widespread, large-scale corruption.
  • Encourage domestic protests and other nonviolent resistance to distract or destabilize the Russian government.
  • Undermine Russia’s image abroad to diminish Moscow’s standing, influence and prestige. 
  • Encourage the emigration from Russia of skilled labor and well-educated youth.
  • Relocate bombers and missiles within easy striking range of key Russian strategic targets to raise Russian anxieties.

The point is that the United States views Russia as a challenge to what the late Hugo Chavez once called the international dictatorship of the United States and Washington has not allowed the challenge to its dictatorship to stand.

The second reason for Russia to feel insecure, if the first isn’t enough, is that the United States is the world’s greatest menace to peace, contrary to the efforts of Joe Biden, Justin Trudeau, sanctions-loving social democrats, and the Western bourgeois media to flip this reality on its head. The United States’ addiction to war—according to Washington’s own Congressional Research Service, “the US military has waged war, engaged in combat, or otherwise employed its forces aggressively in foreign lands in all but eleven years of its existence”, that is, in more than 95 of every 100 years since 1783—is brushed aside. Twenty years in Afghanistan, the destruction of Iraq, the illegal occupation of Syria, the air war on Yugoslavia, the bombing of Panama and invasion of Grenada, wars on the peoples of Vietnam and Korea, to say nothing of wars of economic aggression on these and countless other countries—all these US aggressions are forgotten. Instead, we’re led to believe that, motivated by a desire to recover territory lost to the Russian empire, Vladimir Putin has asked for security guarantees he knows Washington cannot grant, and will use the denial of these guarantees as a pretext to invade Ukraine. Why the United States cannot guarantee Russia’s security, and why security guarantees are “non-starters”, is never explained. However, the undeniable US record of worshiping Mars is explanation enough: The United States cannot provide security guarantees, because the rules-based international order, of which the United States is the sole architect and its plutocrats the principal beneficiaries, depends on military threat and aggression as its ultima ratio. The alluring goal of integrating Russia into the US economy as a complement to, rather than as a rival of, corporate USA, offers too many lucrative profit-making opportunities for Washington to voluntarily surrender its program of anti-Russian military pressure.

Moscow has presented its request for security guarantees in the form of two proposed treaties, one with the United States and the other with the United States’ instrument, NATO. As far as I can tell, the details of the proposed treaties have never been presented in major US media, perhaps because they contradict the Western narrative of Russian belligerence.

Draft treaty with the United States: 

  1. Russia and the US shall not use the territory of other countries to prepare or conduct attacks against the other; 
  2. Neither party shall deploy short- or intermediate-range missiles abroad or in areas where these weapons could reach targets inside the other’s territory; 
  3. The US shall not open military bases in the post-Soviet countries that are not already NATO members, use their military infrastructure, or develop military cooperation with these states;
  4. Neither party shall deploy nuclear weapons abroad, and any such weapons already deployed must be returned. Both parties shall eliminate any infrastructure for deploying nuclear weapons outside their own territories; 
  5. Neither party shall conduct military exercises with scenarios involving the use of nuclear weapons; and, 
  6. Neither party shall train military or civilian personnel from non-nuclear countries to use nuclear weapons. 

Draft treaty with NATO.

  1. NATO shall not expand further east and must commit to excluding Ukrainian membership; 
  2. NATO shall not deploy additional forces or arms outside the borders of its members as of May 1997 (before the alliance started admitting Eastern European countries); 
  3. NATO shall not conduct any military activity in Ukraine, Eastern Europe, the South Caucasus, or Central Asia; 
  4. Russia and NATO shall not deploy short- or intermediate-range missiles within range of each other’s territories; 
  5. All parties shall refrain from conducting military actions above the brigade level which shall be confined to a border zone to be mutually agreed upon; and,  
  6. Neither party shall regard the other as an adversary or create threats to the other, and all parties shall commit to settling disputes peacefully, refraining from the use of force.

The provisions of the proposed treaties are in no way aggressive. On the other hand, the expansion of an anti-Russian military alliance up to the border of Russia, a country the alliance-leader, the United States, defines as a challenger to its hegemony, is unquestionably menacing to Russia. As to the canard that NATO cannot possibly pose a threat to Russia, for, after all, it’s merely a defensive alliance, that too depends on historical amnesia. An alliance that was at the center of unprovoked wars on Yugoslavia, Libya, and Afghanistan, is, ipso facto, an instrument of aggression. It is also an instrument of US domination, used (a) to keep Washington’s former imperialist rivals Germany, Britain, France, and Italy under US tutelage; (b) to create markets for US weapons manufacturers by demanding that NATO lackeys buy weapons systems that interoperate with the US military; and (c) to enlist NATO subalterns in the US project of “overextending and unbalancing” states that remain outside the US empire.

It may, contrary to what one reads in the press, be very much in the interest of Washington to provoke a Russian invasion of Ukraine. What better way to overextend and unbalance the Eurasian giant? A Russian invasion of the east European country would be a march into a quagmire. Washington welcomes the opportunity to overextend and unbalance Russia via a Ukrainian proxy—that is, to carry on the US war on Russia to the last Ukrainian. What’s more, and referring back to the RAND Corporation’s proposals, what better way than by provoking an invasion of Ukraine to do the following?

  • Undermine Russia’s image abroad to diminish Moscow’s standing, influence and prestige. 
  • Create a justification to impose deeper trade and financial sanctions to degrade the Russian economy. 
  • Provide a pretext to relocate bombers and missiles within easy striking range of key Russian strategic targets to raise Russian anxieties.
  • Pressure Germany to cancel Nord Stream 2 to increase Europe’s ability to import gas from suppliers other than Russia as a means of economically weakening Russia.

“Strobe Talbott, the original choreographer of NATO expansion in the post-cold war order,” as  M.K. Bhadrakumar describes him, has “triumphantly congratulated Blinken and Jake Sullivan for cornering Russia.” And well he should. In Ukraine, Washington has created an anti-Russian state on Russia’s border, which, while not formally integrated in NATO, is a de facto NATO asset. Left alone, Ukraine poses a threat to Russia. Invaded by Russia, it remains equally a threat.   

Provoking a robust Russian reply to an advancing and predatory NATO offers other benefits to Washington as well. France and Germany—the principal EU actors—evince a growing desire to achieve a strategic autonomy that would allow them to take advantage of the economic opportunities a closer relationship with Russia would create. Growing Russian-European economic integration would disadvantage US corporations. For example, in preference to reliance on Russian natural gas, Washington has pressed Europe to purchase liquid natural gas from the United States, even though the cost is much higher. Washington has also balked at the prospect of EU military autonomy on the grounds that it would cut US arms companies out of contracts for military provisioning. In other words, the United States uses its dominance over its former imperial rivals to tilt the field in favor of corporate USA (and also to keep former and therefore potential future imperialist rivals in check.) There’s a cost, then, of belonging to the US empire—sacrificing one’s own economic interests to those of the US plutocracy. A Russian invasion of Ukraine would provide Washington with a moral argument to pressure Germany and France into renouncing their growing openness to Russia in favor of more openness to corporate USA, while cementing Europe’s place in the US empire and countering the gravitational pull of Russia on European economies.  

Russia is clearly threatened by the United States and its NATO alliance, and the treaties proposed by Russia to guarantee its security would desirably stay the hand of an aggressive Washington, to the benefit not only of Russia, but to those of us who live in NATO countries who have nothing to gain, and much to lose, from the US plutocracy’s continuing predatory advance on its rivals. Our enemies are the leaders of the column in whose ranks we are invited to march.

+++

Coming soon. The Killer’s Henchman: Capitalism and the Covid-19 Disaster. Available for pre-order from Baraka Books.

THE KILLER’S HENCHMAN: Capitalism and the Covid-19 Disaster

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

What Makes the United States Richer than its G7 Partners? Imperialism, not Lower Taxes

September 17, 2021

By Stephen Gowans

Every country that has more colonies, capital, armies, than we have, deprives us of certain privileges, certain profits or super-profits, so among nations, the one that is economically better situated than others receives super-profits. It is the business of the bourgeoisie to fight for privileges and advantages for its national capital.–Lenin*

The Harvard economics professor, N. Gregory Mankiw, who served as chairman of the Council of Economic Advisers to the US president from 2003 to 2005, points to lower GDPs per capita in Western Europe to warn against US Americans emulating Western Europe’s welfare states. The higher taxes that Western Europeans pay for robust social supports, he cautions, undermine incentives to work, leading to lower incomes. “Europeans work less than [US] Americans because they face higher taxes to finance a more generous social safety net,” Mankiw argues.

While it’s true that the United States’ G7 partners are less affluent in GDP per capita terms, to what extent is this due to higher taxes versus the United States’ ability to shape the international economic order to suit the interests of US investors and businesses at the expense of its G7 partners?

US politicians endlessly point to the post-World War II economic order, of which Washington was the chief architect, as the key to US prosperity. For example, in 2017, John McCain, a major figure in the US foreign policy establishment, remarked: “We are the chief architect and defender of an international order governed by rules derived from our political and economic values. We have grown vastly wealthier and more powerful under those rules.” McCain warned that challenges to the US-created order threatened US prosperity.

Today, McCain’s “rules” are variously referred to as “the rules of the road,” the “rules-based international order,” and “international rules and norms.” What they refer to are US-created rules that make the United States “vastly wealthier and more powerful”—indeed, vastly wealthier and more powerful than even its G7 allies.

In an important article he wrote for the March/April 2020 edition of Foreign Affairs–the journal of the influential Wall Street-funded and directed policy formulation group, the Council on Foreign Relations–soon-to-be president Joe Biden noted that for the last 70 years, the United States has “played a leading role in writing the rules, forging the agreements, and animating the institutions that guide relations among nations.”

As McCain acknowledged, Washington constructed the rules to serve US economic interests.

US military might and economic leverage have allowed Washington to define the rules and enforce them. Our “ability to project power [is inter alia] the basis of how we … advance U.S. interests,” declared the Chairman of the Joint Chiefs of Staff in 2017.

Washington’s obsession with “the rules,” who writes them, and who benefits from them, lies at the heart of US hegemonism, but also US hostility to China. China, and other powers such as Russia, North Korea, and Iran, which Washington denounce as revisionist, want to revise the rules of the road that put the United States ahead of all other countries, politically, militarily, and economically. These countries, along with others, have formalized their opposition to a global order based on US rules and US supremacy by founding The Group of Friends in Defense of the Charter of the United Nations, an 18-nation alliance that promotes an international order based on international law and the equality of nations.

“Who writes the rules that govern trade? … The United States, not China, should be leading that effort,” insists Biden.

Until the end of World War II, Washington’s G7 partners, Germany, Japan, Italy, France, the UK, and Canada, were independent competitors of the United States, each seeking to carve up the world into their own spheres of trade, investment, and economic advantage. (Canada, as part of the British Commonwealth, followed London’s lead.)

The postwar international order, authored by the newly emergent hegemonic power, the United States, integrated the defeated Axis powers, along with the weakened French and British Empires, into an international order, defined by Washington, informed by Wall Street’s values, and aimed at promoting corporate USA’s prosperity.  

To ensure its former imperial rivals would now accommodate, rather than compete with, US economic interests in a new US-defined world order, the United States occupied militarily Germany, Japan, Italy, and the UK. For almost 80 years, the United States has maintained a robust military presence in each of these countries. Why? In 2002, in an interview with United Press International, Alexander Haig, former Supreme Commander of NATO and US Secretary of State in the Reagan administration, explained.  

Q — Why is the United States still stationing 70,000 troops in Germany?

A — A lot of good reasons for that. This presence is the basis for our influence in the European region and for the cooperation of allied nations…. A lot of people forget it is also the bona fide of our economic success. The presence of U.S. troops keeps European markets open to us. If those troops weren’t there, those markets would probably be more difficult to access.

Q — I didn’t forget. I just didn’t know that if the United States didn’t maintain 70,000 troops in Germany, European markets might be closed to American goods and services.

A — On occasion, even with our presence, we have confronted protectionism in a number of industries, such as automotive and aerospace. 

In other words, the markets of former imperial rivals were integrated into the US market, and the glue that bound them to the United States, and continues to bind them–as The New York Times’ columnist Thomas Friedman once put it–is “the hidden fist” of “the United States Army, Air Force, Navy and Marine Corps.”

Washington would also integrate its former European imperial competitors into NATO, placing their militaries under formal US command, and thereby taking future inter-imperialist military rivalry off the table. At the same time, NATO allows Washington to exploit the fettered militaries of its former rivals as force multipliers in the pursuit of specifically US goals in the US-defined international realm.

After the war, Washington imposed a pacifist constitution on Japan, the United States’ main rival for domination of East Asia and the Pacific, effectively emasculating the country militarily, and ensuring it would not contest US primacy in the region. Washington is now pressuring Japan to lift the pacifist restrictions the United States itself imposed on Tokyo, in order to gear up for war on “revisionist” China, under US direction.

Additionally, the US military controlled, and continues to control, the world’s trade routes, and hence its former rivals’ access to markets and raw materials. “If you have a global economy, I think you need a global navy to look after that economy,” said U.S. Pacific Fleet Commander Admiral Scott Swift. The global navy is none other than the US Navy. Author Gregg Easterbrook notes that “the US Navy is ‘the police force of nearly all blue water.” … It “has made the oceans … safer for commerce.” Specifically, US commerce.

Importantly, Washington keeps its hand on the Middle East oil spigot. Germany, France, Japan, and Italy are highly dependent on oil from West Asia. With Washington able to close the spigot at will, Western Europe and Japan have few options but to accept what Hugo Chavez called “the international dictatorship of the United States empire.”

Hence, the United States’ G7 partners emerged from the war as US vassals. Within the globe-girding US empire, they were assigned roles as junior partners—that is, subordinate components of the US imperium. Their economic interests would be junior and inferior to those of Wall Street and corporate USA.

Mankiw’s analysis is risibly superficial. The idea that taxation undermines incentives to work rests on the notion that effort is proportional to its return. Taxes reduce the return on effort and therefore discourage work. If this is true, the opposite is also true: the greater the return, the greater the effort. By this logic, Mankiw ought to advocate a robust increase in the minimum wage, reasoning that the more money people are able to make, the more likely they are to want to work. But he’s not. Instead, Mankiw’s prescriptions invariably favor employers over workers. The wealthy should not be burdened by high taxes. Governments ought to raise revenue through consumption taxes: those that hit low-income families the hardest and the wealthy the least. In invariably promoting the interests of capital, Mankiw illustrates why Karl Marx described economists of the Harvard professor’s color as “hired prize fighters” of the bourgeoisie, not “disinterested inquirers,” whose only concern was “whether this theorem or that was … useful to capital or harmful.”

Moreover, Mankiw divorces his analysis from the surrounding conditions and events. History, politics, the imbalance in political and military power between the United States and Western Europe, do not enter his field of vision. Notwithstanding Mankiw, the disparity in per capita income between the United States and its G7 partners can be explained by Washington building a post-WWII international order to privilege US economic actors at the expense of its defeated and weakened imperial rivals. In other words, the outcome of the three decades-long, 1914-1945, inter-imperialist struggle, was the emergence of a US leviathan—one that reordered the world to put, not business on top, but US business on top, with the consequence that US GDP per capita would top that of its former competitors.  

Had Germany prevailed in the struggle, and had it subsequently integrated the United States into a German-led global economic order, German GDP per capita would almost certainly be greater than that of the United States, for the simple reason that German-authored rules would favor German businesses. Likewise, had Japan prevailed, the Japanese, not US Americans, would enjoy the higher GDP per capita.

This is not to say that the rivalry has come to an end. It hasn’t. That the G7 countries continue to compete among themselves for markets and investment opportunities can be seen in Germany forging a stronger trading relationship with Beijing than Washington favors; in rivalry between the EU and the United States in connection with Airbus and Boeing; in Germany and France flirting with strategic autonomy for Europe; and between the United States and France in arms sales. These are but a few examples. Even so, while competition persists, it does so within bounds defined by Washington, enforced by its ability to control its rivals’ access to markets and raw materials.     

It is not, then, Western Europe’s welfare states, and the support they receive from higher taxes, that account for why Washington’s G7 partners are poorer. Instead, the lower GDPs per capita of the United States’ former imperial rivals can be explained as the outcome of their losing the inter-imperialist struggle of the first half of the twentieth century. Emerging victorious and strengthened from the thirty-year-war, the United States used its military and economic clout to impose a global economic order on its former rivals—an order which puts corporate USA first, and relegates its G7 partners to junior positions, provides them junior access to profit-making opportunities, and leaves them with junior incomes.    

*V.I. Lenin, “Imperialism and Socialism in Italy” in Lenin: The Imperialist War, International Publishers, 1930, p. 333.

As an anti-pandemic tool, vaccines have turned out to be more mirage than oasis

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

The COVID-19 Crisis is The Result of the Death Drive of Capitalism

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

The Moral Scandal of Vaccine Inequality Has a Name: Capitalism

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

Vaccine Imperialism

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.

Weaponizing Covid-19: How Washington is Using the Pandemic to Help Destabilize Cuba

Subscribe to continue reading

Subscribe to get access to the rest of this post and other subscriber-only content.