Trump plays silly buggers with trade.

It’s hard not to think of Trump as either silly or cynical.  His economic nationalism is skating on very thin ice and is impossible given the current state of capitalist industry and finance in the world today. Trump should know that capital has long considered national borders as an inconvenience, an opportunity to make more capital, but certainly not as impenetrable walls. His own campaign material was printed in China. His ‘Make America Great Again’ hats were made in China. What the hell is he thinking? It may be that he doesn’t care a wit about any of this because nationalism and flag waving are big sellers in the US. If enough Americans buy into his strategy, if in fact he has one, he can safely ignore his anti-globalist stance in practice and get on with making more money for himself and his cronies. He promised Appalachia that coal would return. It won’t. Empty promises don’t matter, it seems. China and Canada are mean and unfair to poor little USA. ‘Yes! That’s right!’ shout his acolytes. Blame others, that’s it. The people will lap it up. As long as people believe him, Trump feels safe. That would make him the consummate cynic. Do you buy into the idea that Trump knows exactly what he’s doing? His popularity is slowly waning however so he had better watch his ass. Now that I’ve got that off my chest, I want to repeat here what I’ve written before, at least in its essence, elsewhere in this blog (among other places). Yes, I will be repetitious in this post, but only because sometimes repeating a message over and over again is the only way to get through to some people. Of course the people I would like to convince to look more deeply into Trump’s politics are not likely to read this blog. Research, science and thoughtful criticism are not where they turn to for ideas on current political affairs. Belief is enough for them, heart and feeling trump brain. Because Trump is so high on America First, I want to outline some ideas that have been kicking around for centuries about the relationship between countries and capital. Where do American corporations fit into Trump’s world of international trade? Where do international industrial practices, just in time production, export processing zones and globalist production, distribution and consumption fit in Trump’s world? Who knows? However, I don’t think it matters much because capital is bigger than Trump and bigger than the American political system. Capital will eventually eclipse all politics and we’ll be left with who knows what. That may be the end of our tenure on this planet. I have no idea. The problem is that we are such a species full of contradictions. We can do amazingly wonderful things then in the blink of an eye turn into murderous butchers. But back to my point. There is a ton of books that have been published in the 19th, 20th and now in the 21st century about the relationship between countries and capital, but they haven’t seemed to have convinced most people that countries are no longer the repositories of capital and haven’t been for a couple of centuries. Most of the books and scholarly articles I’ve read, and I’ve read dozens on this subject, are clear that capital has long since eclipsed countries as the seat of political economic power. Barnet and Muller in their book Global Reach: The Power of Multinational Corporations from 1976, the year I entered graduate school, argue that of the 100 most powerful economic entities on the planet, 49 of them were multinational corporations (MNCs). I’m sure that ratio is now even more skewed towards MNCs than it was then. I suggested earlier in this post that I was about to write about capital, so what am I doing writing about multinational corporations? Well, MNCs are the seat of capital, the embodiment of what capital means and stands for. They are the crystallization of capital, the vehicles for the generation, circulation and consumption of capital and ultimately its concentration. It might be informative at this stage to define what I mean by capital. I’m not going to do that except to say that capital is the means of creating and re-creating wealth although people commonly equate capital with money. Actually, Marx defined capital in the 1860s with his book, Capital. If you want to understand capital, read Marx, then read some more. A recent book by Thomas Piketty (2017) called Capital in the Twenty-First Century, takes up Marx’s challenge and does a fair job of it. His argument carries on where Marx left off. He clearly documents how capital has become increasingly concentrated in the hands of just a few corporations and individuals (the 1%) over the past three centuries. It’s been a slow but inexorable process. I’ve already argued in this blog on several posts that countries were a creation of capital to start with. ‘Modern’ capital was initially dominated by merchant capital, think Christopher Columbus, (starting in the 11th Century and even before), was replaced eventually in the mid 18th Century by industrial capital, think Wedgwood, then in the late 19th Century by finance capital, now, of course, think Rothschild and Goldman Sachs. That doesn’t mean that all forms of capital haven’t survived, it just means that the dominant form of capital has changed over the decades. In the face of the persistent and overwhelming power of capital, countries went from being somewhat independent political entities with more or less functioning economies to essentially servants of capital and managers of the working class. It didn’t happen overnight. It’s a process not an event. As Harold Innis (1894-1952), a political economist and professor at the University of Toronto, wrote in the 1940s, politicians rely on national statistics to support their power. The Canadian government collects national statistics and ostensibly relies on them to make political decisions. Stephen Harper did not like Statistics Canada because it often reported in ways he did not approve of. Innis knew that national statistics were often a sham and he said so. Think of this possible scenario: General Motors sends a car it assembled in Oshawa to Michigan. Stats Can considers this a transaction that needs to be reported under the heading: international trade. Or this: Canada’s petrochemical industry is overwhelmingly owned by American companies. They ship their product along their pipelines from Canada (Alberta) to the US for refining. That is international trade. It strikes me that if we want to get a grip on how ‘our’ economy works we need to abandon our traditional way of collecting statistics or we must at least map out how large multinational corporations do business across borders. William Carroll at the University of Victoria studies international supply chains. His work is illuminating, but the situation is changing so rapidly it’s hard to keep up. According to the Office of the United States Trade Representative:
  • U.S. goods imports from China totaled $505.5 billion in 2017, up 9.3% ($42.9 billion) from 2016, and up 57.3% from 2007. U.S. imports from are up 394% from 2001 (pre-WTO accession). U.S. imports from China account for 21.6% of overall U.S. imports in 2017.
These are impressive statistics, but what real story do they tell? Well, for one, when the Trade Representative notes that ‘imports from China account for 21.6% of overall U.S. imports in 2017, does he include iPhones in that calculation? Apple assembles iPhones in China via a contractor called Foxconn. Foxconn has plants all over the place, not just China and parts for iPhones may very well come from Thailand or the Check Republic. Is an iPhone a Chinese product considered an import from China? China has established social processing zones also known as export processing zones (EPZs) where foreign corporations like Apple can come and set up shop without paying all those annoying local taxes while, in many instances, ignoring health and safety regulations and paying very low wages. Some of these EPZs are huge encompassing whole cities and surrounding areas. EPZs exist in many parts of the world we used to call the ‘Third World.” They are where our toys, clothes, and a myriad of other products are made and/or assembled. All of these products are ‘made’ by American or Canadian manufacturers, who now maybe should be called importers, but they still call the shots in every way. The automobile industry assembles cars here and there but the parts come from all over the globe. Engines can arrive at an assembly plant in Québec or Michigan ready to be dropped into a car, so are all drive train parts. Body parts can be pressed in Mexico and batteries can also come from there. There is no such thing as a “Canadian” car. Trump either knows this and doesn’t care or has it in for the  auto sector for some reason. I wonder if Trump has done the political economic calculus on his tariff plans for the ‘Canadian’ auto industry or if he just wanders off flying by the seat of his pants making decisions that are clearly arbitrary. It’s been well established that putting tariffs on ‘Canadian’ cars will put a significant dent in the profits of American car companies. Trump doesn’t seem to mind. Maybe he thinks it’s fake news. Some people have argued that Trump is just trying to force American corporations to manufacture their products on American soil. The fact is, that horse has already left the barn and there’s no way of getting it back, even if plants could retool. It used to be that the Ford plant in Dearborn, Michigan imported from around the US and abroad all the raw materials required to build a car, manufacture the parts and assemble the cars on site. That is no longer the case and hasn’t been since the creation of shipping containers and the need to acquire parts more cheaply than possible from American sources only. ‘American’ cars are manufactured all over the world. Capital, like the weather, ignores borders. We live in a global world with a global economy. The existence of nation-states or countries is still a fact because taxes need to be collected and passed on to the corporations and workers need to be managed. So far, it seems better to do that locally than globally. That may very well change and there are signs that it is. Trump’s Americans are not happy about the decline of their precious country, but their world is not contained within their borders and the sooner they realize that the better.

The “Canadian Economy?”

Following my last post where I look at Statistic Canada’s analysis of intergenerational income in Canada without coming to any conclusions, today, I intend to make one specific point. That point also relates to a Statistics Canada post today on labour productivity in Canada.

http://www.statcan.gc.ca/daily-quotidien/161202/dq161202b-eng.htm

The point I want to make has already been make frequently enough. Harold Innis, the pre-eminent political economist who worked at the University of Toronto and who died in 1952 and his mentor and predecessor, Thorstein Veblen, the even more pre-eminent economic historian who taught in various American universities and who died in 1929 both in their own ways decried the use of statistics on a purely national basis. The transnational nature of corporate power and control has been studied carefully by scores of scholars over the decades. See in particular the work of William Carroll at UVic and the network of scholars with whom he is associated worldwide. In my own dissertation (1981) I argued following Innis that the weather doesn’t stop at national borders, nor should statistical analysis.

In an age where corporations are spread all over the globe and where a head office may be in one country, research and development in a couple of others and commodity production in several others, how does it make sense to talk about the ‘Canadian’ economy? If StatsCan wants to get with the times it needs to begin to follow corporations in the various parts of their businesses wherever they happen to be. It’s telling that the former Canadian Manufacturers’ Association is now the Canadian Manufacturers’ and Exporters Association. With the massive reductions in value-added production in Canada over the past half century, the concept of ‘Canadian’ manufacturing is losing its relevance. This is even more true when we consider that the extractive industries in Canada, especially in the petroleum industries are 95% under foreign control.

There is no such thing as the Canadian economy. The sooner we accept that and change our patterns of gathering data the sooner we will get an accurate picture of the global reality of ‘the economy.’ Of course Statistics Canada is there to serve the Canadian government so it’s by it’s very nature political. Harold Innis warned decades ago that scholars should not let politicians lead them around by the nose. It seems like that’s exactly what has happened for a long time now and is still the driving force of data collection in StatsCan.

I deal with this topic in several posts. Check my archives for more.

The power of what we think is true or: Marx was a dumbass, everybody knows that! With a commentary by Paul Whyte, political scientist and former colleague.

-This is a blog post which appeared here on November 17th, 2015. A former colleague at NIC, political scientist Paul Whyte, wrote a response to the post below but for some technical reason was unable to leave a commentary. I respect his knowledge of Marx and his capacities as a teacher so I’ve decided to repost my November 17th post with his comments in tow. 

Please read his comment if nothing else. They follow my post. 

 

I write. I used to teach. I suppose that in some individual cases I may have even convinced a few people to change their minds about the way they perceived the world. Mostly my efforts are and were in vain.

Our dominant ideologies around possessive individualism, the nature of countries and what we value in life are so powerful as to frustrate and flummox the efforts of the most competent of teachers to get people to change their minds about anything.

I’ve changed my mind a number of times in my life but generally in line with added knowledge gained from reading and researching writers and authors who compelled me to see beyond what I had previously accepted as true. I came to understand fairly early in my career that there is no absolute truth, only tentative truth which must be abandoned when confronted with superior ways of explaining things.

For the first few years of my career as a sociologist I was a Marxist through and through. That early dedication to Marx’s work was soon tempered in many ways by the works of Harold Innis, Thorstein Veblen, Emile Durkheim, Sigmund Freud, Thomas Szasz, R. D. Laing, Erving Goffman, Ernest Becker, Otto Rank and many others. It’s been a ride. Although I’ve gone beyond Marx in many ways, I still often come back to one of Marx’s aphorisms about history in which he said (and I paraphrase): Human history will begin when we stop being so barbaric towards one another.

He was an optimist who actually believed that this would come to pass with the eventual eclipse of class society, a time in which there would no longer be any reason to kill and exploit because of the rise of technology and the elimination of labour exploitation.

Faced with the litany of accounts of death and destruction perpetrated by groups of people over the face of the earth going back millenia and it becomes difficult to accept Marx’s promise. I also being an optimist agree for the most part with Marx on this especially given globalization, the concentration of capital, the erosion of national sovereignty and the degradation of the natural world. These aren’t particularly uplifting processes for me, but they all point to a time in the future where capital will do itself in by increasingly attenuating the profit margin.

Strangely, I write this knowing full well that the vast majority of people who on the off chance might read this will not have read Marx and will have no idea of what I’m writing about here. People are generally quick to dismiss ideas that don’t agree with their preconceived notions about things. That’s certainly true when it comes to Marx’s work. People can easily dismiss Marx (and most other fine writers in history) by thinking they know what Marx (and most other fine writers in history) argued and can therefore cheerfully scrub him (and the others) from their minds. Or they think of themselves as anti this or that, in Marx’s case ‘anti communist’ so that anything that Marx argued just cannot be ok. Mind shut, let no light enter.

One of Marx’s most important ideas was that the division of society into classes would inevitably be relegated to the dustbin of history and along with it barbarism of all kinds. I like that idea, but ‘inevitably’ in this context will probably still be some time in the future. There’s plenty of time left for ignorant, highly suggestible “cheerful robots” (a term from C. Wright Mills) to commit mass murder or other kinds of atrocities in the name of eliminating the evil that they feel is blocking their prosperity or their road to heaven.

Probably the most influential writer for me over the last 40 years of my career has been Ernest Becker.  His little book Escape From Evil published in 1975 after his untimely death in 1974 of cancer at the age of 49, has most profoundly influenced my way of thinking and seeing the world. Escape from Evil, in my mind contains all the knowledge one would ever need to explain the bloody massacre in Paris on November 13th or all the other atrocities ever committed by us towards others and vice-versa over the last 10,000 years, or for the time of recorded history, and probably even further back. It’s all there for anyone to read. But people won’t read it and even if they do, they will read it with bias or prejudice and will be able to dismiss it like they dismiss everything else that doesn’t accord with their ideology or interests. And there’s the rub.

It’s people’s interests rather than their ideas that drive their capacity to change their minds. Change the way people live and you just may change the way they think. It doesn’t work very well the other way around.

Given Marx’s long term view on barbarism and senseless violence we cannot hope for much in the short term. We just have to wait it out. Of course our actions speak louder than our words, so within the bounds of legality, it’s not a bad idea in my mind to oppose talk that can incite some unbalanced people among us to violent action. It’s also a good idea to support peaceful solutions to conflict rather than pull out the guns at the first sign of trouble. Violence can easily invite violence in retaliation. We can resist that. It’s tough when all we want to do is smack people for being so ignorant and senselessly violent, but we can forgive rather than fight, tough as that may be. Turn the other cheek as some historical figure may have said at one point a couple of millenia ago.

Paul Whyte’s comment:

We will be severely challenged in the years to come to keep our heads as globalization increasingly devalues our labour and the concentration of wealth makes for more and more poverty. Sometime, somewhere we will have to say enough is enough and mean it in spite of the forces trying to divide us. We can regain our humanity even though it’s tattered and in shreds at the moment. It’s either that or we won’t have much of a future on this planet.

I too taught – actually alongside you for close to 30 years! Our disciplines were different [mine were Political Science and Introductory (Western) Philosophy] but shared a common past and crisscrossed each others field of expertise. We were, and still are, passionate about knowledge and driven to explore and share with others, primarily students and colleagues while working, but quite frankly anyone who so much as feigned an interest in the things that captivated us. I write also -surprise, surprise! [cheap seque to invite you to check out my new blog site at paulswhyte.com]. Whether our individual efforts prove to be in vain is really for others to judge and regardless of the answer, we/I must admit we were driven to it and not for any accounting of the number of ‘conversions’ we made [and not even for the fame and fortune!].

   “Men make their own history, but they do not make it as they please; they do not make it under self-selected circumstances, but under circumstances existing already, given and transmitted from the past. The tradition of all dead generations weighs like a nightmare on the brains of the living.” K.Marx

It is true to acknowledge the existence of a dominant ideology within society, but freedom of thought arises from the critical analysis of those underlying oftentimes philosophical thoughts and values, questioning their truth especially within a historical framework. History is littered with ‘dominant’ ideologies that were transformed and/or deposed. It may also be true for example as you state “that there is no absolute truth” but that itself is a historically contingent claim. Our inability [to date] to assert ‘an absolute truth’ does not necessarily negate its existence, but simply denotes only our present limitations to human knowledge.

The trajectories of our academic careers are remarkably similar. My early exposure to the writings of Marx, limited like every other English-speaking student/scholar of our generation by the sheer lack of translations of much of his work into English (now it is all available) was nevertheless profound and revelatory. My appetite became voracious leading me to graduate schools in the UK and a lengthy dissertation on Marx’s theory of revolution and the SDF in late 19th c. British politics.

I concur wholeheartedly with your statement about the gains that accrue from a lifelong practice of reading and research. The list of authors whose paths I have crossed now seems legion. Has my earlier career’s affection, and more importantly, affiliation to the Marxist viewpoint wavered – yes many times; altered – not fundamentally; been abandoned – never. Marx’s detailed and nuanced historical materialist conception, particularly as applied to industrial capitalism, seems more accurate today (as you say) in the expansion of globalization and the widening income inequality gap.

I likewise see Marx as an optimist about the unfolding of human history. The class struggle is at the very core of his theory and ‘projections’ about its “inevitable” disappearance [in a future communist society] still strike me as essentially correct. Where I think I depart from you, and many others as well, is in the hope or assertion that such a transformation can ultimately be achieved by peaceful and democratic means. Greater “participatory democracy” might be an advance on the current situation, but I am reminded of the earlier hope placed in the trade union movement to significantly change the overall conditions of the many in a capitalist economy, and we both know how that has turned out.

You are right to state that peoples’ material interests are foundational, and consequentially that their ideas are forged within the context of their particular class affiliation. Most are blinded/hoodwinked from this truism by a dominant ideological lens, representing as Marx said

  “The ideas of the ruling class are in every epoch the ruling ideas, i.e. the class which is the ruling    material force of society, is at the same time its ruling intellectual force. The class which has the means of material production at its disposal, has control at the same time over the means of mental production, so that thereby, generally speaking, the ideas of those who lack the means of mental production are subject to it.” [German Ideology]

This creates for our time promotion of the merits of possessive individualism and the fruits of capitalist accumulation. 

Take courage and write/speak on because as one of Canada’s greatest contemporary troubadours [Bruce Cockburn] said so eloquently, “but nothing worth having comes without some kind of fight, got to kick at the darkness ’til it bleeds daylight”.