And that isn’t going to last, take advantage of it while you can, America.
You can build domestic industry and jobs without this dumb shit. It’s just going to reduce the purchasing power.
re-capitalization may seem alluring to American nationalists but its actually dumb as hell.
China and India are recapitalizing to good effect. Russia is recapitalizing, and that’s why the country hasn’t collapsed under the weight of their stupid war. Germany is capitalized, and that’s why it can bully everyone else in the EU except France.
Meanwhile, the UK is just six banks in a trench coat and their economy is disintegrating underneath them. Saudi Arabia is trying to build out capital in excess of its oil drilling and desalination systems, but all MBS knows how to do is build Monaco over and over again in a big line. Hong Kong has fucked itself, because all the business assets are in Shenzhen and western nations no longer need a UK-backed financial bridge into China. Japan is increasingly just Tokyo plus Alabama, as all the capital wealth concentrates in a handful of metropoles.
Everyone else in the world does the actual work, Americans just need to do their part: consume
So much of what gets “consumed” from abroad is waste. Wasted textiles. Wasted foodstuffs. Disposable packaging and one-use commodities. Wasted energy from A/C cooling empty buildings and cars lined up in five mile long traffic queues. Technology that’s run at high capacity solely to put up fake shit on the internet. Technology that’s designed not to last longer than the next marketing cycle. It isn’t even stuff Americans get to enjoy. It’s Instant Trash that just molds in a factory somewhere. Grain during the potato famine. The Grapes of Wrath.
Americans have a bunch of jobs that desperately need doing - education, health care, infrastructure maintenance, logistics, waste management - that they don’t want to pay anyone to do. Consequently, everyone runs off and gets jobs in finance and advertising, because that’s the only shit that pays. So we have more and more of Graeber’s Bullshit Jobs putting up numbers on the domestic economy while fewer and fewer people know how anything in the country actually works.
But to say Americans aren’t “doing work” is absurd. Americans are chronically overworked. They’re perpetually exhausted. They’re a miserable, wrung out, and depressed. They’re not idle. They’re wasted. Americans are working overtime to produce excess waste.
Replying rather than editing on extra to my comment but- very simplified (and with the disclaimer that I’m no scholar and I’m literally typing on my phone):
Capital =/= production or the real economy.
Capital =/= value (though it is a unit meant to approximate value and transfer it)
Imagine if the US creates a missile. Let’s say the production cost and valuation is… Uh, 100$usd. Let’s say that Russia produces the exact same missile, functionally and materially identical (though in reality Russian missiles are better than western crap because of capitalization, lol). It’s valuation and production cost is… 25$usd.
What is the difference, exactly? What is the 75$ difference? As a really shitty and lazy and probably somewhat flawed simplification- this is the “capital,” the “capitalization” you’re talking about.
This is how you get wonderful capitalistic… Capitalizations, like say, the US army spending over 36$k per garbage bin (look it up… Lmao). This is how you get the world’s most expensive and certainly the least cost-efficient healthcare system on the planet (and probably in all of history). This is how regurgitated capital (“capitalizations” or “financialization,” if you will) in the form of money lending, then interest paid to service the loan, and so on and so forth- metaphorical circlejerks of debt and transactions (“services”)
Anyways yeah, that’s about it (heavily and shittily simplified). Once again I heavily recommend looking up prof. Michael Hudson, prof. Richard Wolff, and the Geopolitical Economy Report.
Capital =/= production or the real economy.
I think someone else referred to this definition before. But
“Capital (goods)” = “those durable produced goods that are in turn used as productive inputs for further production”
What is the difference, exactly? What is the 75$ difference? As a really shitty and lazy and probably somewhat flawed simplification- this is the “capital,” the “capitalization” you’re talking about.
No, that’s the marginal cost.
What’s more, a Marxist “all else equal” analysis would say the $75 difference in cost is ultimately a labor cost + profit. One big reason why Russia can build artillery cheaper than the US is simply due to its limited number of middle men between raw materials and deployed weapon.
That inflates the raw labor cost (the US MIC procurement system is a jobs program that rewards inefficiency) and extracts an admin fee at every step.
But that price differential isn’t capital. It’s cost.
Am example of capital would be the mineral gathering operation used to create explosives. Another would be the machinery to create the bomb housing. Another would be the training school for the engineers who assemble the bombs.
You’re mixing up “capitalism” and “production/industrialization.” The two are not one and the same.
China and India are recapitalizing to good effect. Russia is recapitalizing
China and Russia are if anything, doing the exact opposite of what you claim; while Russia may be structurally and politically capitalist (and while China retains its market socialism, which is another spiel in and of itself) the developments ongoing in both are not the capitalization (privatization, financialization) of their economies, but rather the submission of capital to the interests of the state and the public good (in Russia’s case, its national security) and towards actual production.
What part of China’s cracking down on corruption and speculation (engaging in the controlled demolition of its real estate markets for instance) and engaging in even further state-led development sounds like “capitalization” to you? What part of Russia’s own return to 5-year plans, of its reindustrialization (of which a large part is the MIC- which by and large is state enterprise, not private), of the cracking down on the corruption and influence of the oligarchs (now that the west has so helpfully neutered them), and the return to domestic production and development rather than financial instruments and other grifts geared towards the transfer of wealth to the west sounds like “re-capitalization,” or rather, “further capitalization?” (Considering that Russia still is decidedly capitalist).
Meanwhile, the UK is just six banks in a trench coat and their economy is disintegrating underneath them.
Because the real “economy,” or rather everything people associate with and can tangibly interact with, was never truly capital (though capital certainly has considerable correlation, as a system built over it). The British economy is disintegrating because the “capital” you seem to assume Britain is lacking in, is actually present in overabundance (and was developed relative to the size and influence of the former empire and what plunder it could obtain). Britain is literally choking on, and drowning in its capital (inflation), while it’s bourgeoisie, to preserve the value of their capital (which has no inherent value in its own right), bleed the British society and true economy further and further dry, through their endless pursuits of their bottom lines, through their rentier behavior (landlordism, monopolistic behaviors/oligopolies, and through extracting what could be described as “rent” from the state in the forms of corporate welfare- particularly the MIC- regulatory capture and the maintaining of captive markets, and copious tax breaks). And of course, they also preserve their value of their capital, by taking it out of the sinking ship- by moving it into actual tangible assets, exchanging it for the currencies/capital of nations whose economies are not going into freefall, and which are not ridiculously overpriced (capitalized) bubbles ripe to burst.
Saudi Arabia is trying to build out capital in excess of its oil drilling and desalination systems
Saudi Arabia is another nation absolutely swimming in capital accumulated from its oil revenues; they have no need of ““building”” capital, they have no lack of it. What the Saudis are trying to do, is convert said capital into tangible assets and production- ie. actual value (of which capital is just an approximation and floating measurement of). They built what capital they have, off of such (natural) assets (obviously, oil), and are trying to prepare themselves for the transition past it, as well as develop actual productive forces outside of oil extraction (as that is the actual wealth of the nation- not capital, which is a fickle, unstable, and abstract measure of value).
I could go on further, but basically- capital =/= production. And Americans work, sure (a immense amount of it “bullshit jobs,” as from the sounds of it you’re aware). But the expansion of US capital and imperialism across the globe, the network of American “capitalization,” if you will- has literally priced the American working class out of existence (they still exist obviously- but it’s a miserable and withering thing).
The USD is kept artificially overvalued, allowing the US (particularly it’s corporations, but also the citizenry that have increasingly moved to “bullshit” largely unproductive jobs) inordinate purchasing power, something the US state and corporations abuse the utter hell out of .
US labor, being paid in the USD, is artificially overvalued- which is to say, it is prohibitively expensive and uncompetitive, and what manufacturing, agriculture, etc. exists is generally heavily subsidized so as to keep the gears of empire turning. Goods and services within the US are artificially overvalued (overpriced) due to the “capitalization” of the economy as well- everything in the US is “capitalized” to hell and back (and it is no more productive for it, oftentimes less). Tuition, healthcare, housing, food, consumer goods, etc… there are layers upon layers of “capitalization” in the US, of course not least of all through the “capitalization” of immense consumer and state debt (line goes up). None of this is “competitive” or “appropriately valued-” rather the opposite- and thus even marshalling the productive forces of the nation and moving past all the “capitalization” is a cartoonishly expensive and arduous hurdle.
I could go on further, but I’d simply recommend looking up the talks on economics on YT (or their writings, etc) by professors Michael Hudson and Richard Wolff, as well as the Geopolitical Economy Report among others for more information to set you on the right path.
You’re mixing up “capitalism” and “production/industrialization.” The two are not one and the same.
It sounds like rather, you’re confusing capitalization for capitalism. You don’t need to be capitalist to have capital, you do need capital to have industry/production.
It sounds like rather, you’re confusing capitalization for capitalism. You don’t need to be capitalist to have capital, you do need capital to have industry/production.
I don’t have the energy for this atm so will try to reply later (if anyone else wants to help me out go for it). But just… No, IMO (as said a bit out of it atm) this sounds incorrect.
Limited capitalization =/= capitalism, I agree (Dengism, or the NEP, etc. are examples of that). But I think we’d need to define what we mean by “capitalization” (the term which I was using since @BashfulBob@hexbear.net used it).
The definition from a quick google alone as an easy (+lazy, as said not quite up for it entirely- someone save me pls ) answer would be essentially… Accounting.
Thats understandably, not the context we were using (maybe innacurately, idk) the term “capitalization” for, given how it was first introduced into discussion (by @BashfulBob@hexbear.net ).
I was using it (and put it alongside the term in parentheses many times) as essentially- “financialization.”
I guess where I’m getting at is “financialization” is not a requirement for industrialization or production.
Also, of course, production (and thus actual value) and trade and/or the division of labor (“the actual economy”) and all can exist without capital, and predate capital. And I’d go so far as to say that capital (not just capitalism- but capital) is not a prerequisite for industrialization, though it is certainly the most efficient and viable mechanism to promote it thus far.
And even if we were to say that “all industry/production requires capital” - that does not mean that industry/production = capital. The two things are different, with the latter meant as something akin to a unit of measurement (and exchange) or the former.
As Marx said:
“Capital is dead labour, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks”
While I wouldn’t claim that labor = production/industry (though it certainly has far more correlation than capital and production), I think it demonstrates my point…
