Thought this was an interesting analysis, though I think it needs to be taken with a bit of a grain of salt (I think it’s power is what is qualitatively describes rather than precise numbers, and I think the author might even agree with me).
I’m always on the lookout to see it quantified how much the average American benefits from imperialism. My guy says if the US was unable to exert hegemony, the US would experience at least what Russia experienced in the 90s. These numbers align with that; and this is only talking about dollar hegemony and not, for example, the US using military pressure, sanctions, or other methods for extracting cheaper resources and goods from the global south.
That said, I’m not sure you can just run a regression and get your answer. I don’t see how you can isolate the US losing dollar hegemony without it then creating an uncountable number of secondary effects. All this stuff is deeply interconnected. But that said, I think this does a good job of highlighted at least in a qualitative sense just how much Americans benefit from dollar hegemony, and how losing that would be huge problem for the US economy.
That money is stolen by middle men and scammers anyway i never see it, if us hegemony was gone and we had a rational economy would i really notice the money?
Yes. Because in short consumer price inflation is like a novel thing for the american population, whereas it’s the ever normal in the global south. Of course the capitalist class makes the most of the USD hegemony, but there’s a certain panem et circenses policy where the US can just subsidize gas, energy and food costs to no impact to it’s financial credibility. The US government could do the same with health care and education, it just chooses not to.
In a way since you live in the core of the imperial core you remain an exploited worker, but there are extra layers of exploitation elsewhere. That’s why people can go live in your country, get paid less than the legal wage, and still send remittances home.
all of these costs are absolutely dwarfed by the medical, legal, rent, and debt expenses americans pay, I don’t really get why discussion like this is happening in the context of average income figures?? in a country with such extreme inequality
I also have to pay rent, a health plan, education fees, numerous taxes and so on but if you convert my costs to dollars they’ll seem like a pittance to you. Moreover, inflation in education and healthcare are something that exploded in the last generation. Nobody is disputing that, as a matter of policy, financialization lead to the american state deciding to exploit its population more and more.
The point is that not every benefit from USD hegemony has been taken from the workers. At least not yet. For one, since the US doesn’t have to actually pay for its imports every other administration can campaign on cutting taxes. Sure, you might say that most of those tax cuts go to the rich. Well, here in the global south we have to acquire dollars to pay our commitments, otherwise our credit rates and currencies collapse. Meaning that every administration has to raise taxes, primarily on the poor.
At the end of the day the question is: if USD hegemony goes away, who’s going to pay for that shortfall? Will it be the elites, who spent the last 40 days reproducing themselves by creating new ways to financially exploit the population? Will it be the MIC? Or will it be workers via consumption tax hikes and the further privatization of social security? It would have to be a combination of all three and more, but we know who’s going to get the short end of that stick.
I think the problem comes if the US loses the hegemony but keeps the middle men, there’s going to be a lot of suffering it’s probably going to get channeled into fascism. “Those people” (take your pick) will be blamed for national decline, instead of correctly identifying capitalism and imperial blowback as the cause
