Will somebody please tell me where all the capitalists have gone? But don’t be so quick to answer. You probably want to say something like: “Just turn on CNBC and you can see Larry Kudlow shouting about capitalism every day.” But I believe that Kudlow and his ilk are something entirely different.
Consider this quote from Harvard historian Niall Ferguson’s book “Civilization: The West and the Rest” (Kindle Location 4269):
“Capitalists understood what Marx missed: that workers were also consumers. It therefore made no sense to try to grind their wages down to subsistence levels. On the contrary, as the case of the United States was making increasingly clear, there was no bigger potential market for most capitalist enterprises than their own employees.”
In 1914, Henry Ford doubled the wages of his workers. That’s the kind of capitalism that defeated Marxism.
But today? All I see are “capitalists” doing the exact opposite: replacing $23 per hour American workers with $2 per hour Asian or Mexican workers by offshoring factories and offices, and importing millions of immigrants.
I submit to you that those are not capitalists at all. People like Larry Kudlow are really globalists and plutocrats. And we are witnessing the historical transformation of the USA from a capitalist nation into a South American-style plutocracy.
Perhaps you think that I am exaggerating? Well, consider this quote from geopolitical expert George Friedman’s book “The Next 100 Years” (page 120):
“In the 1920s, the world was in the midst of an accelerating population explosion. … The United States, facing an onslaught of potential immigrants, decided to limit their entry in order to keep the price of labor – wages – from plunging.”
Back then, both our business leaders and political leaders made sure that workers were well-paid. The result was the rise of the mighty American middle class. And those middle-class workers did indeed spend their wages, creating in the process a vast consumer market that became the economic engine of the world.
And today, not only do our business leaders seek to “grind down wages”, but our political leaders make it easy via record immigration and free-trade treaties with low-wage nations.
Whether or not the USA has a middle class at all is a political decision. And currently the decision is: no. It has been decided that the middle class will be feed through a wood-chipper that spits out vast profits for multinational corporations via global labor arbitrage and mass immigration.
Capitalist America, R.I.P.