Crisis within Capitalism

        Only a few decades back, the US imperialism-led capitalist world had been energetically drumming for free trade across the world  market without any tariff walls.  It would, they said, liberally open up newer markets riding to globalization to make the world live  harmony towards prosperity.

Drum beats are go to people of even so-called advanced capitalist countries . Now Globalization has turned  out to be  a dreaded phrase synonymous with joblessness, disparity etc.  Privatization has recently been equated with hell by French workers.  The same imperialist countries are making an about-turn and frantically imposing or counter imposing tariffs, calling for ‘economic nationalism’.  As imperialist chieftain, the US imperialists have termed their action while arm-twisting others with veiled or open threats.

When a nation imposes tariffs, a sort of tax, on imports to protect its domestic Industry 

from inflow of foreign goods and services and when foreign countries retaliate with similar trade protectionism, trade or tariff  war sets in,  escalates and finally reduces international trade.  The US imposed 25% tax on steel and 10% tax on aluminium imported from its capitalist-imperialist allies, the European Union(EU), Canada and Mexico since midnight, 31st My 2018.  Accompanied by “America First” slogan of the US President Donald Trump, these were preceded by tariff on imported washing machines and solar panels etc., which Trump had already slapped on China and South Korea  earlier this year.  The US also talked on levying a 25% tax on cars exported from the European Union, as also from Mexico and Canada.  

The Trump administration justified its act  with the argument that  since the US imported more from other countries  than the latter absorbed.  American goods, the US was suffering from  huge trade deficit 

which, in turn, has been bringing lots of  trouble to the American people for years.  He, however, did not fail to provide the US monopolists with huge tax-cuts because of the said deficit.  Tariff in Mexican cars were meant to force concessions in  the NASFTA (North American Free Trade Agreement) talks putting pressure on Mexico.  It may be recalled the illegal immigrants are causing the Americans loose jobs ‘ was another pet slogan riding on which Trump had won the presidency.  That made Mexico a target.  Besides Trump moved to launch long-promised punitive measures against $60 billion worth of Chinese goods.  On 6th July, Trump implemented 25% duties on about $34 billion Chinese machinery etc.

Chinese goods are found cheaper as cost of production  is low because of its three decade long  socialist  background.   The US market is thus flooded with imported Chinese gods,trade deficit of US with China, 

thus rising to around $375 billion, almost 66% of its aggregate trade deficit.

Cyber expionage, including illegitimately stealing intellectual property from other countries, particularly the USA, is the third leg of the stool in  the US case against China.  Here, it cannot be missed that China, now a  full-fledged capitalist county with enough economic musele and hegemonic aspirations are tough competitors in the global capitalist market and they, like all other capitalist-imperialist countries do not always play by the rules, rather practice all the malpractices of the imperialists.   Then again,  who among the capitalist-imperialists are not doing that?  It is not yet three months that the world was shocked when  companies  like Cambridge Analytica or Face book were accused of data stealing from all over the world and the US giant corporate chief Zuckerberg had to seek apology in public for that.  Now the same US is crying hoarse to accuse others of ‘stealing’!                  Extracts from Proletarian Era, India

 

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