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Financial capital has dominated the capitalist system in the United States since the election of Regan
in 1980, abandoning national industrial growth. In a historical sense, it has lost its right to run society.
It is the real enemy to change, standing in the way of mass industrial development and holding the
world back from taking care of its own people. Interestingly, financial capital itself in Western Europe
is in trouble. Germany is the only exception since having developed the welfare state to protect itself
under capitalism, it has maintained itself in a multi-parties political system, representing various
economic sectors in its economy. Furthermore, sensing world changes among former undeveloped countries,
they have established economic relationship with its leading elements, where China is its economic leader,
with India, Brazil, Russia, and South Africa joining in the formation of an international organization
called BRICS , which has called for an international meeting of all former undeveloped countries in
April of 2012 to form an economic unity, working with each other in trade and investment with no military
involvements. This is a second pole in a bipolar world that is growing, picking up industrialization and
with the prospect of surpassing productivity in Western capitalist countries, where only one-third of
the world population resides.
Obviously the world is changing – the only thing that would stop it is a war. There seems to be only
one country which is conducting war on a global scale. Sorrowfully, it is the USA, which is not even now
getting financial support from Western European nations in the NATO that is dominated by the USA (incidentally,
the New York Times wrote about that, and they agree). Just think about how federal money (social capital),
now spent for destruction, could be used to revive industries and create jobs, which will reduce the
denigration of life and create the conditions for improving humane living standards. Such an accumulation
of capital in the federal government, as a result of reducing Pentagon budget and the conduct of wars,
becomes accumulated social capital to be deployed in high-tech as well as protecting the country and
its terrain and services.
But, private capital will still be involved, along with social capital in the hands of governments, and
this combination will function to continue the development of industries with the objective of taking care
of the needs of all people. In fact, Karl Marx said, after noting class differences in France that
"the Bourgeoisie will continue for a long time after the establishment of a socialist economy",
appreciating the creativity of private capital but making efforts to harmonize the cooperation of
various economic sectors. Hence, one might say that the continued growth of industries will depend upon
national economic planning rather than individual capitalist enterprises and politics. In an economy structured
with governmental and private finance guided by a national growth plan, such a society includes
both privately-owned enterprises as well as government-financed enterprises, oftentimes in joint-ventures,
but together functioning for the growth of industries and the achievement of the national economic plan,
outside of the domination of private capital.
China is on that road, though it faces many contradictions in a society still plagued by feudal relations
and wage-labor relationships, together with the vision of building the first high-tech industrial economy
in the world under national planning. Do they have problems? More contradictions than
any other country ever – because they have people with human natures reflecting productive relationship
of different eras that are being molded into harmony, a process which is not an easy task and
I want to really take my hats off to how China's leaders are functioning – with Hu JingTao creating
the tone of peaceful foreign relationships and Wen JiaoBao dealing with domestic questions, and both,
leading the development of the next five-year plan which never has, nor will include the development
of armed forces other than defensive necessities, because everybody knows where the threat comes from...
and it is not, the European counties.
China has announced that by 2016 their national production will equal that of USA [4a][4b] and then, surpass it.
When one considers the fact that the Chinese are spending somewhere rising from 90 billion USD per year,
how much of the government's income that would be consumed in building offensive military forces
is being saved and used as social capital for productive purposes? This is a good example of why they
are able to develop their economy so rapidly to become the second largest economy in the world and
then becoming the largest in the world, since they have to produce three times as much as the USA in
order to take care of their population. One might note that this is the development of a harmonious
society – their current objective being the use of private and social capital to achieve their national plan.
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Note 3: See BRICS Information Centre, University of Toronto at http://www.brics.utoronto.ca/
Note 4a: See "2016: when China overtakes the US", The Guardian at http://www.guardian.co.uk/commentisfree/cifamerica/2011/apr/27/china-imf-economy-2016.
Retrieved April 27, 2011.
Note 4b: See "US still ahead of China GDP by 2016: IMF spokesman", Want China Times at
Retrieved April 26, 2011.