Workers-Control-Over-Prod
2nd October 2012, 07:42
The Question that has bothered me and many others, is the supposed nationalist arrogance portrayed by (it seems, mainly) German Capitalists and the stubborn german economic intelligentsia to continue down the imperialist path of running national trade surpluses at the expense of the rest of Europe.
Why this attitude?
First we have to see where the current German economy and Bourgeoisie came from.
After Nazi Germany was defeated in WW2, with *20% of productive capacity being destroyed (mostly from ground invasion and not, how mostly assumed, through US and UK air bombing, which is mainly directed at civilians and lowering morale), the German nation divided into West and East Germany, into Capitalist and Socialist, there was the question of War reparations due.
Germany was still divided into occupied sectors when the decision was made that the Soviet Union shall get 100 Billion Mark in War reparations. The Allies insisted that the USSR claim its reparations from its occupied territory in the east. It did, and took 33% of the occupied territory's Industrial means of production within the time period of 1945-1946. When the US (and UK, France) decided to create a German State in their occupied territories in May 1949, it caught the Soviet Union by surprise. The Soviet Union did not respond, furthering its calls for German unification for months and remaining the Eastern part of Germany under Soviet Occupation. The West German US/UK/France dictated Constitution included a claim to Annex the Soviet territories and forced the USSR to allow the SED (Socialist Unity Party) to form a German state, the GDR.
By the early 1950's the former occupied territories and now GDR had paid over 20 Million Mark in reparations with a yearly output of under 100 billion Mark in the 1950's. The GDR paid 98% of all existing War reparation dues for Germany's crimes. This severely crippled the economy, and lead to a downward spiral with 3 Million (mostly professional workers) emigrating to West Germany from 1949 to 1961, with an estimated extra losses to the GDR of 36 Billion Mark.
After the West German Capitalist State BRD was founded, the Marshall plan executed, it had none of the reparations to pay like the GDR due to US imperialist strategy to weaken the position of Socialism and the USSR. While the GDR was paying reparations over 20% of its yearly economic output, the BRD was profiting from extra skilled labor from East Germany, in no small sum as was pointed out before.
But German Capital also profited in other ways, more interesting and determinate, "unconscious" ways. The BRD economy never took off until the 1950's.
From July 1950 to July 1953 the United States (one of the few national economies not severely diminished by War) played war in Korea, causing millions of deaths. As Andrew Kliman points out (and as George W. Bush reassures us), "War" and the necessary War producing economy, is "Good for the economy!" (as Bush so wisely pointed out). This War Capitalism effects a Destruction of Capital Value of the normal economy; as government contracts pull capital away from the production of consumer needs (leaving normal consumer-products producing factories sitting still, firing workers [that most likely had debt and get put in a uniform to die, hence cancelling their debt = positive for Capitalism], companies going bankrupt, cancelling debts and lowering prices of the whole economy, causing the rate of profitability of investment to rise) and funnels capital towards the 'war effort'.
This national american economic situation caused a global shortage of consumer goods. The goal of the allies after WW2 was in fact to keep Germany from becoming an economic dominant country in Europe again. After the Soviet Union's actions to reparations, hence weakening of the GDR and directly helping West Germany; after the US' imperialist government doctrine; after Europe's economy had been destroyed in large parts (Spain's nearly completely after civil war then WW2, Germany's quite a bit, France's as well), and Europe's war machine production stripped through peace treaties and disarmament; this led to an almost automatic outcome of rise of European economies, and West Germany at the helm.
West German Capital applied its skilled workforce, beneficial post-war conditions and low wage situation after the War to fill the global shortage of consumer products and evolved into a top producer of cars, chemicals and other consumer products, with capital goods naturally coming in later as well.
When the GDR was overthrown in 1990, West Germany got another boost from acquiring 16 million more workers who spoke the same language, were highly skilled (average education levels were higher in East Germany than West Germany) and were paid on average 2/3 of the wages as their west German colleagues. The integration of the East German economy into the West was a disaster, a complete sellout at "garage sale prices" (Parenti). Even though it was a disastrous integration, it further pushed and ingrained West German Capital towards the path it had followed, benefited from US wars in Korea and Vietnam. Germany became an increasingly aggressive Imperialist State with unification, leading the imperialist propaganda and bombing war against the last European remnant of Socialism, Yugoslavia.
In the 1990's, Germany might have been called the "sick man of Europe", but that was mainly due to its horrendous integration with East Germany and did not affect its absolute exports, they kept growing, kept enforcing the German bourgeoisie's dogmatic policy towards keeping the "Standort Deutschland" industrial export King position. The 1990's saw increasing attempts by France's Capital to tie itself closer to the German economy, leading to the attempts towards the Euro currency union. Germany agreed (1999 i think) but insisted that Italy must join, as the northern Italian (consumer industry) automobile sector was very competitive to Germany. Italy blatantly faked its debt record (which has still not been publicly revealed), and Greece did the same with help from Goldman Sachs to get into the Euro-zone.
The German Capitalists have gotten so used to exporting due to the material conditions of the latter half od the 20th century, that the whole intelligentsia and economic institutions seem to be unable to understand that if Germany holds on to its "traditional" trade surplus, other countries must run a deficit, especially since majority of German exports are non-capital, but consumer goods.
It is an absolute impossibility to move the German bourgeoisie away from their imperialist policy of constantly running Trade Surpluses. It is solemnly ingrained into the german intelligentsia and economics profession. Nearly all economic books in German universities subscribe to the Neo-Classical economic view, the change we can see in American academia towards Keynesian economists becoming more dominant is unthinkable so long Germany continues to run its trade surplus and successfully dominates Europe. This policy will continue so long any Capitalist parties are in power, even the SPD and Green party are completely enshrouded in the neo-classical hogwash.
This hegemony within the Bourgeoisie is one of such force and long tradition (within all and every single pro-Capitalist party) that it spells good strategic chances for socialist parties like Die Linke (if the rightists of the party remain the minority). This is good news in the long run, because if the crisis hits Germany within the next twelve months (before the parliamentary/"Presidential" elections in October of 2013) there could be a large chance that an "opposition" Party like the SPD get enough percent to oust the Conservatives, which would prove itself to be influenced by the (destructive, anti-social) neo-classical hegemony within the German Bourgeoisie and make the public see that it is not a real people's party.
*Greece's production has decreased by 25% in the last four years. But this comparison between Nazi Germany's Wartime industrial losses and Greece should not be of large shock to anybody as most of Germany's economy was a war-time economy throughout the 30's and 40's (and we would never want to stop our enemy from actually having guns to prolong "War" which is "good for the economy"...) while Greece imported most of its military machines an capital goods from northern Europe to where its economy is a heavily dependent consumer-goods and service one, heavily reactive to economic crises.
Why this attitude?
First we have to see where the current German economy and Bourgeoisie came from.
After Nazi Germany was defeated in WW2, with *20% of productive capacity being destroyed (mostly from ground invasion and not, how mostly assumed, through US and UK air bombing, which is mainly directed at civilians and lowering morale), the German nation divided into West and East Germany, into Capitalist and Socialist, there was the question of War reparations due.
Germany was still divided into occupied sectors when the decision was made that the Soviet Union shall get 100 Billion Mark in War reparations. The Allies insisted that the USSR claim its reparations from its occupied territory in the east. It did, and took 33% of the occupied territory's Industrial means of production within the time period of 1945-1946. When the US (and UK, France) decided to create a German State in their occupied territories in May 1949, it caught the Soviet Union by surprise. The Soviet Union did not respond, furthering its calls for German unification for months and remaining the Eastern part of Germany under Soviet Occupation. The West German US/UK/France dictated Constitution included a claim to Annex the Soviet territories and forced the USSR to allow the SED (Socialist Unity Party) to form a German state, the GDR.
By the early 1950's the former occupied territories and now GDR had paid over 20 Million Mark in reparations with a yearly output of under 100 billion Mark in the 1950's. The GDR paid 98% of all existing War reparation dues for Germany's crimes. This severely crippled the economy, and lead to a downward spiral with 3 Million (mostly professional workers) emigrating to West Germany from 1949 to 1961, with an estimated extra losses to the GDR of 36 Billion Mark.
After the West German Capitalist State BRD was founded, the Marshall plan executed, it had none of the reparations to pay like the GDR due to US imperialist strategy to weaken the position of Socialism and the USSR. While the GDR was paying reparations over 20% of its yearly economic output, the BRD was profiting from extra skilled labor from East Germany, in no small sum as was pointed out before.
But German Capital also profited in other ways, more interesting and determinate, "unconscious" ways. The BRD economy never took off until the 1950's.
From July 1950 to July 1953 the United States (one of the few national economies not severely diminished by War) played war in Korea, causing millions of deaths. As Andrew Kliman points out (and as George W. Bush reassures us), "War" and the necessary War producing economy, is "Good for the economy!" (as Bush so wisely pointed out). This War Capitalism effects a Destruction of Capital Value of the normal economy; as government contracts pull capital away from the production of consumer needs (leaving normal consumer-products producing factories sitting still, firing workers [that most likely had debt and get put in a uniform to die, hence cancelling their debt = positive for Capitalism], companies going bankrupt, cancelling debts and lowering prices of the whole economy, causing the rate of profitability of investment to rise) and funnels capital towards the 'war effort'.
This national american economic situation caused a global shortage of consumer goods. The goal of the allies after WW2 was in fact to keep Germany from becoming an economic dominant country in Europe again. After the Soviet Union's actions to reparations, hence weakening of the GDR and directly helping West Germany; after the US' imperialist government doctrine; after Europe's economy had been destroyed in large parts (Spain's nearly completely after civil war then WW2, Germany's quite a bit, France's as well), and Europe's war machine production stripped through peace treaties and disarmament; this led to an almost automatic outcome of rise of European economies, and West Germany at the helm.
West German Capital applied its skilled workforce, beneficial post-war conditions and low wage situation after the War to fill the global shortage of consumer products and evolved into a top producer of cars, chemicals and other consumer products, with capital goods naturally coming in later as well.
When the GDR was overthrown in 1990, West Germany got another boost from acquiring 16 million more workers who spoke the same language, were highly skilled (average education levels were higher in East Germany than West Germany) and were paid on average 2/3 of the wages as their west German colleagues. The integration of the East German economy into the West was a disaster, a complete sellout at "garage sale prices" (Parenti). Even though it was a disastrous integration, it further pushed and ingrained West German Capital towards the path it had followed, benefited from US wars in Korea and Vietnam. Germany became an increasingly aggressive Imperialist State with unification, leading the imperialist propaganda and bombing war against the last European remnant of Socialism, Yugoslavia.
In the 1990's, Germany might have been called the "sick man of Europe", but that was mainly due to its horrendous integration with East Germany and did not affect its absolute exports, they kept growing, kept enforcing the German bourgeoisie's dogmatic policy towards keeping the "Standort Deutschland" industrial export King position. The 1990's saw increasing attempts by France's Capital to tie itself closer to the German economy, leading to the attempts towards the Euro currency union. Germany agreed (1999 i think) but insisted that Italy must join, as the northern Italian (consumer industry) automobile sector was very competitive to Germany. Italy blatantly faked its debt record (which has still not been publicly revealed), and Greece did the same with help from Goldman Sachs to get into the Euro-zone.
The German Capitalists have gotten so used to exporting due to the material conditions of the latter half od the 20th century, that the whole intelligentsia and economic institutions seem to be unable to understand that if Germany holds on to its "traditional" trade surplus, other countries must run a deficit, especially since majority of German exports are non-capital, but consumer goods.
It is an absolute impossibility to move the German bourgeoisie away from their imperialist policy of constantly running Trade Surpluses. It is solemnly ingrained into the german intelligentsia and economics profession. Nearly all economic books in German universities subscribe to the Neo-Classical economic view, the change we can see in American academia towards Keynesian economists becoming more dominant is unthinkable so long Germany continues to run its trade surplus and successfully dominates Europe. This policy will continue so long any Capitalist parties are in power, even the SPD and Green party are completely enshrouded in the neo-classical hogwash.
This hegemony within the Bourgeoisie is one of such force and long tradition (within all and every single pro-Capitalist party) that it spells good strategic chances for socialist parties like Die Linke (if the rightists of the party remain the minority). This is good news in the long run, because if the crisis hits Germany within the next twelve months (before the parliamentary/"Presidential" elections in October of 2013) there could be a large chance that an "opposition" Party like the SPD get enough percent to oust the Conservatives, which would prove itself to be influenced by the (destructive, anti-social) neo-classical hegemony within the German Bourgeoisie and make the public see that it is not a real people's party.
*Greece's production has decreased by 25% in the last four years. But this comparison between Nazi Germany's Wartime industrial losses and Greece should not be of large shock to anybody as most of Germany's economy was a war-time economy throughout the 30's and 40's (and we would never want to stop our enemy from actually having guns to prolong "War" which is "good for the economy"...) while Greece imported most of its military machines an capital goods from northern Europe to where its economy is a heavily dependent consumer-goods and service one, heavily reactive to economic crises.