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Popularity 1Viewed 2560 times 2012-11-6 03:08 |Personal category:economy| economist, needs, learn, history

Normal 0 Comment onTime for the cash cows to find new growth pastures” Published in China Daily Updated: 2012-11-02 08:50 By Zhang Jun (China Daily)

I am not an economist but the people living in capitalist controlled economies are in revolt against neo-liberalism; in South America where neo-liberalism was first introduced a revolution has been underway for more than a decade that is re nationalizing everything from banks to public services, industry, and natural resources on the road to a new socialism for the 21st century; these are the only people from capitalist countries who have been enjoying a rising standard of living and growing GNP since before the meltdown.

Neo-liberalism reduced the populations in South America to a state of serfdom and wage slavery that the Chinese fought a bloody revolution to end; and it has been reducing the standard of living in Europe and North America since the 1970s. When the people in North America began to revolt in the late 1990s with The Battle of Seattle in the US and Quebec City in Canada Bush and Cheney pulled off nine eleven and imposed a war on terror and began building up the police state to try to prevent a revolution against capitalism that was inevitable.

To enforce neo-liberalism the US has the largest prison population per capita by far in the world where protest leaders quickly find a home while millions of families have been made homeless; and a police state that monitors all forms of communication and asks neighbours to spy on each other. Anyone opposing capitalism from individuals to countries is treated as a terrorist.

I agree that the SOEs in China need to be reformed, but put under workers’ control, not privatized. China has a huge problem with fraud and corruption and the only way to end it is by democratizing the workplaces, particularly SOEs. SOEs belong to the people and privatizing them is theft; it denies the government the income they produce for the benefit of the people and puts it into the pockets of capitalists who will run off to another country where they can get cheaper labour taking their jobs with them as history shows.

Many economists need to study the history of capitalism and the imposition of neo-liberalism in the world and take off their rose coloured glasses. Neo-liberalism destroyed the American Dream and has led to unending wars for the US, and left millions of their people living in hunger, and homeless.

Albert Einstein wrote in 1949 that there would never be freedom or democracy with capitalism because capitalists control education and the media; today it is obvious that he was right, the US has the least educated population of any first world country and a mass media propaganda system that has brainwashed the population and misled the world.

Europe is also on the verge of revolutions as a result of privatizations and forced austerity, as happened in South America. The people of Iceland put their bankers in prison and told the creditors they would not be paying for the fraud perpetrated against the country by Wall Street bankers; Argentineans had been the first to refuse to pay the fraudulent debts imposed by the International Monetary Fund and the World Bank. 

China was held back until thirty six years ago by a US trade blockade that was also enforced by other capitalist imperial powers. The same trade war was conducted against the Soviet Union until it collapsed under the propaganda. Neo-liberalism dictated the opening up of China so that capitalism could take over; and US corporations began shifting production to China to take advantage of the cheap labour, and buying up anything they could with the worthless money their private bankers on Wall Street were printing. Neo-liberalism is the biggest fraud ever committed against mankind.


In the fraudulent world of neo-liberalism those cash cows, the SOEs are the only hope the people have for a better life in the future; returning to pre communist times in China is the path to a return to serfdom and slavery. China was supposed to be on the road to a socialist financial system with Chinese characteristics; has that vision been lost? Have capitalists already gained control of the government?

The anti-Wall Street movement that began in North America was met first with a media blackout and followed by propaganda and brutal police attacks against peaceful protestors who no longer have the right to protest; and it woke many people up to the realization that their media was in reality just a propaganda organ and that their education system was seriously inadequate. These people’s response was setting up libraries, turning off or throwing out their TVs and developing independent media.

The essence of capitalist mainstream neo-liberalism is not about development and growth, it is about gaining control of the world economy through fraud if possible, or war if necessary. Since the fraudulent attack on nine eleven an unending war on terror has been going on in Afghanistan, Iraq, Libya, and now Pakistan, Syria, and threatening Iran because they had anti-capitalist governments. Islamic finance is not compatible with capitalism so Islamic countries must be destroyed.

Wall Street bankers led by Goldman Sachs have already gained control of two countries in the EU, and the people are approaching the explosion point. Socialist parliamentarians in Greece and Spain are advocating following the Venezuelan model.

China has a very good relationship with Venezuela and rapidly expanding trade since the country began on the path to socialism. Venezuela has the world’s largest oil reserves, which China is assisting to increase production and according to Chinese agricultural experts who are helping the country develop an agricultural industry land capable of feeding five hundred million people.

The people of Venezuela have achieved a much better standard of living in the last decade than the Chinese people have in thirty-six years since the opening up. To learn the truth about neo-liberalism you have to look no further than South America where it was first imposed.

China’s cash cows need to be refocused to benefit the population not just a few elites; and a new cash cow created through taxes on the wealth of the elite ultra wealthy class that has emerged to become millionaires and billionaires from the labour of the population. This kind of gross inequality only leads to rising crime rates, larger prison populations, civil unrest, and the threat of revolution as can be seen in the US.

Venezuela’s SOEs provide the population with free education through university, free health care, housing, and affordable food; this should be the goal of China’s SOEs not privatizing them for the benefit of a few parasites who serve no useful purpose.

Private owner operated and self employed businesses are what built western economies and made those countries wealthy; people who enjoy a good standard of living build the domestic economy. As Marx pointed out real wealth is only derived from mixing labour with a means of production. Fraud has been the distinguishing characteristic of capitalism since it first appeared with the South Seas bubble that fleeced investors.

Neo liberalism was the ideal conceived in Europe in the 18th century by British political thinkers in search of a way for the nobility to retain ownership of the commons amidst revolts and revolutions with people demanding freedom and democracy. Free trade and no government involvement as peoples were rising up demanding freedom and democracy. Free trade and no government involvement that became the basis for capitalism was the goal of the Royalists; England has remained primarily under the control and ownership of Lords to this day and the British monarch today, a queen, is reported to be the wealthiest woman in the world.

The revolution that led to the creation of the US was instigated and led by a small class of elites; mainly slave owners of plantations who had received large tracts of land from the crown to establish colonies in the new world, who obtained the support of the people to free themselves from the monarchy, and perceived unjust taxes. The US constitution was not written to create a democracy, the word does not even appear in the constitution; it was written to protect the wealth and power of the elites.

Albert Einstein wrote in 1949 that there would never be freedom or democracy with capitalism because capitalists control education and the media, and it is obvious today that he was right as many anti-Wall Street protestors discovered much to their surprise.

The mercantilist economic model that preceded capitalism created wealthy countries particularly in the Americas where serfs from Europe could become independent landowners on stolen native land engaged primarily in farming; secondary industries developed to meet the needs of the farmers and a booming economy followed. The advent of corporations, monopolies, and free trade have destroyed the independent businesses and farmers; that is neo-liberalism, and it is currently morphing into fascism.

By John E. Jones


John E. Jones is the author of  “Faces of Capitalism and Socialism” and writes on politics in historical context.


(Opinions of the writer in this blog don't represent those of China Daily.)




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