25 July 2023
US capitalism’s shifting geography has led to various regions being abandoned and depressed, starting with New England, then moving to New York and the mid-Atlantic, then the Midwest, the Far West, South, and Southwest. As capitalists sought higher profits, they moved facilities and investments out of the US, especially to China. The result: wage stagnation, growing income inequality, and social division in the US.
This exodus, justified under “neoliberalism” and “globalization,” chiefly benefited the rich corporate shareholders and executives, intensifying income and wealth gaps. The argument was that this global movement was good for all citizens. Meanwhile, China, unlike other countries, ensured foreign investments served its own development plan, leading to a fast-paced economic growth.
With China and its allies (Brazil, Russia, India, South Africa) posing the first sustained economic challenge to the post-WWII US empire, the US has responded with resentment, provocation, and denial. Yet, the capitalist shift towards nations like China and India has intensified these countries’ economic interactions, providing alternative markets during the sanctions war against Russia.
The abandonment of capitalism has led to social division and crisis in the US, characterized by phenomena like populism, unionization drives, strikes, and political extremism. Meanwhile, China and its allies are witnessing substantial gains from this capitalist relocation.…