America cannot re-industrialize without reversing this whole philosophy of post-industrial society as a class war against labor. You can’t have both. You can’t have a class war against labor and reindustrialization with the labor unionization that goes with it.

Countries who let an oligarchy develop end up pushing their own economies into obsolescence and a kind of dark age. It’s policy, and most of all, it’s the policy of the Democratic Party’s administration

[The U.S ] economy is paralyzed and we’re in a debt deflation, an economic polarization, that is just transferring all wealth and income away from labor, away from industry, into really the financial sector and what I call the finance, insurance, and real estate sector.

And what’s failed is, right now, President Biden says that he wants the future to re-industrialize. He realizes that ever since the Clinton administration, the Democratic Party has been solidly behind de-industrializing the United States, and that’s actually going back to the 1960s and early 70s when economists were celebrating what they called, a post-industrial society.

Well, what does a post-industrial society mean? It meant a society without blue collar labor, really, service labor, which happened to be a society without labor unions. And the promise was that a post-industrial society was going to make everybody richer, and you’d have easier working conditions, and shorter working days, and productivity would rise, and everybody would have an easier, more prosperous life.

Well, that hasn’t happened, so the question is: Why did the United States decide to de-industrialize? And I think it was done as a combination between two parties. You had the Democrats with a pro-financial anti-labor policy, and the Republicans with a pro-financial, pro-landlord, pro-1% policy, wanting tax cuts; and the real objective of de-industrialization from Clinton on, was an anti-labor policy, because de-industrialization meant essentially lowering employment, and thereby lowering the demand for labor, and lowering the wages. And the question that everyone was asking from 1980 on was, why were wages having to be reduced, and why are wages lower right now? Well, for years, American dominance, as an industrial power in the late 19th century, was a result of low wages, as a result of low housing costs, low debt, free education, public services, and this had created a very prosperous US economy, from right after the Civil War, down through Roosevelt’s New Deal.

But all of this began to come under attack. Really beginning with the Carter administration, when he was promoting immigration as a means of cutting wages in the southwest. It was Carter that began to realize that, well, there’s a lot of labor that’s making too much money in the southwest, we’ll spur immigration.

Well, when Clinton came in later, he wanted to deregulate the economy and he wanted free trade, for basically, corporations to de-invest from the United States, and invest abroad, and hire low wage labor. He pressed to accept China into the World Trade Organization in 2001, and that’s basically the Democratic Party program today, to fight against labor, and reduce its wages, and favor Wall Street. Obama typified this. He promised a card-check to support unionization, and then just refused to do it. And instead of introducing card check, he devoted his time to hoping to work with the Republicans, to cut back Social Security, on the grounds that you had to balance the budget. And by balancing the budget, that would force the economy to rely on private banks lending money at interest, instead of the government creating money to spend into the economy by running budget deficits. Well, Biden has topped it all off by not supporting labor unions, as you saw during the railroad strike, and by the Democrats having a trick that they pull. They have some postgraduate lady – maybe she does have a degree, as the Parliamentarian, who, just in case the Democrats and Congress would pass a law that people want, the parliamentarian said, you can’t pass that because that’s pro-labor. And being pro-labor is against the Constitution. Because that’s against what the original leaders of the Constitution meant. And you can’t pass a law favoring blacks or hispanics, as you saw with the Harvard case, because after all, the original authors of the Constitution were mostly slave owners, and they wouldn’t have wanted any such favoritism to the blacks.

So if you’re an originalist, of course you’re going to have the Parliamentarian lady say, well, that’s not really what the Supreme Court will agree with. And of course, when it finally did get to the Supreme Court, they said: you can’t do this, this is not what the original founders of the Constitution wanted and believed.

They wanted to enslave the blacks, not get them into Harvard for heaven’s sakes. Well, I don’t want to leave the Republicans out of this, because they’ve had a kind of complementary pro-rentier policy, favoring real estate under Reagan, with his accelerated depreciation. He basically made absentee ownership and commercial real estate tax exempt, and he slashed the taxes on wealth, and moved away from progressive taxation to regressive taxation.

As did Donald Trump, and of course the Democrats have accepted all of this. There was no attempt by the Democrats to fight back against the Republicans regressive taxation, and the difference is that the Republicans have a kind of libertarian, anti-government policy, which is their euphemism for a government strong enough to control the economy, and the interests of the 1%, who are their campaign donors.

And the Democrats are pro-government. Namely, they want a pro-government strong enough to defend the 1% against the rest of the economy, but they use a different rhetoric for all of this. So the problem is that both US political parties are committed to de-industrialization for the reasons that the head of the Federal reserve has explained over the last few months: if you have more industrialization, you’ll have more employment, and if you have more employment, you’ll raise wages. And our philosophy, Democrats and Republicans alike, is to keep wages down so that corporate profits can be higher. And it’s worth it to the employing class, it’s worth it to the corporate monopolies to impose a depression on the United States, as long as that will reduce wages and strengthen the power of the 1% over the 99%. So the 1% is willing to lose sales, to lose profits, as the economy falls into what they call a recession, as long as their power over the 99% increases.

That’s the basic key to understanding where American politics is going. And this is why the Davos gang says the world is overpopulated. Who needs labor, when it really can’t afford to pay interest. For the financial sector and the FIRE sector, the 1% or the 10%, the role of labor is to make enough earnings so that it can pay interest to the banks, pay rents or interest to the mortgage lenders, and can basically pay money to the FIRE sector. And if labor’s wages really are forced down to break-even subsistence levels, then who needs labor? Time for population control. And basically the US problem is not only low wages, but it’s tax favoritism for the FIRE sector. And this cannot be reversed without causing a bank crisis. Because if you were to tax real estate and home ownership, for instance, and commercial real estate with a land tax, which is what the whole 19th century’s classical economics is all about, then the banks couldn’t get paid. So we’re stuck. America cannot re-industrialize without reversing this whole philosophy of post-industrial society as a class war against labor.

You can’t have both. You can’t have a class war against labor and reindustrialization, with the labor unionization that goes with it. That’s the conundrum. So when Biden talks about, we at the Democratic party want to re-industrialize, there’s no way that his policies can possibly permit any real re-industrialization to occur.

And that’s why America’s stuck. That’s why it’s become a failed state, because it can’t compete with other countries in today’s world with this right wing libertarian, anti-labor, neoliberal philosophy.