Send this article to a friend:

January
27
2017

The Demise of the Left
Paul Craig Roberts

On several occasions I have asked in my columns the rhetorical question: What became of the left? Today I answer my question.

The answer is that the European and American left, which traditionally stood for the working class and peace (bread and peace) no longer exists. The cause championed by those who pretend to be the “left” of today is identity politics. The “left” no longer champions the working class, which the “left” dismisses as “Trump deplorables,” consisting of “racist, misogynist, homophobic, gun nuts.” Instead,the “left” champions alleged victimized and marginalized groups—blacks, homosexuals, women and the transgendered. Tranny bathrooms, a cause unlikely to mobilize many Americans, are more important to the “left” than the working class

All white-skinned peoples except leftists, including apparently victimized women, are racist by definition. Racism and victimization are the explanations of everything, all of history, all institutions, even the US Constitution. This program of the left cuts the left off from the working class, who have been abandoned by both political parties, and has terminated the left’s connection to the people.

The collapse of the left as an effective and real political force followed the Soviet collapse. The underclass had resisted their exploitation before the publication of Karl Marx’s Das Kapital in 1867. But Marx raised the exploitation of labor to a fighting cause on whose side was History. The Bolshevik Revolution in Russia seemed to validate Marx with its overthrow of the existing order and proclamation of Soviet Communism.

Soviet practices deflated left-wing hopes and expectations, but nevertheless an alternative system which continued to speak against capitalist exploitation existed. When the Soviet Union collapsed in 1991, neoconservatives and neoliberals declared that History had chosen capitalism over the working class, and Marx’s prediction of the triumph of the working class had been proven wrong.

The Soviet collapse caused communist China and socialist India to change their economic policy and to open their economies to foreign capital. With no rival, capitalism no longer had to restrain itself and allow widespread access to the growth of income and wealth. Capitalists began collecting it all for themselves. Many studies have concluded that the productivity gains which formerly went mainly to the work force are now monopolized by the mega-rich.

One avenue to the concentration of income and wealth is the financialization of the economy (emphasized by Michael Hudson and by Marx in the third volume of Capital). The financial sector has been able to divert the discretionary income of the working class into interest and fees to banks (mortgages, car loans, credit card debt, student loans).

The other avenue is the offshoring of American jobs to which Donald Trump is strongly opposed. Here is what happened:

Wall Street told US manufacturers to move their production to China in order to increase profits from lower labor and regulatory costs, or Wall Street would finance takeovers of the companies, and the new owners would raise the firms’ profitability by moving production offshore. Large retailers, such as Walmart, ordered suppliers “to meet the Chinese price.”

When the jobs were in the US, most of the gains in productivity went to labor. Therefore, real median family incomes rose through time, and the consumer purchasing power this income growth provided drove the US economy to success for ever more people.

When the jobs were moved to Asia, the growth in real median US family incomes stopped and declined. The large excess supplies of labor and lower cost of living in Asia meant that Asian workers did not have to be paid in wages the value of their contribution to output. The difference between the US wage and Asian wage was large and went into corporate profits, thus driving up executives’ “performance bonuses” and capital gains (rising stock prices from higher profits) for shareholders. In my book, The Failure of Laissez Faire Capitalism published in 2013, I was able to calculate that based on current information at that time, every 1,000 manufacturing jobs moved to China resulted in a labor cost saving for the US company of $32,000 per hour. These hourly savings did not translate into lower prices for US consumers of the offshored production. The labor cost savings translated directly into the incomes of the executives and shareholders.

Thus, jobs offshoring permitted the productivity gains to be monopolized by corporate owners and executives.

Instead of responding to Trump’s support of the working class and his actions in their behalf during the first week of his presidency—Trump’s termination of TPP and his demand to auto manufacturers to bring manufacturing back to America—the “left” has rallied around a victim group—illegal immigrants. The “left” even elevates non-US citizens above the US working class.

Trump was elected by the working class. If the left is defined historically as the champion of the working class, then Donald Trump is their champion and the “left” is their enemy.

Throughout the contest for the Republican presidential nomination and the contest for the presidency, the “left” was allied with the ruling establishment of mega-rich capitalist oligarchs and the warmonger military/security complex against Trump. As Trump’s presidency begins, it is the “left” that wants Trump impeached and delegitimized, precisely the goals of the war- mongers and the mega-rich and their presstitutes.

Even environmental groups, such as NRDC of which I am a member, have joined the identity politics against Trump. Rhea Suh, NRDC’s president, has just sent me an email in which she declares NRDC, supposedly a champion of wildlife and the environment, to be standing with women in the Women’s March on Washington against Trump “in defense of our most basic rights as women.” “Women matter,” Rhea declares, and proceeds to blame Trump for Flint Michigan’s polluted water.

I am convinced that it is a mistake for Trump to emphasize jobs at the expense of the environment. Whether or not global warming is a hoax, environmental destruction is not. It is real, and the working class, as in Flint, are suffering from it as well as from the offshoring of their jobs.

The Democratic Party died during the Clinton regime when Clinton allied with the Democratic Leadership Council (DLC) founded in 1985 by Al From. I have often wondered who funded the DLC. It could just as well have been the Koch brothers as the DLC turned the Democratic Party into a second Republican Party.

The DLC convinced Democrats that the defeat of the presidential campaigns of George McGovern and Walter Mondale proved that economic populism is not politically viable. Democrats had to turn away from the left and embrace “mainstream values” and “market-based solutions.” The DLC was a big supporter of NAFTA. Reportedly, the DLC’s Will Marshall regarded pacifists and Iraq war protesters as anti-American and advised Democrats to keep their distance.

In short, the message was: compete with the Republicans for the big corporate and financial sector money. It certainly worked for the Clintons, but not for the Democratic Party.

As “market-based solutions” offshored US manufacturing jobs, the Democratic Party’s finances declined with union membership and power. Today Democrats and Republicans are dependent on the same interest groups for campaign funds. Thus ended the Democratic Party’s connection with the working class.

The question is: Can Trump stand for the working class when both political parties and the presstitute media, the think tanks, universities, environmental organizations, military/security complex, Wall Street, and courts stand against the working class?

Who is going to help Trump help the working class?

Hon. Paul Craig Roberts is the John M. Olin Fellow at the Institute for Political Economy, Senior Research Fellow at the Hoover Institution, Stanford University, and Research Fellow at the Independent Institute. A former editor and columnist for The Wall Street Journal and columnist for Business Week and the Scripps Howard News Service, he is a nationally syndicated columnist for Creators Syndicate in Los Angeles and a columnist for Investor's Business Daily. In 1992 he received the Warren Brookes Award for Excellence in Journalism. In 1993 the Forbes Media Guide ranked him as one of the top seven journalists.

He was Distinguished Fellow at the Cato Institute from 1993 to 1996. From 1982 through 1993, he held the William E. Simon Chair in Political Economy at the Center for Strategic and International Studies. During 1981-82 he served as Assistant Secretary of the Treasury for Economic Policy. President Reagan and Treasury Secretary Regan credited him with a major role in the Economic Recovery Tax Act of 1981, and he was awarded the Treasury Department's Meritorious Service Award for "his outstanding contributions to the formulation of United States economic policy." From 1975 to 1978, Dr. Roberts served on the congressional staff where he drafted the Kemp-Roth bill and played a leading role in developing bipartisan support for a supply-side economic policy.

In 1987 the French government recognized him as "the artisan of a renewal in economic science and policy after half a century of state interventionism" and inducted him into the Legion of Honor.

Dr. Roberts' latest books are The Tyranny of Good Intentions, co-authored with IPE Fellow Lawrence Stratton, and published by Prima Publishing in May 2000, and Chile: Two Visions - The Allende-Pinochet Era, co-authored with IPE Fellow Karen Araujo, and published in Spanish by Universidad Nacional Andres Bello in Santiago, Chile, in November 2000. The Capitalist Revolution in Latin America, co-authored with IPE Fellow Karen LaFollette Araujo, was published by Oxford University Press in 1997. A Spanish language edition was published by Oxford in 1999. The New Colorline: How Quotas and Privilege Destroy Democracy, co-authored with Lawrence Stratton, was published by Regnery in 1995. A paperback edition was published in 1997. Meltdown: Inside the Soviet Economy, co-authored with Karen LaFollette, was published by the Cato Institute in 1990. Harvard University Press published his book, The Supply-Side Revolution, in 1984. Widely reviewed and favorably received, the book was praised by Forbes as "a timely masterpiece that will have real impact on economic thinking in the years ahead." Dr. Roberts is the author of Alienation and the Soviet Economy, published in 1971 and republished in 1990. He is the author of Marx's Theory of Exchange, Alienation and Crisis, published in 1973 and republished in 1983. A Spanish language edition was published in 1974.

Dr. Roberts has held numerous academic appointments. He has contributed chapters to numerous books and has published many articles in journals of scholarship, including the Journal of Political Economy, Oxford Economic Papers, Journal of Law and Economics, Studies in Banking and Finance, Journal of Monetary Economics, Public Finance Quarterly, Public Choice, Classica et Mediaevalia, Ethics, Slavic Review, Soviet Studies, Rivista de Political Economica, and Zeitschrift fur Wirtschafspolitik. He has entries in the McGraw-Hill Encyclopedia of Economics and the New Palgrave Dictionary of Money and Finance. He has contributed to Commentary, The Public Interest, The National Interest, Harper's, the New York Times, The Washington Post, The Los Angeles Times, Fortune, London Times, The Financial Times, TLS, The Spectator, Il Sole 24 Ore, Le Figaro, Liberation, and the Nihon Keizai Shimbun. He has testified before committees of Congress on 30 occasions.

Dr. Roberts was educated at the Georgia Institute of Technology (B.S.), the University of Virginia (Ph.D.), the University of California at Berkeley and Oxford University where he was a member of Merton College.

He is listed in Who's Who in America, Who's Who in the World, The Dictionary of International Biography, Outstanding People of the Twentieth Century, and 1000 Leaders of World Influence. His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press. He can be reached at: [email protected]

Please Donate

I listen to my readers. In March 2010, I terminated my syndicated column. Thousands of you protested. So persuasive were your emails asking me to reconsider and to continue writing that, two months later, I began writing again.

In order to create a coherent uncensored and unedited archive of my writings, The Institute For Political Economy, a non-profit organization that supports research, writing and books, has established this site, thus gratifying readers' demands that I continue to provide analyses of events in our time.

In order to stay up, this site needs to pay for itself.

www.paulcraigroberts.org