James Petras analyzes USA industrial decay
I’m not too crazy about his writing style — some things seem over-verbalized and under-communicated.
By the mid-1950’s, while the US vastly expanded its state military apparatus (armed forces, intelligence agencies and clandestine armies), Western Europe and Japan expanded and built up their state economic agencies, public enterprises, investment and loan programs for the private sector. Even more significantly, US military spending and purchases stimulated Japanese and European industries. Equally important state-private procurement policies subsidized US industrial inefficiency via cost over-runs, non-competitive bidding and military-industrial monopolies.
US empire building via projections of military power absorbed hundreds of billions of dollars in government expenditures in regions and countries with low economic payoffs in the Caribbean, Central American, Asia and Africa.
While military-driven empire building did increase short term domestic growth and rising income, and led to some important civilian spin-offs and technological breakthroughs that entered the civilian economy, European and Japanese market-based empire building moved with greater dynamism from domestic to export led growth and began to challenge US predominance in a multiplicity of productive sectors.
The US prolonged and costly war against Indo-China (roughly 1954-74) epitomized the replacement of European colonial-military empire building by the US version. The hundreds of billions of dollars in US government war spending spilled over into Japanese and South Korean high-growth manufacturing industries. Western European manufacturing achieved productivity gains and export markets in former African and Asian colonial nations, while the US Empire’s murderous wars in South East Asia discredited it and its products throughout the world. Domestic unrest, widespread civilian protests and military demoralization further weakened the US capacity to pursue its imperial agenda and defend strategic collaborating regimes in key regions.
The relative decline of US manufacturing exports was accompanied by the massive growth of US public debt, which in turn stimulated the vast expansion of the financial sector which then shaped regional and national policy toward de-industrializing central cities and converting them into a finance-real estate and insurance monoculture.
