By John Damos. Originally published at Smirking Chimp.[U]SA has lost 25 million good paying jobs to China since China joined the WTO in 2001. Nixon and HW Bush both worked for openness and engagement with China, probably with the intent of moving US corporations into China for its cheap labor and also to gain inroads an eventually dominating Chinese government policies and politics as China became dependent upon USA for markets and for technical expertise.
Simultaneously, back in USA, a new generation of corporate CEOs was taking the reins of hundred-year-old big corporations like GE and GM and Boeing and Caterpillar and others, including Wal-Mart. These CEOs were far different men and women than even the early 20th Century robber barons who so dominated global world affairs during their lifetimes. As self-serving as those old time robber barons were, they deeply believed in USA and its future, and they worked always to keep USA in a dominant position in global affairs.
Psychologically and socially, the early robber barons like Ford and Morgan and The DuPonts and others saw USA as the shining land on the hill, a place of grand, unlimited opportunity to become whatever a man wanted to become, rich or poor. And the social norm for USA was that all of American society, both rich and poor, came to believe in the well-being of USA as being one of the most important things in their lives, after family, God and the daily struggle for survival.
New immigrants came to these shores, and soon acclimated themselves into the humming, thriving, industrial, construction, invention marvels that quickly brought USA to the forefront of global banking, global industrial dominance and, eventually, in a position to impose its objectives on Old Europe.
At the heart of all of this was a deeply felt loyalty to America and all that it included.
But, after the end of WWII, that previous American grand vision began to change. US industrial capacity for making weapons that had been such a wonderful boon to USA and The Allies during WWII, with USA furnishing much of the Allied money and war materials, just could not be sustained with domestic production and sales inside of USA. We were the primary exporter to devastated and rebuilding Europe, but soon Germany was back producing, and so was Japan, which agreed to not rearm if USA accepted its industrial exports. Much the same happened with Germany. So global trade began. England and France tried to revive their colonial empires, but their wars had devastated them, and nobody cared to finance them anymore, so they withered as the Vietnamese drove the French out of Indochina and India sent the British packing too.
So, USA, with its massive ability to create weapons and war decided to take up the slack and dominate former colonial nations around the world by fighting a series of “brushfire wars” to install puppet dictators in favored nations. This allowed the expenditure of vast amounts weapons on those nations like Vietnam, which kept the weapons producing corporate machinery running at full efficiency. Opposing Russia and China in a Cold War enabled the corporate weapons makers to continue full time building weaponry for the next wars.
But, then the wars by proxy began. Russian and China backed Vietnam against the USA and that war dragged on until 20 years of US weapons production from 1945-1965 was dumped on the Vietnamese, but still the Vietnamese drove the USA out of their country.
This entire process, combined with a young generation of educated baby boomers, who saw no sense in dying to dominate some little backwater country, soon soured US popular opinion on brushfire warfare, but still the weapons producers and vast MIC had to justify its existence and billions of dollars of taxpayer funding.
Then came the spreading of freedom and democracy. Loud-mouthed dictators who would not play ball with the USA became new war making targets. Economic “hits” on third world nations became standard fare for US global corporations.
John Perkins, an economic hit man, describes the processes, which combined global loans, buying dictators and imposing austerity and military force upon such nations as a means of enriching global corporate coffers. This new paradigm was really a revised version of old time colonialism, except the threat of enormous military force and local dictators were substituted for Viceroys and Colonial Governors.
Years and years of gradual US public demoralization beginning with the Vietnam War, gradually grew a new generation of (for want of a better word) “non-believers” in USA, as a land of greatness and unlimited goodness and opportunity. God, and previously religiously defined morality, died in the minds of a great many Americans, and they found themselves on their own, attempting to define some sort of a new morality and reasons for living and doing what needed to be done in daily life, and in global world affairs.
The personal thought and social acclimation derived from this loss of some sort of standardized American purpose and morality took many forms. At every turn there were newly minted versions of morality and images of social responsibility, from existentialism to attempts to revive old religious paradigms to other attempts to define a new “greed is good” America along with the notion that wealth and power and personal material and monetary success is the main reason for competing in the contemporary world.
Think tanks abounded, with so-called experts and patriotic sounding names, but with the purpose of promoting this or that social ideal that meshed with the new “greed is good” American morality.
Authors like Ayn Rand, with ideals of cold-blooded usage of people to gain personal power and wealth were worshiped. Psychologists like BF Skinner’s methods of manipulating people like lab rats or animals for purposes of supporting the new classes of “greed is good” overlords, were also used. Gone was any genuine love of humanity just for the sake of doing good for the human species.
I have often accused our overlords of being almost totally psychopathic, but I admit that I do not think that is quite right either. A psychiatrist friend once told me that there are very few true psychopaths ever born.
I think people are trained somewhat by both positive and negative stimuli and other social factors, like their associations (in this case with power and wealth), and then, they take the path of least resistance to get to the idealized status quo they create in their minds or which is created for them by others (universities, old money parents, scam artists opportunists and intellectual manipulators who are always hanging around those in power and insert themselves into positions of great influence).
Along with this new personal success paradigm and “to hell with everyone else” morality, came the notion that a person does what he or she has to do to reach idealized levels of personal success, even at the expense of friends, family, community, nation and the world.
With the above in mind, consider that global CEOs during the 1980s and forward, convinced corporate boards to link their multi-million dollar bonuses and stock options to corporate profits. And then, profit and the CEOs personal success became the single and only main driving force of US corporate business and global corporate business.
Absolutely gone were the old US corporate notions of caring for nation, community, workers, and the company and the products the company produced.
When Nixon opened up China, as noted above, USA saw this as a way of gradually subduing China into its sphere of global influence.
However, the Chinese, old adversaries of USA, are very intelligent and are legendary pragmatists, and they are traditionally, since the early days of civilization, some of the best merchants in the entire world. So, we might speculate that Chinese pragmatic thinkers viewed USA’s globalist business people as still being wet behind the ears in the diplomatic and global influence peddling game.
After all, China had, for centuries, maintained a stable civilization without much military power at all to speak of, but USA, without its military power, is like a duck out of water, and the Chinese know this too. I will continue this line of thought after considering Japan for a paragraph or so.
But in opening up China, Nixon and followers foolishly reneged on USA’s contract with Japan (China’s former enemy) to provide security for Japan if USA allowed Japanese imports.
When this happened, and US personal-greed-driven, immoral and non-patriotic, disloyal to USA, CEOs, began moving US production to China to take advantage of prisoner slavery and low wages there, Japan reacted because of being thrown under the bus.
Japan lowered the value of the Yen against the US dollar, which made Japanese imports extremely attractive because a few US dollars would buy lots of high quality Japanese product.
When the dollars began rolling into Japan, Japan began loaning its FOREX dollars to US consumers to buy Japanese automobiles and other high quality products at or near zero interest rates. So cheap credit, and cheap Japanese products ruled USA for a few short years.
This, of course, created enormous pressures upon US bankers who were cut out of the US lending loop at fair interest rates. Foreign Japanese pressure, no doubt, helped create the enormous mortgage crisis where Banking executives, cut from somewhat the same cloth that opportunistic, limited morality CEOs were cut from, decided to run a scam on both the USA and the entire world.
After all, they had the US MIC backing them, with itching trigger fingers, just waiting to justify their jobs with an enforcement war somewhere. So, these big bankers joined the Japanese making cheap loans on US middle class homes and Ez credit second mortgages that they knew were enormously risky. So they bundled those mortgages and sold them to foreign investors and banks, even driving the government of Iceland into bankruptcy. And then the money from all of this looting disappeared around the world into pirate coves and foreign investments. And to top this, they create derivatives in enormous amounts that even dwarfed the US money supply.
Why did all of this happen? That answer is really an easy one. It happened because the US government and its leaders did absolutely nothing to stop them.
Republicans under Bush co. deregulated banking and essentially withdrew from governing business in USA at a time when regulation was direly needed to sustain and keep basic US wealth inside of USA.
But, gradually, with the enormous money global corporations and lobbyists have available at their fingertips, US politicians, dependent upon corporate media and corporate campaign contributions, took the position that what is good for global corporate business is good for USA (or at least US politicians). So, the US government today supports US multinational business around the world, first and foremost, above the desperate needs of our own nation and its population of over 300 million citizens.
In a very real sense, if a politician wants to be elected, he or she must have that globalist corporate campaign funding and corporate media support, or they are set to lose an election even before the voting begins. They will be “disappeared” by the media if they do not cut a deal with media giants, and corporate lobbyists, and even foreign lobbyists. In this mix, the American people, all 300 plus million of them are cut almost completely out of the US democratic policy loop. We have little if any influence upon US leadership.\
That is very much why USA now resembles authoritarian pre-war Germany where big industrialists and huge weapons makers like ThyssenKrupp dominated policy and politics along with the giant Japanese manufacturing conglomerates of those pre-war days.
So now, back to China. With the above US government deregulated and rolled over completely supporting globalization and outsourcing of US jobs, mainly because CEOs and their lobbyists want those jobs in China, the US government is working against its own well-being and the well-being of the US nation itself when it is willing to do nothing when 25 million Americans are put out of work simply because of the limited morality of self-serving CEOs and their investors who are working to set themselves up personally, living in enormous wealth at the expense of the US nation and millions of Americans, along with Chinese slave labor.
The Chinese, being the pragmatists that they are, looked at this situation and it was an unbelievable boon for them. They welcomed USA’s corporate giants like GE, Wal-Mart, Boeing and thousands of entire US industries into China, and they began Chinese nation building on the backs of their peasant classes (a longstanding tradition in China). Peasants were moved to the factories and into dormitories. Prisoners became slave labor in the most inhumane of working conditions, and pollutants were dumped out the back doors of Western owned factories, with worker working conditions and worker health being of no concern at all. Cancers abound because of this pollution.
But, the Chinese are happy to accumulate US FOREX dollars in trillion dollar amounts and nation build for the future with those dollars. And so are those opportunistic, treasonous US corporate CEOs and investors who control the US multinational corporations in China.
And then the Chinese copied the Japanese in subsidizing Chinese manufacturing at about 17 percent and also, the Chinese lowered the value of the Yuan against the US dollar, making US dollars very valuable against the Yuan. So we buy cheap stuff here in USA, but China, like Japan buys very little US made product except looted Middle Eastern oil brokered by USA to get its debt dollars back with Chinese labor attached to them.
And China accumulates trillions of US FOREX dollars.
Those FOREX dollars are very valuable to developing nations. They need them to buy oil since the US military enforces the US dollar as the global oil currency. So, having these FOREX dollars enables China to go around the world and buy up all kinds of natural resource deposits for the future and for its industries, and also to buy US and Middle Eastern oil for its energy needs.
And there is more. China is educating its young generation at a phenomenal rate, and they are excelling globally. And China is moving rapidly in to all areas of high technology. US corporations allowing Chinese to handle state-of-the-art US technology is the same as giving it to them. They copy anything and everything, but they are able to improve refine and innovate. Chinese ability to spy across the Internet is said to be phenomenal, but they simply copy designs from the corporations that stupidly manufacture in their country.
There is a special effect that happens with this copying of existing state of the art technology. It gives the copying nation a top advantage, since it begins its technology competition race from a point long past the starting point, where it picks up its development from a beginning point where millions of man hours or work and investments are already accomplished for them.
For example, Boeing and AirBus are doing some joint manufacturing in China. You can bet that within 5 years, China will be marketing a combination Boeing-Airbus plane that will make both the US and German company profits dry up. But these stupid CEOs main thing is to accumulate bonuses for the time-being and retire early and let their successors sort things out.
If CEOs have any doubts about how the Boeing-Airbus Chinese venture will pan out, they can look at how China quickly copied the top of the line Russian Su 27 fighter, and is selling it internationally without paying Russia any license fees at all.
China is buying warships from France and China has good engineers and shipyards too, and steel production. So, we can bet that any shipbuilding technology that it can accumulate from multinational corporations or from buying weapons systems will be turned into a Chinese state of the art military within a few years. And with 5 times the population of USA, China, within a few short years can field a Chinese military 5 times the size of the US military, probably with up-to-date equipment.
Right now, US small and medium manufacturers cannot compete with US multinational corporations in China. As one CEO of a US company that manufactures in China noted. I can sell for the cost of production of the Chinese product made in China and the Chinese government sends me a subsidy check of 17 percent each month. That is my profit margin.
This Chinese subsidizing US multinational manufacturers is doing the same thing the Japanese did many years ago to US car makers. It drives US manufacturers out of business, and then Chinese products take over the US markets.
Do these multinational CEOs know? Yes. Do they care? Not much, as long as those bonuses come in and they can store their loot around the world away from the US IRS.
But, China is growing in both economic, industrial and military strength. At some point, US multinational corporations will find themselves competing with Chinese rival corporations down the street from them, making the same products they make, but selling them for less. And those 17 percent Chinese subsidies they were enjoying to help destroy US industry and US workers will be gone.
But back home in USA, US manufacturers are being driven out of business, while the US government supports global multinational corporations that are destroying the very foundations that the US government sits upon, which is the will of its people and their ability to create real wealth with their ingenuity and hard work.
The solutions are simple ones. Limit the outsourcing of US jobs. Limit lobbying. Limit imports and raise tariffs, and even subsidize companies that create US wealth and employ US workers. Improve US education and technology, and keep those improvements and state of the art developments within USA, so USA can profit from them.
In short, USA needs to become a working, competitive and creative nation again. And its CEOs and political leaders need to receive a good dose of patriotism from somewhere at some point, or be refused continued citizenship and the right to do business in USA.
We in USA need government leadership and government people to stop the corporate treason against our once great nation, and then we need an entire new generation of US nation builders, from top to bottom rungs of US society to be put to work saving USA for the future.
Unless USA moves in directions that serve USA, China will ring the death knell for USA, and unless we stop them, our sellout corporations, their investors and their greedy CEOs will help the Chinese destroy us.
An inspirational source for this article came from a Netflix movie titled “Death By China.” Starring Martin Sheen and directed by Peter Navarro. I highly recommend this movie to viewers.