Figures 1 and 2

How the United States, Japan and Germany are crushing the EEC

1st May 1993 Socialist Action 0

First published: Spring 1993

The electoral collapse of the French and Italian Socialist Parties signals the demise of Euro-socialism, the dominant current in the West European labour movement for the last decade. This is simply the latest symptom of the crisis of the European Community. The EEC is being ground between the external competitive pressure of the United States and Japan, and the internal dominance of the unified Germany. Rather than offering reforms, Maastricht proposes to dismantle the welfare state in Western Europe. The rise of the extreme right and the collapse of Euro-socialism are logical results.

In Europe imperialism is suffering its first substantial reverses since Gorbachev came to power in the Soviet Union. At the beginning of 1992 imperialism recorded an historic triumph with the installation of a capitalist government under Yeltsin in Russia. But a year later Yeltsin had lost his majority in the Congress of People’s Deputies. George Bush failed to secure re-election in the United States, Japan faced financial crisis and the European Monetary System came apart at the seams. Thus the re-charged imperialist system, which delivered Washington’s triumphs at the end of the 1980s, has started to exhaust itself.

No Image

Marxism and inter-imperialist competition

1st May 1993 Socialist Action 0

First published: May 1993

The consideration of inter-imperialist competition is frequently not integrated into the body of Marxist economic analysis, which is too often seen as relating to the study of the workplace or to national capitalism, with inter-imperialist competition running ‘parallel’ to this. This is radically wrong.

The starting point of Marx’s analysis is the development of ‘capital in general’ or ‘the capital of the whole society’ [1]. This is sometimes taken to be the capital in a nation state, but this is wrong. [2] Capitalism is an international system in which the world economy is dominant. The decline in the rate of profit throughout the 1960s and 1970s, from which capital has still not recovered and which is the driving force of the present crisis, was an international decline working itself out in all countries.

But capital as it actually exists is not ‘capital in general’. As Marx put it: ‘In their actual movement capitals confront each other in certain concrete forms’. [3] Capital exists as different firms, and different nations with different companies and trusts, in competition with each other. It exists, as Marx put it, as ‘many capitals’. Competition between these capitals is the ‘essential locomotive force of the bourgeois economy’.  [4] Competition is the mechanism by which the fundamental laws of the capitalist economy work themselves out.