Uncommon Sense

May 2, 2018

Why Capitalism Creates Racism

This is a “must read” post on the Naked Capitalism site.

Why Capitalism Creates Racism

Here are some excerpts:

“In the current era, when NAFTA was passed, Mexico was flooded with American industrial corn. Its lower cost destroyed the peasant economy in Mexico by rendering locally grown corn ‘uncompetitive.’ This cut the peasants whose livelihoods depended on selling their corn out of the cash economy. Millions of suddenly ‘freed’ peasants went to work in maquiladoras or fled North in search of work as undocumented workers. Without racial or national animosity, NAFTA created a new sub-class of industrial labor.”

“In the context of labor coerced through manufactured circumstances (work for us or starve) and control of government by the industries doing the employing, the idea of market wages is nonsense. And therein lies the point. The ‘free-market’ way to entice labor is to pay the wage that people are willing to work for— without coercion. The ‘capital accumulation’ theory behind NAFTA— that sacrifice is required to accumulate the capital that makes capitalism function, (1) begs the question: function for whom and (2) was also used to justify slavery.”

“By the time NAFTA was fully implemented the powers-that-be behind its central policies busied themselves creating explanations of Mexican immigration to the U.S. In their telling, NAFTA had nothing to do with the millions of Mexicans leaving Mexico for the U.S. or for the rapidly declining fortunes of American workers who suddenly faced competition for their paychecks from people willing to work for whatever they could get. ‘Criminals’ and ‘freeloaders’ were coming for American jobs went the carefully-crafted storyline.”

“Of current relevance: (1) different classes of workers were created and placed in competition with one another to benefit a tiny ruling elite, (2) the interests of this elite were / are centered around pecuniary and political gain, (3) after implementation racialized explanations were put forward in lieu of the original economic explanations used to sell these programs and (4) these explanations followed the creation of the racialized ‘facts’ they were conceived to explain. The temporal sequence is important— mass immigration from Mexico and the destruction of the American working class were well-underway before racialized explanations were put forward to explain it.”

“The argument was made at the time, and is still made today, that ‘everyone’ benefits from massively disrupting the lives of millions of people with trade agreements. Theoretical proof is put forward in terms of dollars / pesos of GDP gained. Left out is that the Mexican peasant economy wasn’t monetized and therefore its loss wasn’t counted. Even on its own terms NAFTA was a loser. And imposing these outcomes from above makes them profoundly anti-democratic. In other words, even if the outcomes were as promised, the decisions were made by its largest beneficiaries, not those whose lives were disrupted.”

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