Wednesday, November 28, 2018

The Strategy of the Trump Faction -- ‘‘‘Reflate’’’ the Profit-Rate. GLOBAL, HUMAN-SPECIES-STRATEGIC HYPOTHESES.







The Strategy of the Trump Faction -- ‘‘‘Reflate’’’ the Profit-Rate. 

GLOBAL, HUMAN-SPECIES-STRATEGIC HYPOTHESES.







Dear Readers,


GLOBAL, HUMAN-SPECIES-STRATEGIC HYPOTHESES.  As we have noted here before, the Rocke-Nazi faction -- the formerly, all but ‘uncontestedly’ ruling faction of the capitalist ruling class, ever since their coup détat, in which they exterminated the leadership of the rival, ‘‘‘Roosevelt faction’’’ in the 1960s, but whose rule is now under severe contestation by the Trump, ‘crypto-Rooseveltian’ faction revival -- has, together with their Spokes-Servants, publicly, if somewhat ‘sequesteredly’, announcing their plans to exterminate ~95% of the human race, thus including you and your family.  They have been announcing these plans for a long time -- 


-- but are only now approaching, again, the capability to carry out these horrific plans, iff they can get the Trump faction out of their way.

What is it about the Trump faction’s strategy that has so unnerved the Rocke-Nazis, to the point that they have declared all-out ideological total war against the Trump administration, and against the “nationalist” and “populist” movement that supports that administration, electorally and otherwise, and have focused all of their mass media assets -- television, radio, magazines, remnant newspapers -- on a 24 X 7, almost second-by-second disparagement of everything about Trump and his administration, of every single thing that he does, down to the minutest minutiae?  Indeed, ever since the Rocke-Nazisdeclared all-out ideological war on Trump and his faction, there is only one program ever aired in the Rocke-Nazi owned-and/or-controlled mass market tele-media:  the ‘Dump-On-Trump Show’!

The working class in America is not a “class for itself”, aware of its own identity as such, aware of its interests, and actively and consciously pursuing those interests.  It has largely been reduced to a defenseless “class in itself”, balkanized and bamboozled by every divide-and-conquer ruse that the Rocke-Nazis have been able to concoct.
 
One of the consequences of this is that it has taken a long time for the working class majority to even begin to figure out that the many misfortunes that have avalanched upon them, upon their whole families, ever since the 1960s Rocke-Nazi coup détat, is the result of a planned -- pre-meditated -- Rocke-Nazi war upon the working class, and especially upon the U.S. working class, as part of the Rocke-Nazisgeneral War Against Humanity. 

The movement behind the Trump faction’s electoral victories is a sign that the U. S. working class is beginning -- just beginning -- to wake up to that war upon them, and to their own dire peril, at the hands of the Rocke-Nazi Deep State.

The best times, within capitalist times, for a working class “in-itself”, are the times of capitalist economic recovery, expansion, boom -- times like right now.

During those times, the pro-productive-forces factions of the capitalist class, and the working class, can enjoy mutual benefits.  During those times, even a partial alliance is possible between the two classes.

It is such an alliance that the Trump faction is seeking -- and partially succeeding already in achieving.  The Trump faction is beginning to deliver prosperity -- even unprecedented prosperity -- rising wages, falling unemployment, low inflation, > 2% [GDP] growth, etc., and is relying on the working class to deliver electoral victories to Trump faction candidates in return.

But how has the Trump faction achieved these already nearly-unprecedentedly-positive economic results, and what is the Trump faction’s strategy for sustaining and even surpassing these results?  And what is the Rocke-Nazi strategy to derail all of these unprecedented benefits?

To address the first of these two questions, we will draw upon Marxian, dialectical social science, and, specifically, upon Marx’s immanent critique of capitalist political-economics.

Per Marx, and many others, the ‘socio-politico-economic’ driving force of the capitalist world market social formation entire is profitability, specifically, the general social rate of profit on capital.

We can look at this “rate of profit” in a more phenomenal view, such as the view of it that capitalists natively take, or we can see this rate from the more core-analytical, Marxian viewpoint. 

The phenomenal view measures this rate as, e.g., “rate of return on Investment, r/I, wherein r denotes the gross monetary return “caused” by the operation of the capital Invested in fixed capital means of production, etc., denoted by I.

The Marxian view measures its “rate of profit” as gross social “surplus value”, s, in relation to the capital investment that yields that, with that capital investment crucially disaggregated into the part of the invested capital value that pays workers, v, plus the other part of invested capital value, that represents capital value that pays for materials and other non-worker means of production, called c.  So the Marxian profit-rate ratio is thus s/(c + v).

These gross rates, however, do not tell the story of actualized profitability.  That story must be stated in terms of periodic net return, r’, and of periodic net surplus-value, s’.

The costs that must be “netted out” of the gross numerators to accurately compute the net numerators of these profitability ratios include the following --

  • D =  interest costs; periodic costs of Debt-service on loans to capitalist firms;
  • L =  Land, etc., rent costs; costs of periodic payments to the owners of lands
                      rented or leased to capitalist firms;
  • T =  costs of Taxes paid to governmental entities by capitalist firms;
  • G = costs of compliance with Governmental regulations.

So, with greater specificity as to actualized profitability, these ratios become --

Marxian core-analytical view:    s’/(c + v)  =  (s - D - L - T - G)/(c + v);

capitalist, phenomenal view:      r’/I  =  (r - D - L - T - G)/I.


From the perspective offered by the above profitability metrics, we can see that the core strategy of the ‘Trump Faction’ is to ‘‘‘reflate’’’ the net profit rate of, in particular, smaller industrial and manufacturing firms, by reducing the absolute value dollar size of both T and G for those firms -- i.e., by reducing both corporate taxes and the costs of compliance with governmental regulations. 

Changes to federal tax law that Congress passed along with the corporate tax cuts, that tend in the direction of immediate depreciation of capital investments in new plant and equipment fixed capital, also take some of the sting out of ‘‘‘technodepreciation’’’, thus encouraging fresh capital investment by such firms in yet another way.

The resulting, surging increases in profitability will then fuel, per this strategy, an economic expansion that will look like a sustained “boom” in comparison to the  sustained strangulation of profitability and productivity that have characterized the Rocke-Nazi regime in the U.S., ever since the 1960s.

Tariffs.  The Rocke-Nazis have used “free trade”, together with non-enforcement of U.S. immigration laws [de facto “open borders”], to crush the wages and employment opportunities of the U.S. working class, transferring formerly U.S.-based higher-paying industrial jobs to foreign dictatorships, which keep their working classes, and those classes’ wages, in check, by police-state means, resulting in the de-industrialization of America, and the creation of a vast “Rust Belt” [more truthfully named The Rockefeller Belt] of quasi-Third-World impoverishment and immiseration in the heartland of the United States.

Rockefeller-whore economists, in droves, opine relentlessly, on Rockefeller-controlled fake news media outlets, that “Tariffs never do anybody any good” and that “Tariffs only raise prices for consumers”, in a display of statical thinking that is pathetic even for capitalist-class ideologues.

The Trump tariffs are an integral component of the Trump Faction’s ‘profit-rate reflation’ strategy.  True, in the short run, such tariffs will tend to raise prices.  That rise in prices is crucial to the capitalist dynamics that the Trump Faction seeks to unleash. 

Those price increases can create potential profit margins, big enough to attract capital investment to restart former U.S. industries, the very industries that the Rocke-Nazis had targeted and destroyed in their de-industrialization campaign/pogrom since the ‘60s.  These potential profitabilities can thus catalyze a re-industrialization of the United States.  The intensified, innovative investments, due to the intensified competition of capitals that such re-industrialization entails, will then lead to heightened productivity, lower unit-costs, and hence to decreases in the prices initially raised by the tariffs early-on.  They will also lead to higher wages and revitalization for the U.S. working class.

That is the very last thing that the Rocke-Nazi Faction ever wants to see!


Risks to the Trump Faction’s Strategy.  . . .

TO BE CONTINUED.



For deeper, scientific and ‘‘‘psychohistorical’’’ understanding of this ‘‘‘political-economic law of motion of modern -- capitalist -- society’’’, see the other key entries to this blog, and see also --




Regards,

Miguel










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