A prominent theme for the Republican presidential candidates is addressing the role of government. Specifically, most communicate the desire to minimize its role. On the flipside, President Obama is perceived as favoring a protagonist government. But this is not a far left- far right disagreement. It is happening in the center.
Unlike the common perception that either side of the argument is on the fringes of the political spectrum, in reality this is an argument that is taking place within the American ruling class. And yes, you should be worried.
If a sizable portion of the American ruling class prefers to keep its wealth at record levels, and at the expense of investing in the country’s future, then that means that a sinking-ship mentality exists. In other words, some in the establishment believe that the US has had a good run, and now it is time to move on.
This was not the case in the 19th and early 20th Century, when liberalism was sweeping the globe at the hands of the British Empire. Today’s free-market mantra was not popular with the American establishment back then because, obviously, it could not compete in the British free market. Instead, the American elite steered the government into implementing a policy of protectionism, giving American business and industry time to mature and expand domestically. Of course, American public opinion was manipulated accordingly.
The general population in the United States eventually benefitted from the actions of the elite, but it is important to realize that the elite were serving themselves. And just like the regular guy on the street in 1910 was isolationist, today’s regular guy is a free-market advocate. This is a troubling development.
The regular American guy cannot successfully compete in the free market as it is today, especially if you take away social protections like a quality free education, unemployment benefits and retirement pensions. That we are even talking about scaling these back while proposing the elimination of capital gains taxes in the same breath means that the ruling class is conflicted about what the future of the United States looks like.
In the 21st Century the free flow of capital and globally abundant cheap labor means that a portion of the American establishment can continue to succeed without relying on a robust US government or even other Americans. This group will find it increasingly difficult to invest in the US itself- meaning education, infrastructure, health care, social security- if the US cannot give them a return on their investment.
Make no mistake. The powerful have always controlled the United States. The difference now is that the powerful strongly disagree on how to proceed. This disagreement will not be decided in the 2012 presidential election. It will continue throughout the next presidency and beyond, precisely because an increasing portion of the American establishment can succeed without the US.
