Donald Trump winning the presidency based on his promise to torpedo globalism came exactly 27 years after the fall of the Berlin Wall, and represents the second leg down for “World Socialism.”
Although U.S. history books declare capitalist United States the victor in World War II, it was World Socialism that ended up dominating most of the globe. Soviet Union and China carved out massive communist states, India adopted extreme socialism, and communist insurgencies were ascendant in Southeast Asia, Africa and South America.
Socialist governments controlled Western Europe and the idea that the state should play some kind of role in economic life was not seen as strange or unusual. Socialists differed on just how extensive the role of the state should be, but all agreed that “natural monopolies” like the railroad, phone service, health and electricity should be nationalized.
Paul Samuelson’s Economics was the top selling U.S. economics textbook from the 1960s through the 1980s. It proclaimed world socialism’s more efficient use of resources would allow the Soviet Union’s Gross National Product to pass the U.S. economy by 1984.
But mainstream economists failed to recognize that President Ronald Reagan’s policies of doubling down on capitalism through tax cuts and strangling the regulatory state in the 1980s would end the West’s inflationary spiral that had allowed communist resource-based economies to flourish. After the Berlin Wall fell on November 9, 1989, Russia was forced into a U.S. bailout and China adopted “Capitalism with Chinese Characteristics.”
But rather than accept a permanent home in the “dustbin of history,” socialists in Western Europe passed the Maastricht Treaty, which formed the 27 nation European Union. Meanwhile, Democrat President Bill Clinton signed the North American Free Trade Agreement and gave Most Favored Nation status to China.
Robert Wolfe, in the book Socialist Globalization, calls this “internationalist movement,” a system of planning and production that transcends the boundaries of the individual nation-states: “The goal of socialist globalization should be the treatment of the entire world as a single economic unit within which the provision of necessary goods and services would be maximized and the damage to the environment minimized.”
Leftist economist Joseph Stiglitz in January 2015 announced that “The American Century” had ended and “The Chinese Century” had begun, following the ‘World Bank’s International Comparison Program’ declaring China’s gross national product surpassed the U.S in 2014.
Stiglitz stated that the “rise of China also shines a harsh spotlight on the American model,” due to capitalist economic and political “systemic deficiencies — that are corrupt.” He demanded that America must “pivot” to accept that the economic interests of China and the U.S. are now “intricately intertwined” in the new global order.
China would boast that it played a “crucial role” in formulating a new global development pact called “Agenda 2030,” which was signed by 193 members of the United Nations on September 28, 2015. The world socialist and corporatist pact aimed at re-engineering civilization through that imposition of 17 “Sustainable Development Goals” and setting 169 accompanying targets in what was referred to as a “Great Leap Forward.”
China said that to “combat inequality domestically is simply not enough — international socialism is needed to battle inequality even among countries.”
The election of Donald Trump now represents an existential threat to World Socialism across the planet. Socialists know that when President Reagan went rogue with his muscular capitalist policies, communism quickly imploded. Trump has already torn up the Trans-Pacific Partnership, which would have internationalized the law covering $28 trillion in trade and investment, about 40 percent of global GDP.
Trump seems determined to destroy “Socialist Globalization” with the same capitalist tax cuts and regulatory relief that President Reagan used to destroy communism.