Source: Truthdig
Robert Scheer: Hi, this is Robert Scheer with another edition of āScheer Intelligence.ā And in this caseāI always say the intelligence comes from my guests; in this case, Iām saying it with great respect and awe. My guest is Noam Chomsky. And actually, this is my first real encounter with this man. But I obviously, as many people throughout the world, know him through his writing.
And Iām a little bit intimidated, frankly. And I thought back to an earlier moment in my journalistic career, when I was the editor of Ramparts magazine, and The New York Times savagely attacked Bertrand Russell for his anti-war work, his concern about nuclear disarmament, and in particular for his opposition to the Vietnam War. And Russell had had a reputation as a strong critic of communism, and was rather well known for that. So it was particularly disturbing to the mass media that wanted to support this war. And The New York Timesānow we talk a lot about fake news and real newsāinvented the fake news that Russell sort of had lost his rational capacity. And they actually engaged in character assassination, in an editorial and in reporting.
So I thought, well, Iām going to go to Walesāwhere he was livingāand he was willing to be interviewed. And I went there, and I found an [incredibly]āfrail, yes; he was then 94, turning 95. And this wasāwe published it in ā67, so I did it a month or two before. And Norman Rockwell, who was a great fan of Russell, was so offended by the character assassination, he volunteered his talent to do the cover of Ramparts, this wonderful drawing of Bertrand Russell. And I found this manāwho was as lucid as you can be; frail physically, but very clearāand we did a marvelous interview.
Now, I have this [Laughs]āpeople have criticized Noam Chomsky, but they did it when he was a vigorous young man, and no more so now. But I do see the parallel between you and Russell. You know, great intellectuals who were willing, as you have been, to be also an activist, or play an active role, and so forth.
And I want to begin with an intellectual question. And that concerns a letter that Aldous Huxley wrote to Orwell on the occasion of the publication of 1984, and they wereāthis was a post-World War II publication, in the late forties, and [Huxley] had written Brave New World in 1931. And I hope everyone listening to thisā
Noam Chomsky: Huxley had?
RS: Huxley had, yes. Sorry. And I hope everyone listening to this is, obviously, familiar with these books. One, Orwellās, is very bleakātotalitarian, sadism and so forth of the totalitarian state; and Huxley presents a view that is also a reflection of the work that Noam Chomsky has written about the advertising society, the manipulative society, the consumer society. Manufacturing Consent, the drug effect of sports and consumerism, lulling people into acceptance. And in his letter to Orwell, and by an accident of history, Huxley had been, in 1917, Orwellās French teacher at Eton, and knew him. And the publisher had sent it to Huxley thinking Huxley would just embrace it. And Huxley said some nice things, but he said: I think you missed the point; it wonāt be so overt, because the ruling classes that want to hold on to their power will find that more subtle, manipulative means much more effective. That was Huxleyās rejoinder to Orwell.
Now, your own work has sort of talked about all of it. And when I look at the current situation in the United States now, it seems to me we have an amalgam of these two totalitarian, dystopian models emerging. We, in the words of Neil Postman, we amuse people to death, we distract them; in your writing, youāve talked about those distractions. But weāre also a militarized state. We have punitive surveillance, and we use the espionage law. We have the boots on the ground; we have 800 bases.
So take it from there. WhichāI think we can start with the assumption we have to be concerned about a dystopian future. Which model do you see emerging?
NC: Actually, I could add a third one. The first of this series of dystopian novels was Zamyatin, his book We, around 1920, Russian, gave a very vivid picture of a dystopian society that kind of amalgamates the kinds of pictures that Huxley and Orwell were developing. But we are very clearly moving to a tight surveillance society. Thereās interesting work on this: Shoshana Zuboff, whose work youāve probably seen, a Harvard professor, has a book called, I think, Surveillance Capitalism, which is about the techniques that are being developed to influence, control behavior, control people through the use of modern technology.
So as Iām sure you know, when you drive a car, the car is picking up a ton of information about you, going back to the auto maker to some central source, we donāt know exactly where. And so if youāre driving down the main street in Tucson, where we are now, and the information thatās been collected indicates that you like Chinese restaurants, then if youāve got the right kind of gadgets in your car thereāll be an ad saying, you know, a half-mile from here thereās a Chinese restaurant you might like. And this is not just being used to flood you with information, but also to control you.
So, for example, the insurance companies are observing what youāre doing, if youāve got your car wired up right. And if they see you go through a traffic light, they can send you an instant message saying you better be careful or youāre going to raise your insurance rates. They can even get to the point of locking your car, you know. But thereās a combination of sort of punishment and shaping, trying to direct you in certain directions. You see it every time you look something up on Google, you know; then you get a bunch of things saying youād like this, or wanted to do this, and so on.
All of this goes, is moving on to controlling people at work. So by now, thereās the beginningāactually it began in Sweden, but itās now expanded hereāof placing chips in working people with an inducement. If you agree to have a chip inserted then you get, you know, free access to the coffee machine, and you can do all these interesting things, so people do it. But it also controls your actions. Like if youāre in an Amazon warehouse, they already have systemsāwhich is backbreaking workātheyāve worked out the quickest routes between this spot and that spot.
And if youāre one of these people racing to try to keep up with a schedule, and you deviate from the route, you get a discredit immediately. You get an instant warning if you take off a little time to say hello to a friend, you get a warning. UPS is using it to control truck drivers. So if you back up when you shouldnāt have, you get a warning. If you stop for a cup of coffee when that wasnāt on your schedule, you get a warning. Theyāve, in fact, they claim theyāve increased efficiency; these people internalize all this, and you race to keep to the commands, and they can claim they can now have more deliveries with fewer drivers, and so on.
This is beingāthe kind of model towards which society is moving is already illustrated to a substantial extent in China, where they have very heavy surveillance systemsācameras, you know, the devices that keep track of you, and so on. And you get aāthey have what they call a credit system, social credit system. You get a certain number of points, and if you, say, jaywalk, violate a traffic rule, you lose points. If you help an old lady across the street, you gain points. Pretty soon all this gets internalized, and your life is dedicated to making sure you follow the rules that are established. This is going to expand enormously as we move to whatās called the internet of things. Meaning every device around youāyour refrigerator, your toothbrush, and so onāis picking up information about what youāre doing, predicting what youāre going to do next, trying to control what youāre going to do next, advise what you do next. And in a way, Huxley was kind of right. People may not see it as intrusive; they just see it as thatās the way life is, the way the sun rises in the morning.
RS: Well, go further than that: they define freedom as consumer sovereignty. And they think of having choices about shoes to buy or the best bargaināthatās what Amazon specializes ināis a very shriveled notion of freedom. Because if you actually think of political freedom, or social activism, or being involved in the moral life of your community, then you will be a little wary of this information being out there. But I just want to make one point about this. What Edward Snowden revealed more than anyone elseāand something I think you would be very familiar with, being at the sort of center of a lot of this technology at MIT for so many yearsāthereās a close connection between what the private sector can get and what the government has. And Snowdenās great revelation was that thereās no wall between Google and Amazon and the government. In fact, we now know Amazon is developing the cloud to keep all this information for the government, for the CIA, for the intelligence agencies.
So getting back to these dystopian models, we actually have the situation where people, in the manner of Huxley, give up their information because theyāre taking the drug, consumerism, or whatever it is. But we also have the Orwellian image of Big Brother knowing everything, because we know the NSA and the CIA and every other agency has gotten all this information from Google. And so the question I want to put to you, is this the end of time for our species? And is this a reflectionāand I know this is going to sound alarmist, but I reread your book, Hegemony or Survival, which was I think 2003. So by the standard of the internet, it was very early. And you mentioned there that the typical life of a species is 100,000 years. Thatās one thing I got from it. And that we may be coming to the end of this disfavor, of however it happens. And secondly, itās an open question whether being smart, as we define smart, is an important way of averting disaster and preventing the disintegration of the species.
And you leave it as an open question. The reason itās a relevant question right at this moment is because we had the best and the brightest, as David Halberstam had described them, who gave us the Cold War and gave us Vietnam and gave us Iraq and everything else and, you know, gave away the money from Main Street to Wall Street, and all that. And now we have somebody who people like to think of as very crude, boorish, ill-mannered, which is Donald Trump. And we have Trumpwashing. Suddenly the smart, liberal people who created much of this mischief are now whitewashed, or Trumpwashed, by this buffoon. So I would like to ask you, first of all, are we in the end of times in that sense? And what is this battle, as I will define it, between Clintonism and Trumpism?
[omission 13:19 ā 13:52]
NC: Well, you raise a lot of points. I should say thereās a kind of a subtle structure to the book that you mentioned, which may be too subtle for anyone to notice. It begins, the book begins with the discussion by the great biologist Ernst Mayr, who pointed out thatāhe did mention that the average life of a speciesāitās been tens of billions of speciesāis about 100,000 years; thatās not far from us, weāre maybe 200,000 years. But the point he was making is that intelligence seems to be a kind of lethal mutation. If you look through theāwhatās called biological success, what allows the species to survive and proliferate, turns out as you move up the scale of what we call intelligence, capacity to survive declines. So the species that are really very successful are beetles, for example, which have a fixed niche; they never change. Everything changes, the whole world changes, but they stick to their niche and keep reproducing and theyāre fine. In fact Julian Huxley, Aldousās brother, who was a great biologist, was asked once what biology had taught him about God. And he said what he had [been] taught was that God loves beetles. Because thereās a huge number of species that are all over the place, they do great. Another species that does fine is bacteria, the dumbest of all, but they mutate very quickly. So they adapt to whatever comes along.
As you move up to, say, mammalsāsay bigger mammalsātheir capacity to survive declines. What about when you get to humans? Well, you could argue thatāand this is, let me just say at the very end of the same book, thereās a quote from Russell. Russell is asked, when will there be peace on earth? And he says, there will be peace on earth after all higher organisms have disappeared, and weāre back to the bacteria, and so on; then, there will be peace. Thatās basically the structure. Now, if you think about it, weāve been around for a couple hundred thousand years, weāre supposed to be the most intelligent speciesāwe are now proving Mayrās thesis. Not so much for the reasons you mentioned, which are bad enough, but we are racing to destroy the possibility of organized human life. And itās a cooperation of those who call themselves the best and the brightest, and the Trumpian boors, andāall doing it. So Iām sure the CEOs of ExxonMobil and JPMorgan Chase know as much about global warming as we do. But they areāand they know, certainly, that continuing to do what they doāmaximize the use of fossil fuels, pour money from the banks into development of fossil fuelsāthey know for certain that thatās going to destroy the possibilities of organized human life, not in the very distant future.
Go to the other end, Trump cares about nothing but himself. I donāt think thereās another idea in his mind, just me. What is he doing? Well, heās following whatās good for me: keep his main constituency happy, the rich and the powerful, and somehow control the others. And one way to do it is by saying, letās maximize the use of fossil fuels. Letās use more coal, letās use more energy, letās be the greatest country in the world. We now are again the major producer of fossilāof oil, surpassing Saudi Arabia. Itās wonderful, letās all cheer.
Does he know whatās going to happen? Well, even he knows. So he knows, for example, that sea levels are rising, itās dangerous. In fact, heās appealed to the government of Ireland to allow him to build a wallāyou know, he loves wallsāto protect his golf course in Ireland from rising sea levels. His administration came out with one of the most amazing documents in human history. The transportation administration came out with a long, I think, several hundred page environmental assessment study, which predicted that by the end of the century, temperatures will have risen seven degrees Fahrenheit. Thatās what climate scientists describe as cataclysmic, about twice the level at which organized human society can survive. And they drew a conclusion from that. The conclusion is we should not put any more emissions controls on automobiles and trucks. Why? Sound argument. Weāre going over the cliff anyway, so why not have fun?
So here you have the spectrum, all racing toward disaster, perfectly consciously, a great testimonial to human intelligence. And thatās only the beginning. Thereās something else, whichāat least this, some people are talking aboutāthereās another danger, at least as extreme, which is barely discussed. And thatās the greatly increasing threat of nuclear war. Greatly increasing. Not only the nuclearāthe new nuclear strategy study, which is bad enough; Obamaās before it was also pretty awful. But also the dismantling of the entire arms control system which has kept us, more or less, barely alive. Anyone who looks at the history of the nuclear weapons period knows that itās kind of a miracle that weāve survived this long. Well, there was an arms control regime. One core part of it was the ABM Treaty, which George W. Bush dismantled. The second major part was the INF Treaty, negotiated by Reagan and Gorbachev, that reduced sharply the threat of nuclear war for 20 years. Trump has just abandoned it, and thereās barely a word about it.
And furthermore, immediately after abandoning it, the Pentagon carried out a test, obviously long-planned, of a missile that violates the treaty. Just pleading with the Russians and others, please make up, develop missiles to destroy us. The Open Skies treaty, initiated by Eisenhowerāit was a different world thenāthatās the next one on the chopping block, wonāt do that. The New START treaty is next; the administrationās already said theyāre not going to sign it. That ends the arms control regime; we are now free to create more and more destructive weapons to ensure that others do the same. If you read the announcements from Lockheed Martin and other arms control producers, theyāre ecstatic, getting huge contracts to figure out ways to destroy us all and to make sure that others do it, too. Hardly a word said about this.
This is intelligence across the board, OK. So maybe Ernst Mayr is right, and human beings will demonstrate that [itās] untrue that itās better to be smart than stupid. Weāre supposed to be smart; look at what weāre doing. Thatās quite apart from the systems and surveillance and control that youāre talking about. These are the major issues in all of human history. Thereās never been a moment in human history when we had to make a decision whether the species is going to survive in any recognizable form. And other species with it; weāre now destroying species at a rate thatās never been seen before. In fact weāre getting to the point, if you look at the temperature rise and the percentage of CO2 particles in the atmosphere, weāre going back to periods hundreds of thousands or even millions of years ago, when the sea level might have been 25 or 30 feet higher. What does that tell you about human life? What are we doing about it? Maximizing the effort, with the United States in the lead. Every other country in the world is trying to do at least something; the United States alone has pulled out of even the weak Paris agreement, and is now dedicated to maximizing these twin disasters. Other countries are bad enough, but weāre in the leadāthe most powerful, richest country in history. This is somethingāthere are no words to describe this.
RS: Well, this is exactly what caused Bertrand Russell to be considered controversial, and then smeared, when he pointed out the obvious: that the mutual assured destruction strategy of nuclear warfightingāin fact, he used the example not so much of the beetles, but of the survival of the cockroaches, another dumb species. That if you had this great policy that came out of very enlightened administrations, mutual assured destruction, all-out nuclear war and so forth, that it would be the cockroaches and the beetles that survived. And intelligence came into it as a way of more effectively rationalizing, or to use a word youāve written a lot about, propagandize the public. Itās very skilled. So we argued, our best and brightest, for example, asāand itās interesting, weāre doing this recording on a day when the Washington Post revealed that they had gotten through the Freedom of Information Act, basically, the Pentagon Papers of the Afghan war.
That this war has been a lie, just as the Vietnam War was a lie. We didnāt, weāre not doing it for any of the reasons that were shared with the public. That basically, you know, lives were squandered, and resources, for no purpose. And as we know, in Vietnam, the ignominious loss of the Vietnam War by the U.S.āthey always said āyou canāt just get outāāwhen we lost in the most ignominious defeat, communist China and communist Vietnam went to war, and it did not increase the security threat to the United States.
So the best and the brightestāand thatās why Halberstam used that titleāused their intelligence to lie more effectively, to propagandize and so forth, and to tell the public stuff they knew was untrue. In fact the Secretary of State under Trump, who is now seen as a good guy, was the head of Exxon, Tillerson. And he could justāhe wanted to be a more effective liar. Itās not that he was going to really do anything about global warming.
So my point, really, is this is distinction without a difference between so-called liberals and conservatives. I mean, you have the Democratic Party, now is basically a warmongering party. They want to be even tougher. Instead of sayingāfor instance, it was Ronald Reagan who was quite a warmonger, but nonetheless he made the agreement with Gorbachev. It was Ronald Reagan who said that at ReykjavĆk in Iceland: we can step back. You know, after calling them monstersāoh no, we can. We can do some of this. And in fact now, for all kinds of irrelevant reasons, we want to have a new Cold War with Russia, we want to have red-baiting without reds. Itās an exercise in madness. Weāve given up any idea of arms control. And ironically, Trump actually from time to time makes more sensible comments about getting along with some of these people.
And at the core of it is something you have written about effectively. Itās the notionāI donāt know if you use that wordāof American innocence, American exceptionalism. And you know, this global warming started when, way back when you were writing and we wereāthey used to say 6% of the worldās population using 60% of its resources. And the waste that was built into the advertising society, and so forth. And it justāI think if I were to take your wisdom in a nutshell, it would be: beware of the people of power, and avarice, and wealth. Because the more intelligent they are, the better theyāll be at distorting reality and convincing us that whatās good for them is good for the world when itās just the opposite.
NC: Well, you raise a great number of points. [Laughs] Be good to go after them point by point. But letās start for a minute with the Pentagon Papers. The way the Pentagon Papers is interpreted, almost universally, is exactly the way you interpreted it. The PentagonāI remember an article by Hannah Arendt in the New York Review, calling Washington ācity of liesāāthe Pentagon Papers showed they were lying to us. I donāt think thatās what the Pentagon Papers showed. The focus of discussion about the Pentagon Papers is almost entirely on the 1960s. If you look at The New York Times selection from it, itās the 1960s. And yes, there was a lot of distortion and deceit, and self-deceit and so on in the sixties. But the Pentagon Papers go back to the 1940s. And if you look back at the early partāwhich I did writing about it at the time, in factāyou see a rational picture.
And in fact if you look at that picture, the idea that the U.S. failed in Vietnam becomes much muddier. Why did we get into Vietnam? Well, you look back around 1950. A majorāin the late forties, the United States was kind of ambivalent about how to deal with the imperial systems. On the one hand, it wanted to support its alliesāactually clients, by that timeāBritain, France, Holland, and so on, which would have meant supporting their imperial systems. On the other hand, the United States was dedicated to what it called an open world in which U.S. multinationals, which were just developing at the time, would be free to exploit, to gain resources, to invest without any impediments. So no closed regions, all open regions, which we would expect to dominate. That meant opposing the imperial systems.
So thereās a quandary. And different decisions were made in different cases, by thinking about what the best way to do it was. When we got to Vietnam, this was right after whatās called the fall of China. The loss of China, a very interesting term; the assumption is we own it, we lost it. That was a huge event that led to McCarthyism and so on. At that point, U.S. policy toward Vietnam changed. Before that, it had been ambivalent. But the decision was made to support France in its effort to reconquer its former colony. And there was a reason. Itās the reason that underlies, that runs all through history. Itās ridiculed as the domino theory, but though itās ridiculed, itās never abandoned, because itās correct. So therefore you go back to it, time after time.
The idea was put nicely by Henry Kissinger: when thereās a virus that spreads contagionāthe virus is independent development, out of control of the United States. If that spreads contagion to others, weāre in trouble. Others will follow the same rule; the system of domination and control will erode. How do you deal with a virus thatās spreading contagion? Well, you kill the virus and inoculate the victims so they wonāt be infected. Thatās exactly what was done in Vietnam. Vietnam was smashed. Itās not going to be a model to anybody. Surrounding countries were inoculated by imposing vicious, brutal military dictatorships. No infection there; theyāre going to be controlled.
And it worked. In fact, the telling point was Indonesia. They didnāt care much about Vietnam, but Indonesia they did care about; very rich in resources and so on. When Suharto took [power] in 1965, that was just killing hundreds of thousands of people, instituting a vicious regime of torture and murder, all described pretty accurately, with euphoria. It was a āgleam of light in Asia,ā as the Timesā liberal correspondent James Reston described. You know, hope where there was none, and so on. Why? Because it ended the threat of contagion. In fact, in later years McGeorge Bundy, who was national security adviser for Kennedy and Johnson, he reflected that they probably should have ended the war in 1965, the Vietnam War. Because it had already been won. Vietnam was already smashed. The surrounding countries were now safe.
And what they were really worried about in 1950 was Japan. The Asia historian John Dower, famous Asia historian, called Japan the superdomino. They were concerned that if Indonesia and Burma and Thailand accommodated to move in a path of independence, Japan might join this system as its industrial commercial center, and they would be, the rest of Southeast, East Asia would be the surrounding resource area. Whatās that? Thatās what Japan tried to construct during World War II. Thatās the new order in Asia. In 1950, U.S. planners were not ready to lose the Pacific War. This was disgraceful, but rational planning. And if you think about the consequences, it pretty much worked.
Now, you look at Afghanistan, the papers that came out this morningānotice what theyāre focused on. Incompetence. Stupid decisions. We didnāt know what we were doing, and so on. You go back to, take Russia in the early 1980s. If we had internal documents from Russia in the early eighties, Iām sure we would find the generals, political analysts saying what weāre doing in Afghanistan is incompetent. We donāt know what weāre doing. Itās a mistake, we should do it differently, and so on. Is that the problem with the Russian invasion of Afghanistan? No. Is it the problem with the American destruction of Indochina, that there were lies and it was incompetent? No. All of this is deep-seated propaganda, internalized. Weāre looking at the wrong thing, because that supports American innocence. If you say we were stupid, we made mistakes, and so onāwell, we can still be the most idealistic, wonderful place in the world; anybody can make mistakes. If you look at the actual planning, and the reasoningāwhich was not silly, and in fact is duplicated over and over. The comment I quoted from Kissinger was about Allende. He said Chilean social democracy is a virus that might spread contagion. How is it dealt with? By installing the Pinochet dictatorship to kill it at its heart, to kill the virus. Installing brutal, vicious military dictatorships throughout the entire region. Thatās pretty much duplicating the same reasoning.
And you can give case after case. And it goes back way before in the history of imperialism; you go back to King George the Third, time of the American Revolution. His concern was that this rise of republicanism in the British colonies could be a virus that would lead to a call for republicanism elsewhere, and the whole British Empire would erode. This is standard imperial history. Weāre right in the middle of it. Itās not American exceptionalism. Itās American conformity to standard imperial history, along with the propaganda of innocence, exceptionalism, and so on. And interestingly, the best and the brightest are accepting the propaganda. Thatās what theyāre focusing on. Not the rational imperial planning; the implementation of it, which unfortunately is pretty successful. Many millions of people are paying for that. Thatās what we should be thinking about.
RS: OK, youāre going to have to go, and weāre going to have to tie it up. But I want to get to what we were going to talk about at the beginning, the question of Israel. So Iām going to cut this short. Iām not disagreeing with anything you said. And by the way, the value of the Pentagon Papers was it showed we lied about the very reason for going in, and putting Diem inā
NC: They didnāt lie about it. If you look, about the early years, itās described accurately. In the sixties, they were lying about it, thatās true. Because they were stuck and didnāt know what to do.
RS: OK, but when they hadāI donāt want to go through the whole history, but when they had Tom Dooley and the Catholics fleeing, and they presented Vietnam as a totally CatholicāI mean, we can go through the tissue of lies. But I do want to make one point here, I donāt want to drop it, and I think itās an interesting point. If we think, yes, imperialism is an outmoded model, or itās a model thatās difficult to defend; itās not the model that, say, Tim Cook of Apple would favor, or Sergey Brin of Google, or many of the people who have come out of MIT or Stanford or other places. They believe, actually, in a kind of virulent capitalism, including having dominance in particular industries and so forth.
And that modelājust as communism turned out not to be nationalist, turned out to be highlyāI mean, turned out to be highly nationalist, not internationalist. The Vietnamese really cared about Vietnam, and they had their own grievances with China; the Sino-Soviet Dispute was a reality going back to the 1920s. Tito was really the model we should have studied rather than, you know, some notion of communist imperialism, which is a fiction. And in fact, the communists turned out to prove Karl Marx right, which is capitalism was a stage that comes before socialism. It doesnāt replace socialism, and it ends the idiocy of rural life and builds big cities, et cetera, as he said in the manifesto.
So the real issue was, was the Cold War necessary? Could we have had American economic dominance and trade and so forth in a more truly open society, where they could do it with one form or another, and one degree or another of state involvementāand China is a perfect example. Itās now very a successful capitalist, state capitalist country, up to the point where it is now; Vietnam is following in that. And so all Iām saying is that they were irrational in trying to hold to an imperialist model at the very time when England and France knew it was not economically viable, and you have to abandon it. So, but leaving thatā
NC: I donāt agree with that. England and France were trying to sustain their imperial model. And in fact, the imperial model that was developed was very successful. Suppose that the United States had really, in the forties and fifties, had allowed countries to go their own way. Suppose that theyād said, OK, Vietnam, you want to develop independently, out of our controlāfine, go ahead and do it; youāll be successful. Thailand followed, Burma followed, Indonesia followed; Japan joined in and became the center of this system. Would U.S. multinationals be able to dominate the world? Take a look at todayās world, OK.
Thereās a kind of aāwhen we look at national power, what people look at typically is GDP, gross domestic product. And you look at U.S. share of GDPāitās declined. It was maybe 40% in 1945, then maybe 25% by 1970, maybe 17% today. It looks like a decline. But take another measure. Take a look at theāhere Iām quoting very interesting work by a young political economist, Ken Starrs. Suppose you look at the dominance of the economy by U.S.-based multinationals. Itās spectacular. U.S. multinationals control about 50% of the global economy, ownāown 50% of it. In just about every areaāmanufacturing, retailā
RS: Thatās my point. My point is itās a more effective model than sending the troopsā
NC: No, this is the imperial model, which succeeded. It prevented other countries from moving toward independent development, and therefore led to a situation in which U.S. multinationals dominate the world. If they had moved to independent development, weād see exactly what weāre seeing with China today. Itās moving toward independent development; U.S. is trying to prevent it. The policies, shared bipartisan policies, are to try to prevent Chinese [independent] development. So if China, for exampleāyou know, the mantra is āChinaās stealing our jobs.ā Is China stealing our jobs? They donāt have a gun to the head of Tim Cook, saying invest here. The U.S. multinationals are losing our jobs. But we donāt want China to develop as an economy.
Thatās why the bipartisan programs are to prevent China from doing the things that make the economy successfulālike industrial policy, to have a state industrial policy. We see that thatās successful; we want them to stop it. Kind of interesting, because thatāsāeconomists and others, if they believe a word theyāre saying, ought to be cheering. According to their theories, if the state intervenes in the economy, itās going to harm the economy. But everyone knows the opposite is true. In fact, we ourselves have a massive state industrial policy. Thatās why you have things like computers and the internet and so on, itās mainly public funding. But we donāt want China to have that, because theyāll be successful, theyāll be out of our control; that we donāt want. Thatās what the kind of concern was in the fifties. So I think the imperial model has been very successful. Itās led to a situation in which itās primarily designed for the benefit of U.S. capital, which has succeeded beyond belief.
RS: Well, I think thatās absolutely true. The question is whether in this multinational worldāand again, I need to get to these other pointsābut whetherāand weāll see; this is a real test with the whole argument about holding China back. Because for the individual companies, Apple makes a lot of money from China. China delivers a docile workforce; you know, itās stable. And so the Chinese so-called communist model has turned out to be much better than if we had conquered China or returned Chiang Kai-shek to power, who controlled it.
NC: Thatās right. But as soon as itās beginning to get out of control, thereās a bipartisan agreement, backed by capital, to try to prevent their development. Now on a much smaller scale that happened in Vietnam, happened in Chile. Itās happened over and over again, even happened with Grenada if you want to look at it. And thatās a standard imperial model that goes back way before we picked it up. And overall, itās been pretty successful. There were things that didnāt work out. But for the main drivers of American policy, which is concentrated capital, itās been a pretty successful system.
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