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07/04/2007: "USA faces "Soviet-style crisis""

The United States' inability to respond to industrial competition, their heavy deficit in high-technology goods, the upturn in infant mortality rates, the military apparatus' desuetude and practical ineffectiveness, the elites' persistent negligence incite me to consider the possibility in the medium term of a real Soviet-style crisis in the United States.

Q. Is American household consumption artificially stimulated?

A. (...) What has characterized the United States for years is the tendency to swell the monstrous trade deficit, which is now close to 700 billion dollars. The great weakness of this economic system is that it does not rest on a foundation of real domestic industrial capacity.

American industry has been bled dry and it's the industrial decline that above all explains the negligence of a nation confronted with a crisis situation: to manage a natural catastrophe, you don't need sophisticated financial techniques, call options that fall due on such and such a date, tax consultants, or lawyers specialized in funds extortion at a global level, but you do need materiel, engineers, and technicians, as well as a feeling of collective solidarity. A natural catastrophe on national territory confronts a country with its deepest identity, with its capacities for technical and social response. Now, if the American population can very well agree to consume together - the rate of household savings being virtually nil - in terms of material production, of long-term prevention and planning, it has proven itself to be disastrous. The storm has shown the limits of a virtual economy that identifies the world as a vast video game.

Q. Is it fair to link the American system's profit-margin orientation - that "neo-liberalism" denounced by European commentators - and the catastrophe that struck New Orleans?

A. Management of the catastrophe would have been much better in the United States of old. After the Second World War, the United States assured the production of half the goods produced on the planet. Today, the United States shows itself to be at loose ends, bogged down in a devastated Iraq that it doesn't manage to reconstruct. The Americans took a long time to armor their vehicles, to protect their own troops. They had to import light ammunition. What a difference from the United States of the Second World War that simultaneously crushed the Japanese Army with its fleet of aircraft carriers, organized the Normandy landing, re-equipped the Russian army in light materiel, contributed magisterially to Europe's liberations, and kept the European and German populations liberated from Hitler alive. The Americans knew how to dominate the Nazi storm with a mastery they show themselves incapable of today in just a single one of their regions. The explanation is simple: American capitalism of that era was an industrial capitalism based on the production of goods, in short, a world of engineers and technicians. (...)

Q. You postulate that the management of Katrina reveals a worrying territorial fragmentation joined to the carelessness of the military apparatus. What must we then fear for the future?

The hypothesis of decline developed in Après l'empire evokes the possibility of a simple return of the United States to normal, certainly associated with a 15-20% decrease in the standard of living, but guaranteeing the population a level of consumption and power "standard" in the developed world. I was only attacking the myth of hyper-power. Today, I am afraid I was too optimistic. The United States' inability to respond to industrial competition, their heavy deficit in high-technology goods, the upturn in infant mortality rates, the military apparatus' desuetude and practical ineffectiveness, the elites' persistent negligence incite me to consider the possibility in the medium term of a real Soviet-style crisis in the United States.

http://www.truthout.org/docs_2005/091205H.shtml