The Bosses’ Profits Have No Ceiling
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The recent drama over the federal debt limit, with politicians in gridlock amid scare stories that the U.S. government might default on its bills, marks a significant move toward fascism by an embattled capitalist ruling class.
A default was averted when Democrats and Republicans agreed to at least $2.1 trillion spending cut over the next decade to counter a hike in the debt “ceiling,” the legal cap set by Congress on government borrowing. But the rulers’ internal crisis remains. The debt ceiling battle reveals their two essential needs in the current period:
To wring extreme profits from the working class with cuts in critical social services in a period of perpetual and massive racist unemployment.
To discipline their own ranks to help fund imperialist wars abroad and repair a crumbling infrastructure at home.
These imperatives are the hallmarks of fascism, the phase of capitalism that forces the ruling class to discard its mask of liberal democracy. President Obama recently took the lead on both fronts with his “Grand Bargain.” This ploy for “shared sacrifice” called for a devastating $3 trillion in spending cuts over the next ten years, alongside just $1 trillion in tax increases for corporations and the wealthiest Americans.
The Republicans’ “no-new-taxes” (on the rich) pledge, pushed hardest by the elements coalescing around the Tea Party, gives Obama cover to maintain his liberal credentials even as he ruthlessly targets the most vulnerable workers: the old, the sick, the poor. And as the first black president, he is the bosses’ perfect tool to impose racist cutbacks that fall most heavily on black and Latino workers, the same people who were hardest hit by the latest economic crisis (see box on page 5).
Capitalists Divided