Merger mania and the fascist danger
By Gus Hall, national chairman of the Communist Party USA
This article was reprinted from the May 23, 1998 issue of the People's
Weekly World. For subscription information see below. All rights
reserved - may be used with PWW credits.
There are some new, dramatic developments that are radically changing
the basic economic structure of our country. They are also affecting
the U.S. political scene and the ideological arena. Worldwide, these
developments are greatly accelerating features of globalization.
They are complex developments that influence each other as well as the
whole picture. Recently, these relatively new developments have come
together to produce a new overall situation.
They are difficult to assess. However, they are of such immediate
importance that it is necessary to attempt an analysis, for many
reasons, but especially because they will impact our policies and our
tactics.
Globalization
The first development is the continuing mega-merger mania sweeping the
corporate world. The sheer size, scope and extent of the mergers and
acquisitions are literally changing the world economic structure.
Globalization has now emerged as a new form of imperialism. It has
become impossible to assess the globalization process without updating
the basic character of U.S. imperialism especially.
U.S. imperialism is totally involved in the ongoing globalization
process everywhere. It is the main player and influence all over the
world.
The financial crisis in Southeast Asia, most profound at the moment in
Indonesia where the whole economic and political structure is
crumbling and where there is a revolutionary struggle in progress, is
the direct result of globalization and the power of speculative
venture, finance capital.
Together with the IMF and the World Bank, which are mainly controlled
by U.S. imperialism, conglomerization is a big part of the worldwide
crisis of globalization.
Of course, in Asia great power chauvinism and super-exploitation
impose additional pain and suffering on the racially and nationally
oppressed peoples of these countries. Most of the global corporations
have become insatiable beasts, devouring everything everywhere that
will increase their profits and power.
All the past barriers have been conquered. Mergers across oceans and
continents have become routine.
Feeding frenzy
Marx predicted 150 years ago the historic development of capitalism
into monopoly capitalism when he said that the big fish would eat the
little fish.
But not even Marx could have predicted the incredible magnitude of
today's corporate feeding frenzy. In all history there has never been
anything like it.
Corporations are combining to the point where "big" no longer
describes the results. And, today, the "little" fish are big fish
being eaten by the even bigger fish, the global corporate monsters.
Thus, Marx accurately predicted the process, but could not have
foreseen the immensity of today's corporate giants. They have become
so huge that they can be likened to galaxies in the universe.
Some of the more recent mega-billion dollar mergers show the sheer
size of the combinations: Travelers-Citicorp, $70 billion;
SBC-Ameritech, $62 billion; BankAmerica-NationsBank, $60 billion;
WorldCom-MCI, $37 billion, Boeing-McDonnell Douglas, $16 billion;
Bell-Atlantic-NYNEX, $20 billion; and Daimler-Chrysler, $90 billion.
In relation to the Microsoft monopoly, there is a fierce struggle
between software corporations for profit share. Corporations in many
states are filing anti-trust suits, not because they are against
monopolies, but because they can't wrench a share of the market from
Microsoft any other way.
To show just one of the many problems caused by megamergers, no one
yet knows who is going to actually control and run some of the new
multinationals. For example will it be Daimler-Benz in Dusseldorf or
Chrysler in Detroit?
Supposedly, Dusseldorf will be the "big boss," but I think Detroit
will really be running things. How the trade unions conduct the
struggle against the new multinational conglomerates is a big
question.
New financial empires
It is only with such concentration and mobility of capital that
financial empires like Travelers and Citicorp can handle transactions
that total in the multi-billions.
Almost every area is seeing monopolies take over, but especially in
the fields of telecommunications, electronics, auto, computers,
software and banking.
In fact, it is the relatively new banks and financial institutions
that make mergers and globalization possible. This includes worldwide
institutions like the IMF and World Bank, which are the main
instruments of the globalization process.
Everywhere, smaller banks are being acquired, liquidated, closed down.
The resulting financial empires squeeze out smaller banks that serve
small businesses, communities and consumers. Congress' recent
deregulation of banks has given great impetus to bank mergers.
Finance capital wields enormous, unprecedented power, which it uses
not only to withhold financial resources from smaller companies, but
also to dominate and control whole areas of our economy.
These vast financial empires have a bigger and ever-growing role and
influence throughout the world. This also changes the basic economic
structure and the politics and ideology that support it.
We have to take note of the new Mutilateral Agreement on Investments
(MAI), which would strengthen the ability of the transnationals to run
roughshod over labor, consumer and environmental protection, and, most
importantly, would remove all restrictions on the mobility of capital.
It is no wonder there is a growing worldwide movement against it.
The mass media
There are also all kinds of merger side effects. For example, behind
closed doors monopoly corporations and banks are buying out most of
the mass media and propaganda outlets. Corporate control over the flow
of information is almost total.
Banks, financial empires and reactionary billionaires are buying up
whole networks, publishing empires and media conglomerates.
Newspapers, including the New York Times, are increasingly under the
heel of the right-wing forces. Reactionaries like Rupert Murdoch are
taking over individual newspapers and newspaper chains.
Like many other public institutions - schools, hospitals,
transportation - there is a growing privatization of publicly owned
outlets.
Huge private corporate interests are buying out radio, television and
film production companies. Writers lose any semblance of independence.
Movies, television and video are under the domination - right-wing
domination - of empires like Disney and Time-Warner. Programs, like
"The McLaughlin Group" on television and Rush Limbaugh on radio, are
under the ideological influence of their right-wing financial backers.
Although Wall Street and Corporate America contend that bigger and
bigger monopolies are good for the country, there is a growing concern
among some bourgeois economists and business commentators whether or
not this is true.
In the May 17 New York Times "Week in Review," in an article
subtitled, "Fear of monopolies is as passe as the jitterbug, but new
concerns are emerging," Peter Passell said, "Indeed, most of the hard
evidence from past mergers ... suggests that mergers do as much harm
as good. Mergers are too often the progeny of executive megalomania
and deal makers' dreams of year-end profits and bonuses."
Because of the new developments, together with the ramifications of
advanced technology, computers and robots, dealing with the merger
mania has become even more critical to the trade union movement and
the whole working class.
In a recent speech to a Democratic Party meeting, AFL-CIO National
President John Sweeney expressed concerns about the megamergers and
said the trade unions will have to become much more organized and
stronger to fight the new corporate structure.
Also, Sweeney recently charged that "corporations, right-wing
foundations and conservative lobbying groups are mounting a
coordinated campaign all across the country to silence the voice of
working families in the political process."
He said the enemies of labor are seeking revenge for labor's recent
victories on the picket line, at the ballot box and in the defeat of
"fast track."
Fascist danger in U.S. politics
Another area of change is in the political arena. The latest
fascist-like political developments and the corporate merger mania are
related.
Global corporations are the support base for ultra-right forces. The
bigger the corporate monopolies, the less democratic, the more
anti-union, anti-labor, anti-working class they become.
Thus, politics in the United States are more and more a reflection of
the new role and power of the global corporations, the new level of
state-monopoly capitalism. This is the main reason why there is an
increase in the activities and boldness of the extreme right,
fascist-like wing of the Republican Party.
The greatly expanded power of the extreme right, fascist-leaning
forces in the Republican Party is the main reason there is a big split
between them and the moderate wing of the party.
Republican Rep. Newt Gingrich, the gang leader of the most extreme
right forces in Congress, who disappeared from public view for awhile,
has now reappeared with a vengeance.
He has called Clinton an "illegal man," unfit for the presidency. His
latest slander is that the Clinton administration is the equivalent of
the vile talk show host Jerry Springer.
Another extremist Republican, Rep. Dan Burton, chair of a House
committee investigating Clinton, released doctored jailhouse tapes of
Webster Hubbell's telephone calls from prison in an effort to prove
the Clintons' guilt.
The fascist-like nature of developments is most clear in the
unconstitutional and anti-democratic structure and activities of the
so-called independent prosecutor's office.
Kenneth Starr is growing bolder. The more unpopular he is, the more he
is challenged, the more arrogant he sounds.
The grand jury and House hearings have usurped the power to subpoena
hundreds of people without proper authorization. People like Susan
McDougal and Webster Hubbell are being maliciously prosecuted for
refusing to lie about the Clintons. Others are refusing to appear by
taking the Fifth Amendment.
These right-wing extremists are trying to run Congress by denying
basic democratic, civil and human rights. They openly violate the
first and fourth amendments and break one law after another. It is
judicial terrorism.
Kenneth Starr is the right-wing front man for multi-millionaire,
right-wing extremist Richard Mellon Scaife, who has bankrolled the
whole "get Clinton" vendetta. Scaife has but one aim: to fasten
corporate control on government at all levels. To attain this goal he
has given $150 million to right-wing organizations.
To buy Starr's services, Scaife put up money for a new school of law
and public policy at Pepperdine University in Malibu, Calif. and
offered the position of dean to Starr.
It was only when news of the cozy deal leaked out that Starr announced
he would not take the position and would instead continue his witch
hunt.
The ultra-right forces coalesce around Starr because they think he can
ultimately set the wheels in motion to bring down the Clinton
administration, damage the Democratic Party and thus give the extreme
Republicans more power.
These forces are trying to destroy the presidency because it is a
vital part of the democratic structure.
They are deliberately scheming to achieve this by destroying the
current administration, thereby reducing the power of the presidency
itself.
How to win
The new ultra-right danger will be reflected in the coming elections.
The Republicans, whose speeches and activities have become more and
more fascist-oriented, are going all-out to tip the balance in
Congress.
This is a very good reason to greatly increase our efforts in the
electoral arena. If we are going to influence the coming elections we
have to start now.
Opposition to the ultra-right and fascist-like politics should be our
policy. We must speak out, expose all such forces and activities. The
growth of this danger forces us to consider what kind of opposition
can be organized.
There is a need for many more anti-corporate, pro-labor candidates,
for broad electoral coalitions.
We have to find more effective ways to build coalitions with the labor
movement, with the racially and nationally oppressed. The fact is that
now most progressive politicians are African American. The candidacy
of Ras Baraka - now in a runoff for the city council in Newark, N.J. -
is just one example of how people respond to a candidate who is
anti-corporate and pro-labor, against the ultra-right.
Clinton's popularity is not because people think he's a great
president. It is because the American people fear the ultra-right more
than they disapprove of Clinton.
Add to this the total insecurity and lack of confidence in the system
itself and you see why there is a growing anti-right-wing,
anti-corporate mood. This is opening the door to defeat all the
extreme right-wing forces and increase our party's influence in
opposing the fascist danger.
We have to find ways to unite with independents, including members of
the smaller parties. We have to recognize that, in spite of
weaknesses, most progressive forces are in the Democratic Party.
Most of labor is in the Democratic Party and supports Democratic
candidates. If we can help organize broad coalitions, they also will
be in the Democratic Party.
There is a need for Communist candidates who can play an especially
important role in opposing the ultra-right extreme candidates. The
time is ripe to make big changes, to prevent a new ultra-right
takeover and to mount an effective movement against runaway corporate
greed.
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