Democracy Ebbs, Facism Inches In

Germans embraced the Nazis, not because they were tired of freedom, but because they believed they had found a cure for capitalism.

From the time it began to take over the world, mid 17th century, until the late 19th century, capitalism provided a better life for its subjects. That is, it was better than serfdom. Serfs were landless farm workers, one step above slaves, who had to take whatever their lords dished out. “Free” labor could leave one employer for another and, to some extent, dicker over conditions of employment.

Capitalism Works Best With Limited Democracy

If workers believe they have a voice in government, they don’t have to be guarded, guided, and pushed to do everything. They don’t run away or deliberately smash the equipment, the way slaves or serfs might. They can be educated for the higher forms of labor that capitalism needs. Consequently, the more successful capitalist economic systems use a limited democracy form of government.

From the beginning of the Republic until after World War II, American struggles made good improvements in our democracy.

What Went Wrong, When Did It Go Wrong?

Capitalism stopped benefiting workers after it conquered the world. When there were no new markets, the capitalists had to turn against one another to fight for the markets they had already saturated. That’s not what they called it. They called it “The war to save democracy,” and “The war to end all wars.”

But WW I was really a bloody turf war between gangsters. For a short period, the winners enjoyed their spoils, but it didn’t last very long because  the basic problem of saturated markets and international competition was still there.

So, they decided to have another world war. This one was complicated for workers, because the Soviet Union, try as they might, couldn’t stay out of it. After they began to fight the invading Nazis, they were incorporated into the same side the United States was on. The U.S. ended the alliance as soon as the Nazis were defeated, of course.

No More World Wars

After the U.S. nuked Japan, actually, after the Soviets and other nations showed that they could do the same thing, world wars lost their appeal as a temporary solution to the capitalist crisis. Even the gangster capitalists weren’t crazy enough to blow up their only planet. So, since the late 1970s, capitalist nations have gotten by on small regional wars, lowering their production costs by attacking their workers, and carrying a whole lot of debt. I recently read, in an investment newsletter, that all growth in the United States since 1980 basically came from debt!

Did the Nazis Solve the Capitalist Crisis?

To Germans between, say, 1933 and 1939, it appeared that fascism was the right way to go. Unemployment dived from 25% into low numbers. Lots of infrastructure was rebuilt. National pride was soaring.

But they had only changed their form of government from limited democracy to fascism, they hadn’t changed their economic system. It was still capitalist and it was still in crisis. The only real way toward a temporary solution was war. Even then, as long as they were winning, fascism still seemed pretty good to the Germans. After that, not so much.

What Looks Good to You Right Now?

To a lot of Americans, the Trump Administration and Republican political domination look pretty good. They think there will be more and better jobs. They think they’ll be making a better living and that the steady abatement of basic democracy isn’t too high a price to pay.

But we are still living in an economic system that has provided all the good it is going to provide, and things are only going to get worse if we can’t save and expand our democracy.