Friday, October 11, 2024

Kamala vs. Trump: The Decline of America?



Left Voice
 author Sou Mi (who I think is female; apologies if I have that wrong) has written a think piece entitled Kamala Harris Wants to Revive an Empire in Decline. It's a well-written, worthwhile read that in my view is wrong in important ways. 

The confusion starts at the top. This is the "hook" paragraph--that's supposed to tempt you into reading the rest of the article.

As November pulls closer and the specter of another Trump presidency looms large, Harris is trying to present a different project for the future: one based in restoring a “rules based order” where the rules are fundamentally set by U.S. imperialism.

Only the last word grates--"imperialism" is a meaningless word that adds nothing to the paragraph. The paragraph would be better if she just omitted it, eg, rules are fundamentally set by the U.S. 

"Imperialism" occurs 22 times in the article, and all such mentions should be deleted, either as I illustrated above, or by substituting real institutions like "US foreign policy." Because foreign policy at least comes with an address (Foggy Bottom) and has somebody in charge (Antony Blinken). Unlike "imperialism," which is at best a vague conspiracy theory.

Otherwise she is quite correct--that Trump and Harris represent a decision point for American foreign policy. This observation is not original to her--it's been widely discussed in the mainstream media.

She paints the choice between the two this way. She says Harris

...has not only positioned herself as the heir to an administration that put diplomacy back on the table, but also presented a vision for the future: one based in the realization of an American leadership that will restore a “rules based order” through both diplomacy and might, and where the rules are fundamentally set by the U.S. imperialism.

This seems true. Kamala aspires to take us back to the good ol' days when America ruled the waves, owned the foreign exchange medium, and guaranteed world peace. 

Sou Mi accurately summarizes Trump's position, which I'll describe in my own words. Labelled "America First," it suggests that the US should withdraw from global affairs, mind it's own business, and as far as the rest of the world is concerned, let the devil take the hindmost. When the enemy gets within 12 miles of our shores, then and only then will the world's greatest superpower be roused to action.

I exaggerate slightly. Trump is not quite as hands off as I've described, but only because he's forced to compromise with reality. The US really does have trade relations with other countries that need to be protected, notably with Mexico and Canada, but also with Europe and S.E. Asia. Those trade routes will require US policing. And more, the US has cultural and religious allegiances beyond our shores, eg, Israel, which even though it is of no strategic value whatsoever, we are bound to protect. (It does have economic value.)

But at his core, Trump is a pacifist. He does not want America involved in any war. He follows in the tradition of two prior pacifists, Nixon and Reagan, both of whom described the American strategy as having the biggest, baddest, meanest military the world has ever seen--and then never using it. "Peace Through Strength" is how previous generations (and Sou Mi) put it. It's Trump's strategy to a tee.

So the debate is between "The War Party," represented by Kamala, Liz Cheney, the journalists at The Bulwark, the CIA, and most college faculty. And "the Peace Party," championed by Trump, Tulsi Gabbard, journalists at ZeroHedge, and (apparently) most of America's working class.

I'm not sure which side Sou Mi is on: is she pro-War or pro-Peace? I don't think she knows, so befuddled is she by all those imaginary "imperialists" floating around in her head. I also don't really know what side I'm on--I can see virtues in both points of view. But I'll be voting for Trump.

So why now? Why is this choice presented to the American public in this election? Sou Mi has an answer (my emphasis).

Harris’s proposals... come amidst the growing tensions of an empire in decline, especially amidst the retreat of globalization when the United States, based on the export of manufacturing and exploitation of cheap labor in the global south (and particularly through the restoration of capitalism in China), and debt-fueled consumption, was able to rearticulate a unipolar order behind it.

Sou Mi's view is that, with the "empire in decline," there are two possible responses. One is, in spite of that, to double down and re-establish our weight in the world. This is what Kamala proposes to do. The other is to retreat into a shell and acknowledge defeat--the Trump strategy. Or, instead of War Party and Peace Party, we can think of them as the Recovering America's Greatness Party and the Surrender Party (which weirdly reverses the terminology the parties use to describe themselves).

I dispute that America is an empire in decline. For good reasons during the Cold War, the US served as the world's policeman, and provided the world with a reserve currency by running huge trade deficits. This enabled an unparalleled period of global economic growth, including, most notably, in China (bringing 400 million people out of poverty). Sou Mi ludicrously describes it as an act of "exploitation," which it definitely wasn't. It was, instead, an act of great generosity (albeit extended only to America's allies--and not to miscreants such as Cuba).

The question thus arises, can America continue to be so generous? Trump says no; Kamala responds yes. The problem is that, while America has certainly gotten richer over the past 70 years, the rest of the world has gotten richer faster and caught up. So Sou Mi is partly right: in relative terms, the US has declined, and is therefore no longer able to finance global trade as it once did. While in domestic terms our trade deficit has not yet declined, today as a fraction of total global trade it is too small a percentage to finance global trade.

In finance parlance, this is known as a shortage of eurodollars--and countries that don't have enough eurodollars (eg, Sri Lanka, Bangladesh, South Africa, and on the cusp, China) are no longer able to import basic necessities such as food and fuel.

Whatever Kamala's intentions, she will not be able to reverse this relative decline in eurodollars, and the result will be a crimp in globalization. As there is no other reserve currency on the horizon, despite this shortage the Eurodollar will remain the world's reserve currency for the foreseeable future. The only country that can literally "print" eurodollars is the United States--we're sitting in the catbird seat.

Then there is our role as the global policeman. We guaranteed European borders, allowing European countries to all but defund their militaries. And likewise for Canada, Japan and the Philippines, among others. This, by itself, made people richer. We made the same guarantee to countries in the Middle East, fighting wars over Kuwait.

But being the world's policeman is expensive! And US taxpayers have to pay the bill. Trump has decided we don't need to do that anymore. For example, our efforts to keep the Red Sea open have come to naught--we're using million dollar missiles to shoot down the Houthi's thousand dollar drones, obviously not a sustainable operation. Technology has changed the nature of warfare. 

There's no reason for us to police the Red Sea--that's a job for the Europeans. We no longer have much interest in defending European borders. If Russia invades the Baltic states, we're probably not going to rise to their defense. We're not patrolling the Indian Ocean--India, Japan and China can fight over that one.

More, the Middle East is on its own. We still have an outpost in Qatar, but I predict that's not long for the world--Trump will bring them all home. The US has no dog in any fight over the Persian Gulf--we don't import any of their oil, and we have no reason to defend their sea lanes. That's up to the Europeans, Japanese and Chinese to work out. Good luck!

That's Trump's plan. Kamala says we're still gonna be the world's policeman. That's popular within the intelligence community and in the faculty lounge--but not among many common voters. It's one reason why I think she'll lose the election.

Sou Mi's article is worth reading. Apart from the gratuitous use of the word "imperialism," hers is an intelligent point of view.

Further Reading:

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