In mid December 2017, The U.S. Senate voted through a tax-bill which will deliver a dramatic reduction in America’s corporate tax rate – from 35% to 20% – along with a reduction in inheritance tax which will allow the America’s wealthiest individuals to pass more tax-free money to their children (or other heirs). This Guardian article provides further details.
For A-level sociology students studying global development, this represents yet another example of a neoliberal policy – cutting taxes is a key aspect of the economic doctrine of neoliberalism.
The supposed rational behind the bill is to stimulate economic growth, but it is also likely to widen inequality and the bill is also predicted to add $1 trillion to the national debt
It’s also interesting to note that Donald Trump ran for president as an outsider who would stand up for the working people, but now it seems that it’s the wealthy, share-holding corporate class that’s going to benefit most from this policy.
Is it possible to perceive the making of modern America as a sort of colonial project? One in which the new American capitalist class colonizes the so called American wilderness for the benefit of Capitalism? This is the argument Andrew Brooks makes in his recent book – The End of Development:
On 4 July 1776 the newly independent United States of America consisted of 13 colonies that were formally ceded by Great Britain in 1783. The United States then expanded Westwards, and by the time of the Gadsden Purchase from Mexico in 1853, the modern boarders of the contiguous United States were established.
Formal territorial expansions were legally and politically essential. Annexation first provided new space for capitalism, then new Americans came, conquered and combined land, labour and capital to generate wealth. Fundamentally though it was the direct control and space and the westward advance of Europeans and their conflicts with other Americans that were the real means of making the nation.
The whole history of the United States is one of occupation and land seizure: rather than territorial colonialism abroad, there was unprecedented territorialism at home. Ironically, the American war of Independence (1775 – 1783), far from being a pure anti-colonial struggle, was rather a moment that enabled expanded imperialism led by the European Americans. Once the revolution had freed the settlers, they conquered the res of the North American continent and reorganized the space for capitalism. This meant removing the Native population to make room for an expanding immigrant population, as was advocated by Benjamin Franklin.
The popularization of the notion of ‘wilderness’ was a key ideological tool which promoted this expansion Westwards – the great interior of the new United States was portrayed as wild country which was the antithesis of civilization, full of wild savages, both of which needed to be overcome in order for progress to be made.
(Of course in reality, neither were true, many Native American Tribes had rich cultures which managed the land they had occupied for centuries in a sustainable manner).
In the 19th century, the American capitalist was a colonist at home, enjoying what the European capitalist had to travel to Africa or Asia to achieve: profits were accumulated through imported slaves, and later indentured Chinese labour on the Pacific Coast.
Profit was also accumulated via exploitation of Native Americans through trade. Indigenous peoples exchanged pelts for fish hooks, guns and knives, which benefited whites and forged a relationship of dependency.
Rifles changed the balance of power between tribes, causing warfare between native peoples, as well as intensifying hunting practices. Established cultures and ways of life that had existed for centuries were wiped out in a few short decades. For instance, muskets used by Metis hunters nearly wiped out buffalo in the Red River valley of North Dakota.
Fur trading was one of the first major economic activities, but American capitalism soon diversified and grew as it learnt the lessons of the industrial revolution in Britain, and it was a rapid industrialization as the USA was both unencumbered by old social relations such as Feudalism, and all the necessary resources to fuel industry were on home soil.
Ultimately, Brooks argues that any time Washington, Hamilton, Adams or Jefferson referred to the ‘Federal Union’ in their presidential address, they were really referring to the process of forging an American Empire – except they didn’t need ships to go and do it in far away places, they had plenty of ’empty’ territory right next door.
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