HomeOpinionWho pays the bill for the disaster?

Who pays the bill for the disaster?

To my Nicaraguan friend and brother

Luis Armando Guzman (El Chiri)

that we left before our time,

leaving us forever

his noble, combative, fraternal and supportive spirit.

Much more than a simple conjunctural crisis, the capitalist system is confronted with fundamental failures that are related to the contradictions that are generated in its monopolistic imperialist phase. The Covid19 pandemic has shown like never before the seams of the structure of world domination in which citizens are mere spectators who attend the drama of their own sacrifice in favor of the maintenance of capital.

Given this, the great centers of power in the West have sought antidotes that allow the treatment of evil not only in the immediate aftermath of the crisis, but above all by taking care to act towards the depths of the system.

But since cancer cannot be cured with aspirin, shock therapies are being used to exterminate those they consider a malignant virus that has penetrated their guts to destabilize them.

Thus, away from the powers, several of the countries that have been used as a model in the implementation of neoliberal systems of authoritarian and violent representative democracy, are collapsing under the impulse of people who show fatigue before an exclusion that places them at subhuman levels subsistence. These are the cases of Yemen, Chile, Colombia and Palestine, to name just a few, where the crisis becomes more dramatic.

In the very centers of world power, governments are rushing to take action that shows despair at the need to save themselves. In President Joe Biden's speech before Congress on the XNUMXth day of his assumption of the highest magistracy in the country, the need to increase social investment "in keeping with the most orthodox traditions of liberal Democrats" was highlighted. Cuban analyst Jesús Arboleya. By announcing some measures in this regard, Biden sought to respond to sectors close to Bernie Sanders who, after the senator's defection, were compelled to support the former vice president located politically at the opposite end of his party.

According to Arboleya, the problem that emanates from these proposals is given by the ability to specify them. The measures that fall within a typical Keynesian orientation refer to what more and more analysts are warning about Biden's interest in resembling his counterpart Franklin D. Roosevelt. But this fact reminds that Roosevelt had to respond in this way to face what until now was considered the greatest crisis in the history of the United States: the one that occurred between 1929 and 1933. This situation shows the size of the current crisis that through the northern power.

Among the measures taken more recently that are included in a package that amounts to 1.8 trillion dollars, stand out –according to Arboleya- “… multimillion-dollar relief plans for the economic effects of the pandemic and large state investments in civil infrastructure, […] billions of dollars to guarantee free access to community colleges, child care and improvements in the health system, which has been called the American Family Plan, to which was added the call to face related social problems with social equity, systemic racism, women's rights, the protection of the universal vote, gun control, care for the environment and better treatment of immigrants ”.

This new plan is in addition to a previous one for 2 trillion dollars dedicated to infrastructure, which is added to the 4,3 trillion dollars that have been allocated to broken down legislative actions (3,8 trillion) and administrative (0,5 ) of the 6,8 billion committed and the 2,9 billion (of the 6 committed)the Federal Reserve, all of which -in any case- is insufficient if one considers that the total cost of the pandemic in the United States is 16 trillion dollars, according to Juan Torres López, a Spanish economist, professor of Applied Economics at the University of Seville , citing David M. Cutler and Lawrence H. Summers (The Covid-19 Pandemic and the $ 16 Trillion Virus).

The problem of the problem is, then, to find the resources to make these proposals a reality. In this sense, the Biden administration can resort to inorganic issuance of money. More than anything else, they are the owners of the little machine that makes them and they will have no problem doing so, thus carrying the salvation of the United States to the entire planet. To this is going to be added another option aimed at raising taxes on the highest sectors of society, the owners of capital and large companies, which could upset the millionaires and generate conflicts

But, oh surprise! Although it is about raising taxes on the rich from 20% to 40%, there has not been the slightest opposition on their part. They realize that it is that or to start the transit through the route of hell since it is not possible to sustain a country that prides itself on being the greatest world power with a minimum income of 8 dollars per hour of work.

On the other hand, in a letter by Luis Casado already cited in previous articles, this Chilean analyst reminds us that the United States had taxes of 90% when they enjoyed their highest levels of growth. Citing "The History of Taxation in the USA", Casado states that: "For fiscal years 1944 to 1951, the maximum marginal rate for individual income tax was 91%, rising to 92% for 1952 and 1953, and returning to 91% for taxes for the years 1954 to 1963. For fiscal year 1964 the highest marginal rate for income tax was reduced to 77%, and then to 70% for fiscal years from 1965 to 1981 ".

It also tells us that the last 6 presidents in the 40 years since 1981 continued to reduce the tax burden on millionaires, taking it to 20%. That is the reason why - seen in historical perspective - this "increase" of 20% actually means a reduction of 50%, still highly advantageous to increase profits. Recent events, especially since the beginning of the pandemic, demonstrate this.

Someone could say that Biden became "socialist" taking typical measures of governments of that orientation that assume the preaching of a high intervention of the State in the management of the economy. However, basically, this reality is a clear manifestation of the dimension of the difficulties that afflict the system, without even the big capitalists expressing concern about the "decrease" of their profit levels if they are forced by law to assume a greater prominence in meeting the costs of the crisis