The “proof” of the collapse of capitalism can only be the successful action of the proletariat in overthrowing it. … On the other hand, capitalism does not recover from its mortal sickness.
— R. Palme Dutt, “Fascism and Social Revolution”
SEATTLE (USA), December 22—The Boeing crisis heralds the arrival of a fascist US political economy.
Just days after Boeing shut down the 737 MAX assembly lines, Chief Executive Officer Muilenburg was fired. He walked away with an outrageous $58.5 million severance. Chairman of the Board David Calhoun replaced him. Board member Lawrence Kellner will become the new chairman.
After the MAX jets began crashing, the crisis that led to this shuffle developed openly. Behind the scenes, the disaster began in 2012 when the company rushed the MAX into production despite a fatal design flaw. Some on the shop floor referred to them as “flying coffins.”
At that time, Boeing executives required all employees to attend meetings that spelled out the competitive landscape as the bosses saw it. Soon China would be producing a similar commercial jet (scheduled to start delivery in 2021). The firm that came in second in the race between Boeing and Airbus would not be viable when China reached its stride. Three producers could not survive in the capitalist market. There would be a crisis of overproduction.
In communism, increased capacity would be good news. “We’re finally making enough planes. Now we can make other things, like trains, or improve the planes we make.”
That’s not how it works under capitalism. Overproduction sharpens economic competition and forces the capitalists to undertake desperate cost cutting.
To justify this cost cutting, they warned us about the falling rate of profit. They didn’t tell us that they planned to spend most of the profit we created buying back their own stock to artificially boost the stock price.
Here’s where the executive shuffle comes into play. The new CEO, Calhoun, comes from the Blackstone group, a private equity and hedge fund. It’s among the world’s biggest with about $600 billion in assets under its management and the world’s largest private property portfolio. The new chairman, Kellner, comes from Emerald Creek Equity, which focuses on real estate in Texas and California.
Neither of these companies produces a thing. As the rate of profit in manufacturing declines, their “way out” is to suck the wealth from industrial and related enterprises into the hands of the ruling class.
The new Chairman and CEO reflect the political economics of an era when capitalism can no longer rely on expanding production. Financial shenanigans replace expanding factories.
The fascist state is a natural outgrowth of this dying political economy. That’s why we call it the political economy of fascism.
Fascist attacks on the working class will reach levels we can’t yet conceive. Increasing destruction, poverty, war and decay mark the period. In order to survive, the fascist state intensifies racist, sexist, xenophobic and nationalist violence.
Bourgeois economists and media pundits ignore the basic character of the worldwide crisis. To them, the Boeing crisis is temporary, easily corrected by inspired leadership.
We would be equally in error if we expected the crisis to bring about the automatic collapse of capitalism.
We must now demonstrate that we have sufficient understanding and organization, close personal ties to the exploited masses, and the determination and skill to utilize this crisis to build for a communist revolution. Our immediate task is to expand the International Communist Workers Party (ICWP), with a special focus on recruiting youth, soldiers and the industrial working class.
Join us at the ICWP international conferences, where we will prepare to do just that.
The Multi-Billion Dollar Dilemma
The economic crisis increases the potential for war. The multi-billion dollar question for the ruling class is how to preserve war production in the era of the destruction of productive forces. This is crucial for Boeing, the second largest weapons producer in the US.
Over twenty years ago, McDonnell Douglas Aerospace was the “long-time dominant defense supplier.” It ran into problems similar to those Boeing faces now. The government forced it to merge into Boeing by denying it the contract for the Joint Strike Fighter.
More recently, U.S. car manufacturers faced a serious threat when the 2008 crisis of overproduction burst into the open.
The government bailed them out. The stipulations for this bailout included massive cuts in auto workers’ pensions and medical care. It drove the wages of autoworkers to a new low, putting the industry on the path to a minimum wage workforce.
Other than the equity big shots, the Boeing board is made up of ex-government politicians and military commanders. These political operatives are in a good position to enlist government bailouts if necessary.
These bailouts will come at a price, and not only to taxpayers. It’s conceivable that whatever pensions are left will be forfeited. Will Boeing workers be put on the path towards minimum wage as well?
The New York Times praises Calhoun as a turnaround specialist. Is this what the newspaper had in mind? You can bet he won’t sacrifice stock buybacks!
Whether or not these scenarios play out, or Boeing muddles through, the advance of fascist economics is assured. The growth of the ICWP is the only viable answer.