Merger mania and the fascist danger By Gus Hall, national chairman of the Communist Party USA This article was reprinted from the May 23, 1998 issue of the People's Weekly World. For subscription information see below. All rights reserved - may be used with PWW credits. There are some new, dramatic developments that are radically changing the basic economic structure of our country. They are also affecting the U.S. political scene and the ideological arena. Worldwide, these developments are greatly accelerating features of globalization. They are complex developments that influence each other as well as the whole picture. Recently, these relatively new developments have come together to produce a new overall situation. They are difficult to assess. However, they are of such immediate importance that it is necessary to attempt an analysis, for many reasons, but especially because they will impact our policies and our tactics. Globalization The first development is the continuing mega-merger mania sweeping the corporate world. The sheer size, scope and extent of the mergers and acquisitions are literally changing the world economic structure. Globalization has now emerged as a new form of imperialism. It has become impossible to assess the globalization process without updating the basic character of U.S. imperialism especially. U.S. imperialism is totally involved in the ongoing globalization process everywhere. It is the main player and influence all over the world. The financial crisis in Southeast Asia, most profound at the moment in Indonesia where the whole economic and political structure is crumbling and where there is a revolutionary struggle in progress, is the direct result of globalization and the power of speculative venture, finance capital. Together with the IMF and the World Bank, which are mainly controlled by U.S. imperialism, conglomerization is a big part of the worldwide crisis of globalization. Of course, in Asia great power chauvinism and super-exploitation impose additional pain and suffering on the racially and nationally oppressed peoples of these countries. Most of the global corporations have become insatiable beasts, devouring everything everywhere that will increase their profits and power. All the past barriers have been conquered. Mergers across oceans and continents have become routine. Feeding frenzy Marx predicted 150 years ago the historic development of capitalism into monopoly capitalism when he said that the big fish would eat the little fish. But not even Marx could have predicted the incredible magnitude of today's corporate feeding frenzy. In all history there has never been anything like it. Corporations are combining to the point where "big" no longer describes the results. And, today, the "little" fish are big fish being eaten by the even bigger fish, the global corporate monsters. Thus, Marx accurately predicted the process, but could not have foreseen the immensity of today's corporate giants. They have become so huge that they can be likened to galaxies in the universe. Some of the more recent mega-billion dollar mergers show the sheer size of the combinations: Travelers-Citicorp, $70 billion; SBC-Ameritech, $62 billion; BankAmerica-NationsBank, $60 billion; WorldCom-MCI, $37 billion, Boeing-McDonnell Douglas, $16 billion; Bell-Atlantic-NYNEX, $20 billion; and Daimler-Chrysler, $90 billion. In relation to the Microsoft monopoly, there is a fierce struggle between software corporations for profit share. Corporations in many states are filing anti-trust suits, not because they are against monopolies, but because they can't wrench a share of the market from Microsoft any other way. To show just one of the many problems caused by megamergers, no one yet knows who is going to actually control and run some of the new multinationals. For example will it be Daimler-Benz in Dusseldorf or Chrysler in Detroit? Supposedly, Dusseldorf will be the "big boss," but I think Detroit will really be running things. How the trade unions conduct the struggle against the new multinational conglomerates is a big question. New financial empires It is only with such concentration and mobility of capital that financial empires like Travelers and Citicorp can handle transactions that total in the multi-billions. Almost every area is seeing monopolies take over, but especially in the fields of telecommunications, electronics, auto, computers, software and banking. In fact, it is the relatively new banks and financial institutions that make mergers and globalization possible. This includes worldwide institutions like the IMF and World Bank, which are the main instruments of the globalization process. Everywhere, smaller banks are being acquired, liquidated, closed down. The resulting financial empires squeeze out smaller banks that serve small businesses, communities and consumers. Congress' recent deregulation of banks has given great impetus to bank mergers. Finance capital wields enormous, unprecedented power, which it uses not only to withhold financial resources from smaller companies, but also to dominate and control whole areas of our economy. These vast financial empires have a bigger and ever-growing role and influence throughout the world. This also changes the basic economic structure and the politics and ideology that support it. We have to take note of the new Mutilateral Agreement on Investments (MAI), which would strengthen the ability of the transnationals to run roughshod over labor, consumer and environmental protection, and, most importantly, would remove all restrictions on the mobility of capital. It is no wonder there is a growing worldwide movement against it. The mass media There are also all kinds of merger side effects. For example, behind closed doors monopoly corporations and banks are buying out most of the mass media and propaganda outlets. Corporate control over the flow of information is almost total. Banks, financial empires and reactionary billionaires are buying up whole networks, publishing empires and media conglomerates. Newspapers, including the New York Times, are increasingly under the heel of the right-wing forces. Reactionaries like Rupert Murdoch are taking over individual newspapers and newspaper chains. Like many other public institutions - schools, hospitals, transportation - there is a growing privatization of publicly owned outlets. Huge private corporate interests are buying out radio, television and film production companies. Writers lose any semblance of independence. Movies, television and video are under the domination - right-wing domination - of empires like Disney and Time-Warner. Programs, like "The McLaughlin Group" on television and Rush Limbaugh on radio, are under the ideological influence of their right-wing financial backers. Although Wall Street and Corporate America contend that bigger and bigger monopolies are good for the country, there is a growing concern among some bourgeois economists and business commentators whether or not this is true. In the May 17 New York Times "Week in Review," in an article subtitled, "Fear of monopolies is as passe as the jitterbug, but new concerns are emerging," Peter Passell said, "Indeed, most of the hard evidence from past mergers ... suggests that mergers do as much harm as good. Mergers are too often the progeny of executive megalomania and deal makers' dreams of year-end profits and bonuses." Because of the new developments, together with the ramifications of advanced technology, computers and robots, dealing with the merger mania has become even more critical to the trade union movement and the whole working class. In a recent speech to a Democratic Party meeting, AFL-CIO National President John Sweeney expressed concerns about the megamergers and said the trade unions will have to become much more organized and stronger to fight the new corporate structure. Also, Sweeney recently charged that "corporations, right-wing foundations and conservative lobbying groups are mounting a coordinated campaign all across the country to silence the voice of working families in the political process." He said the enemies of labor are seeking revenge for labor's recent victories on the picket line, at the ballot box and in the defeat of "fast track." Fascist danger in U.S. politics Another area of change is in the political arena. The latest fascist-like political developments and the corporate merger mania are related. Global corporations are the support base for ultra-right forces. The bigger the corporate monopolies, the less democratic, the more anti-union, anti-labor, anti-working class they become. Thus, politics in the United States are more and more a reflection of the new role and power of the global corporations, the new level of state-monopoly capitalism. This is the main reason why there is an increase in the activities and boldness of the extreme right, fascist-like wing of the Republican Party. The greatly expanded power of the extreme right, fascist-leaning forces in the Republican Party is the main reason there is a big split between them and the moderate wing of the party. Republican Rep. Newt Gingrich, the gang leader of the most extreme right forces in Congress, who disappeared from public view for awhile, has now reappeared with a vengeance. He has called Clinton an "illegal man," unfit for the presidency. His latest slander is that the Clinton administration is the equivalent of the vile talk show host Jerry Springer. Another extremist Republican, Rep. Dan Burton, chair of a House committee investigating Clinton, released doctored jailhouse tapes of Webster Hubbell's telephone calls from prison in an effort to prove the Clintons' guilt. The fascist-like nature of developments is most clear in the unconstitutional and anti-democratic structure and activities of the so-called independent prosecutor's office. Kenneth Starr is growing bolder. The more unpopular he is, the more he is challenged, the more arrogant he sounds. The grand jury and House hearings have usurped the power to subpoena hundreds of people without proper authorization. People like Susan McDougal and Webster Hubbell are being maliciously prosecuted for refusing to lie about the Clintons. Others are refusing to appear by taking the Fifth Amendment. These right-wing extremists are trying to run Congress by denying basic democratic, civil and human rights. They openly violate the first and fourth amendments and break one law after another. It is judicial terrorism. Kenneth Starr is the right-wing front man for multi-millionaire, right-wing extremist Richard Mellon Scaife, who has bankrolled the whole "get Clinton" vendetta. Scaife has but one aim: to fasten corporate control on government at all levels. To attain this goal he has given $150 million to right-wing organizations. To buy Starr's services, Scaife put up money for a new school of law and public policy at Pepperdine University in Malibu, Calif. and offered the position of dean to Starr. It was only when news of the cozy deal leaked out that Starr announced he would not take the position and would instead continue his witch hunt. The ultra-right forces coalesce around Starr because they think he can ultimately set the wheels in motion to bring down the Clinton administration, damage the Democratic Party and thus give the extreme Republicans more power. These forces are trying to destroy the presidency because it is a vital part of the democratic structure. They are deliberately scheming to achieve this by destroying the current administration, thereby reducing the power of the presidency itself. How to win The new ultra-right danger will be reflected in the coming elections. The Republicans, whose speeches and activities have become more and more fascist-oriented, are going all-out to tip the balance in Congress. This is a very good reason to greatly increase our efforts in the electoral arena. If we are going to influence the coming elections we have to start now. Opposition to the ultra-right and fascist-like politics should be our policy. We must speak out, expose all such forces and activities. The growth of this danger forces us to consider what kind of opposition can be organized. There is a need for many more anti-corporate, pro-labor candidates, for broad electoral coalitions. We have to find more effective ways to build coalitions with the labor movement, with the racially and nationally oppressed. The fact is that now most progressive politicians are African American. The candidacy of Ras Baraka - now in a runoff for the city council in Newark, N.J. - is just one example of how people respond to a candidate who is anti-corporate and pro-labor, against the ultra-right. Clinton's popularity is not because people think he's a great president. It is because the American people fear the ultra-right more than they disapprove of Clinton. Add to this the total insecurity and lack of confidence in the system itself and you see why there is a growing anti-right-wing, anti-corporate mood. This is opening the door to defeat all the extreme right-wing forces and increase our party's influence in opposing the fascist danger. We have to find ways to unite with independents, including members of the smaller parties. We have to recognize that, in spite of weaknesses, most progressive forces are in the Democratic Party. Most of labor is in the Democratic Party and supports Democratic candidates. If we can help organize broad coalitions, they also will be in the Democratic Party. There is a need for Communist candidates who can play an especially important role in opposing the ultra-right extreme candidates. The time is ripe to make big changes, to prevent a new ultra-right takeover and to mount an effective movement against runaway corporate greed. Read the Peoples Weekly World People's Weekly World home page Sub info: pww@pww.org 235 W. 23rd St. NYC 10011 $20/yr - $1-2 mos trial sub Tired of the same old system? Join the Communist Party, USA! CP-USA home page Info: CPUSA@rednet.org Phone: (212) 989-4994 PEOPLE BEFORE PROFITS!