GERMANY


Some tendencies of today's imperialism (2)

 Germany

The German imperialism is the strongest power within the EC. Europe is its main bastion. At present, Germany counteracts its relative weakness in comparison with the USA and Japan above all with the support given by the EC and by alliances and compromises with others, especially with France. But technologically (above all in the telecommunication industry) and from the importance of its spheres of influence, it seems to be positioned behind the USA and Japan.

Therefore, the German imperialism tries to catch up and to become itself the world's number one. By massively abolishing workplaces and by sweating the workers, it tries to snatch up the immense capital sums for conquering spheres of influence in Asia and America. First of all, its hope is oriented towards a uniform economic area from the Atlantic to the Ural, including 850 millions of people. Step by step, the EC is extended.

But on this way there arise innumerous difficulties. Russia on the one side is seriously weakened as imperialist country but nevertheless defends its own interests against "Western influences". And until now, it is still an important military power. In Western Europe there are strong rivalries between Germany, France and Great Britain and also a considerable presence of capital coming from the USA and Japan.

In Eastern Europe, different imperialist powers are in rivalry for hegemony. The position of Germany is not uncontested.

How the power relations of the imperialist countries are and how and by which alliances they try to strengthen themselves has to be investigated much more precisely. More precisely, too, we have to analyse the international distribution of capital exports and the spheres of influence. Till now, we can make nothing but relatively vague statements. Whatever the temporary advantages of one imperialism are in comparison to the other ones, the other ones, too, try to acquire such advantages. But sooner or later and in different forms and degrees of development, they all suffer from their insoluble basic problems.

Does Imperialism Mean Peace?

The leading big powers promise peace. They declare that capital of today is dependent of international co-operation and that therefore wars between them are no more possible.

Indeed: in the decades since the Second World War there was no direct war between them. The reasons are clear.

Both world wars began in Europe as wars between Germany on the one hand and France and Great Britain on the other hand. The USA entered both wars later. After the Second World War, the USA established themselves in Europe economically and militarily. All European powers had been weakened, victors as well as losers. The USA had become the almighty world power. Germany and Japan, the aggressive imperialist powers which had started the First and the Second World War, were economically and militarily so weakened that they have not been a match for the USA till today. Meanwhile they recovered economically but are till now essentially weaker, especially regarding military matters.

The competition between imperialist powers was, for a long time, veiled by the danger resulting from socialism and from the peoples' struggle for freedom, later on from the rivalry between the new imperialist superpower Soviet Union and the USA as the dominating Western superpower. After the breakdown of the pseudo-socialist Soviet Union, competition between the old imperialist powers has become more prominent.

Still there are certain possibilities of expansion for the financial capital of the leading imperialist countries.

It has penetrated the broken down or still existing pseudo-socialist regimes and tries to integrate them within a division of labour dominated by its interests. Every power tries to make its own sphere of influence (America, Asia, Europe) the centre of world economy.

Although weakened, the USA imperialism is still hegemonic, has the largest GNP of all imperialist countries and still concentrates 20 per cent of the world's production (immediately after the Second World War 40 per cent). It still concentrates the largest sum of exported capital, it is the world's most powerful military power. Japan and Germany, though officially only, do not dispose of own nuclear weapons.

A war between the USA, Japan and Germany will be as long improbable as the power relations will not have essentially changed to the disadvantage of the USA and as Japan and Germany will not have been completely rearmed.

War will not be possible as long as the equilibrium between the big powers will not have been so disturbed that the struggle for predominance will be makeable by military means only.

But the power relations still continue slipping. The unsteady development of the imperialist countries is one of the fundamental laws of capitalism. Japan and Germany have the aim of reconstructing their old spheres of influence and of expanding them, they strive for complete rearmament. At present, they try economically to defeat the USA and by this to undermine the military hegemony of the USA.

The necessity of imperialist wars results from safeguarding the exported capitals or the spheres of capital investment respectively and the supply of cheap raw materials against one another. Having extended their economic activities far beyond their own territories and living from the exploitation of the work of other peoples, the imperialist countries made themselves highly armed in order to defend their spheres of influence against liberation wars, against rivals or other disturbers.

This is the reason, too, for the fact that military expenditure has not been essentially reduced after the break-down of the Soviet Union.

The military expenditure worsens the living standard of people by charging them with higher taxes and reducing the social security expenses and makes possible that the armament industries get fantastic profits by their monopolist position. The giant military expenditure especially of the USA retards the economic development, too.

As a result of the superiority of the USA in the decades after the Second World War, wars were first of all conducted in order to defend or extend the imperialist spheres of influence of their own. Often imperialist powers made use of the tactics of the financing of civil wars with the aim to bring regimes acceptable for them into power instead of intervening themselves with militarily means. (So they did for instance in Nicaragua, Mozambique, Angola etc.)

The decay of the pseudo-socialist multinational states into national states produced a lot of wars, supported by imperialist powers which had the aim to extend their own influence.

The wars -in whatever form- conducted by imperialist states exclusively serve them to carry on their economics and politics by other means, i.e. by militarily ensuring their influence zones of the plundering of foreign nations. Now, Japan and Germany start creating the conditions of militarily ensuring their great power ambitions abroad. The motives are not that they feel responsible for the world's peace but they want to ensure and to extend their spheres of influence regained by capital exports.

Taking side with imperialist countries in such wars cannot be our matter. Might they even make out their operations to be humanitarian interventions in order to rescue lives of people, such operations will remain types of imperialist influencing control.

Is imperialism able to be ecological?

Capitalism does not only ruin the health of people but despoliates nature, too. Producing, if possible, without poisoning the air, the water and the soil would reduce the profits.

Producing with priorly testing the effects on health of working people or the consequences of the products for the consumers would reduce the profits.

Every investment in preventing the damage of environment is a disadvantage of location, a disadvantage in competition with those who do not do so. The Japanese imperialism thanks its quick rise not only to the exhausting of manpower but also to the exhausting of nature and thereby of health of people.

Protection of environment may become an advantage in competition, too, provided the elimination of damage becomes itself a branch of industry and a source of profits.

Protection of environment becomes in such case a mean for imperialism to dominate its competitors. Especially the German imperialism is the world-wide leader of environment techniques. At the same time, Germany continues undauntedly participating in further poisoning the environment.

Methods of producing recognised as harmful for the environment are used as long as the investments are remunerated at a maximum amount. Techniques of production friendly to the environment are not taken up as long as they do not result in a maximum profit.

The anarchy of capitalist production, which may in fact be capable of planning within the frame of a single capitalist's own enterprise but not within the frame of whole society, has disastrous consequences for the protection of environment.

And this because of the fact that the hole in the ozone layer, the dying of forests, the pollution of air etc. are objective consequences of the activity of all capitalists, subjectively perhaps not wanted by this or that factory owner, but nevertheless inevitable.

The poisoning of environment, having a more and more adverse effect on men, has become a further source of impoverishment by sickness, crippling, premature death and lifetime health impairment.

The exhaustion of nature is also visible in built-in obsolescence of products and in lavishing with raw materials and products which are thrown away on rubbish after use.

Doing so is -by increasing the price of commodities- a source of extra-profits. Careful use of raw materials would cheapen the cost of living.

The parties responsible for damage to the environment shift the consequences of their activities onto us as long as they can do so. The rising of prices and taxes reduces the living standard of the working people furthermore.

The most important precondition for ending the poisoning of environment will be that producing for private profit interests is no longer the main objective of production, i.e. that private capital will have been expropriated. Imperialism which makes the striving for maximum profit the main criterion of economy will never be capable of becoming an ecological social system.

At best, it makes efforts of shifting the production injurious for environment into other countries or of exporting toxic waste and of rolling off the problem upon other nations in an imperialist manner.

This problem created by imperialism itself becomes a mean of demonstrating its technical and moral superiority in comparison to dependent capitalist states.

Ecological questions are far away from replacing the social questions. On the contrary, the working class is most hard suffering from damage to the environment while the rich idlers have the opportunity to protect themselves very well.

Ecological questions depend on the property and disposal relations in economy. The deciding matter is whether those disposing of property of the means of production act in the interest of whole society or in the interest of an end in itself such as the accumula­tion of capital (or the ruthless fulfilling of plans in the pseudo-socialist countries). Ecological problems have become important questions of class struggle. Ecological damage hinders the unfolding of productive force as growing powers are tied to repair of damage. Imperialism can neither be social nor ecological.

Surplus Capital

The more the living conditions of the working class in the industrial countries are worsening, the more the surplus capital is augmented and strives desperately after possibilities of investment.

On the one hand higher profits, on the other hand narrowed internal markets - this contradiction results in surplus capital. This is one of the reasons for the exploding increase of surplus capital in Japan unequalled in history till now. In Japan the rate of consumption is lowest. Industrial consumer goods are by 80 per cent more expensive than abroad. The level of prices in the high cartellised market is generally high.

Surplus capital further stems from the profit resulting from capital exports and flowing back into the metropolitan centres. Especially Great Britain, the world's eldest industrial country, has become a state of coupon owners who are getting large parts of their profits from abroad. The economic activity of the British middle class (bourgeoisie) within Great Britain is more and more concentrated on administrating the own surplus capital as well as that of other countries. From the world's most important industrial metropolis London has turned into the world's biggest financial centre.

The surplus capital is alimented, too, by surplus exports of commodities (above all from Japan and Germany).

Because of the growing contradiction between production and consumption, an increasing portion of the commodities is exported. The upcoming nations such as Japan and Germany have large surplus balances of trade. With the artillery of dumping prices, every tries to fire the enemy to the ground. Above all, Japanese monopolies are masters of dumping. They are forced to break all records of export as the living standard of the own masses is relatively low and additionally reduced by cartel prices.

Surplus capital is also produced by advantages from currency relations. The more a currency, as consequence especially of deficits in trade balance, is devalued (like the dollar) the more the value of surplus capital of imperialist countries with a stronger currency is increasing. The devaluation of the US dollar to the half doubled the capacities of capital exports especially from Japan and Germany. The impediments for commodities exports by means of devaluation of currencies produce strong pressure in direction of expansion of capital exports. The weaker a currency of a country is, the more the upcoming imperialist countries are able to penetrate with their capital. In this way their decay is accelerated. (Above all, Great Britain and the USA are examples of decay.)

On international level, surplus capital is supplied by the profits of the bourgeoisies of different raw material exporting countries, for example by the revenues from the OPEC states and the million millions of dollars squeezed out of the oppressed peoples and exported into the metropolitan centres by corrupt cliques and families.

Beyond the national money markets, there arose markets of Euro-money, of petrodollars etc., administered by banking institutions acting on an international level. Hundred thousands of millions of dollars drift from place to place outside the borders of their countries chasing after investment. They form a strong basis for currency speculations and other speculations.

Surplus capital of imperialist countries increases with the exploitation of the workers of the own country. Most flagrant is the exploitation of Japanese workers. Because of their strong patriarchal half feudal mentality, it is possible to submit them to the interests of monopolies in a higher extent than in Western countries. They work very long, are easier satisfied with a relatively low standard of living. This is the main source of the strength of the Japanese imperialism. The modesty of Japanese workers is praised by the competitors as a positive example for their own workers.

Lower Rates of Investment

It is the logic of capital that, in conformity with the systemic laws of capitalism at a certain point, the rates of investment at home must sink as, because of the narrowed internal markets, the enormous amounts of capital fail to have enough possibilities of investment in production. The riper and the more worn out an imperialist country is, the deeper are, in general, the rates of investment. They are the lowest in the USA and in Great Britain, the highest in Japan.

But the rates of investment decrease in all imperialist countries. On the face only, the decreasing investment activity is the consequence of a lack of capital. Having enough possibilities to make quick money by financial investments, capital is less and less invested in production. It is the striving for maximum profits which forces the financial bourgeoisie to remove capital masses from production into financial investments. Decreasing investment rates demonstrate the ascendancy of financial investors over industrial capitalists.

This fact resulted in the paradox that within the imperialist countries a gigantic surplus capital is confronted with a growing army of people who have been made superfluous and jobless.

Between these both poles there stands the barrier of capital with its chasing after maximum profits. Manpower and the created richness cannot come together because surplus money must be transformed into capital and is not destined for creating labour places or satisfying the basic needs of the broad masses of unemployed or the pauperising people in employment. By the logic of capital itself, surplus capital cannot be used for satisfying the needs of the own population. Expecting this would be a day­dream.

The fact that imperialism, at the same time, produces large surplus capital and a growing surplus of manpower is a problem by which imperialism will be ruined.

Instead of being used for fulfilling the needs of the own people and of other peoples, surplus capital becomes a mighty source of financial speculations massively disturbing industrial production. Surplus capital becomes a source of a more and more aggressive expansion in the struggle for supremacy in the world. And it is the basis for a growing parasitic role of monopoly bourgeoisie which dissipates its richness in a manner similar to that of the perished aristocracy of the 18th century.

Valves for Surplus Capital

Besides the capital exports, the surplus capital is seeking for profitable parking places in financial speculations, encumbrances and luxury consumption.

Financial Speculations

Accumulated by industrial concerns and financial groups, surplus capital increasingly plunges into objects of financial investment. On international level, stock markets, real estate markets, arts markets, bond markets, currency markets etc. boom under the pressure of workless capitals. A wave of speculation has caught imperialism. Buying and selling is the motto. The producing of material goods is of secondary importance.

Having broken relatively free, money markets have an obstructing influence on production by their high expectations in profits.

The majority of surplus capital is concentrated in the hands of banks. The banks use the largest part of their means not for production. In this respect, they are not at all prepared to take risks.

On the other hand, industrial concerns are more and more transformed into banks with annexed work­benches and research departments.

They prefer to invest surplus capital in stocks, state bonds and whatever forms of financial business instead of investing it in production. Whether Mitsubishi, Siemens or General Motors - profits gained by financial business dominate the profits gained by industrial production.

Why should they troublesomely convert new techniques in production while it is possible to buy whole trusts and sell them with million millions of profits? Or while they are able to buy real estates for hundreds of millions and to sell them more expensively or while they are able to make much more money by speculating with rates of exchange, commodity prices etc.?

Finance capital has an insatiable passion of opening new markets for capital investments. It finds them in unrestrainedly indebted states, enterprises and the working people. Above all, Wall Street is turning gigantic wheels in financial speculations. The strength of the Japanese imperialism partly consists in investing larger parts of surplus value in production than the USA or Germany do. But the reduced surplus capital in Japan, too, froths over into financial investments

Elaborated with a never seen productivity, the richness has more and more been used as play money by a very small social stratum.

The supremacy of the financiers over the producers is no casual event but a product of over ripeness of imperialism and its process of rotting.

The big banks are melted with the industrial combines so closely that their speculative activity cannot simply be surgically eliminated from the economic life. On the contrary, in growing extent, it penetrates the normal business activities of the chairmen of industrial enterprises.

The money investment markets as a whole have developed to a relatively independent economic factor. As money is a commodity like other commodities, too, money transactions and all kinds of financial investment business increase along with the growth of freely disposable capital and the amount of national income. The international flow of capital is by thirty times higher than the foreign trade with material goods. And the sales of the financial sector surmount the trade with material goods by a multiple. The profits gained on the financial markets are often higher than the profits gained in industrial production. This again becomes a criterion for capital invested in industrial production, too, and undermines the readiness to invest capital in the industrial production of the imperialist countries. It also promotes the fact that "industrial capital" strives for the creating of profits with state support or by cut in wages. Further it promotes the export of industrial production with below-average profit rates into other capitalist countries in which higher profit rates may be gained.

In spite of its relative independence, the financial sphere is not separate from production but involved in capital accumulation in production, from which it gets its means in the end.

On the one hand, the jugglers of finances get growing parts of the surplus value off the industrial producers. On the other hand, they remain nevertheless dependent on the latter, because they do not create any surplus value by themselves.

Of course, the stock markets are blown up by speculations with surplus capital, but nevertheless the stock courses continue reflecting the profit expectations in production. The growing relative independence of financial markets does not mean that these could completely peel off to become a "symbol economy". This itself is caused by difficulties of capital accumulation in production.

The normal overproduction crises are associated by crises of financial markets such as stock exchange crashes, currency crises or real estate crises which reinforce them or break out independently of them. In stock exchange crashes, large masses of surplus capital are exterminated. Currency crises accompany the decline of some imperialist countries and the rise of other ones. Real estate crises disturb the whole credit system as they diminish the coverage of credits and thus make their repayment uncertain.

Indebtedness

Capital surplus is the source of indebtedness unsteadily grown on international level especially during the eighties. In the USA but also in Japan and Germany (and in many other countries of the world), the national debts exploded, and with them the debts of enterprises and consumers, too. Thereby new, artificial markets were created. The huge need for capital in tendency led to a high level of interest rates. For that reason, industrial production is heavily impeded in addition.

The banks did not only submit industrial concerns but also the states. The means for doing so are national debts. As surplus cannot be used for the needs of working people -this would be in contradiction to the logic of capital- it becomes the basis for the fact that the capitalist state and the enterprises exist beyond their means. Both spend what has not been got by working. But in the course of wage disputes, the working class is told that those values only, which have been produced priorly, can be distributed. In the USA, the total encumbrances amount up to 12 million millions of dollars, that is the two-and-a-half-fold of the GNP

In the hands of capital, surplus capital changes from a blessing into a curse for the working people as they are forced to pay the gigantic encumbrances. The national debts must be repaid with increased taxes, with inflation and worsened social security, the debts of enterprises with additionally increased productivity of labour, with cut in wages or with unemployment in the case of bankruptcy. The creditor banks shift the risks of indebtedness of "underdeveloped countries" by reduced tax payments or by bankruptcies upon society. The debts of "underdeveloped countries" are paid by absolute impoverishment.

The working people become more and more the debt-slaves of financial investors and have to bring sacrifices for the financial investors' speculative businesses and have to work for the financial investors' chasing after interest. The tendency of declining standard of living is reinforced by this kind of plundering by bank capital.

On the other hand, working people, too, borrow more and more money in order to satisfy their level of needs rising with the quick technical progress. By doing so, their standard of living is declining additionally.

An important part of demand of the imperialist countries is financed by credits and thus is an anticipation of future. Surplus capital is the source of sham booms quickly bursting into pieces. It is an additional reason of crises and pauperisation created by crises.

Luxury consumption

A part of surplus capital is wasted in a fantastic luxury consumption by the financial bourgeoisie which shows its richness as openly as, in past, the aristocracy of perished feudalism did.

A growing part of capital owners stopped working because they can live by their capital investments free from worries. Worklessness is the precondition for their luxurious life style. On the other hand, joblessness of millions of working people is the basis of impoverishment of broad masses. The contrast between the poor and the rich, between the working class and the capitalist class, becomes starker.

Organised crime

A part of surplus capital is produced by organised crime. Trade with drugs, illegal exports of toxic waste, prostitution and gambling bring untaxed super profits which, in different forms, flow back into the circle of economy.

One has to add thousands of millions earned by tax evasion as well as bribe money. The imperialist economy has a strong tendency to violate valid law and to commit crimes because of the possibility of increasing profits by doing so. Criminal practices are not least a possibility of creating new markets and improving profits which would be too low in ordinary business.

How do the imperialist countries try to get out of the crisis?

Before all, the USA and Germany have to face strong phenomena of crisis but in a growing extent Japan, too. Their permanent aim is Improving their competitiveness against others. But in last consequence, all means to improve the competitiveness aim at ruining the competitors before being ruined by them, aim at making other peoples work more for the winner's profit. More or less all means serve to increase productivity and to diminish the demand for manpower. The losers are, above all, the masses of working people in all countries.

* Technological progress

Technological progress is the most important weapon by which capital tries to defend its existence. The incantation are innovations in the pioneer industries supplied by a greatest possible potential of researchers, engineers, specialists and skilled workers. The aim is production of key products which have to be realised, if possible, in a monopolistic way in order to create extra-profits and new possibilities of accumulation of capital.

Japan strives for predominance in communication technology. Japanese monopolies are very concentrated on semiconductor industry by which silicium as raw material for chips and the memory chips themselves are produced. The memory chips are the electronic components for computers, machines, consumer goods etc. In strategical view, control of the semiconductor industry is more important than control of oil. Today, Japanese electronics monopolies rule over the half of the world market of integrated circuits, a market of which two thirds had been ruled over by American monopolies at the beginning of the eighties. A similar development took place on the market for production machines of memory chips.

The pressure to concentrate greatest possible financial means on pioneer industries coerces everywhere (even in the USA) into making common, co-ordinated efforts by state, research institutions (think tanks) and monopolies, i.e. into entering a higher level of socialisation.

The means spent, for example, for research, development and production of a one-megabyte chip amount to thousands of millions and surpass the powers even of the biggest monopolies.

Under the pressure to be concentrated on high technology, financial capital tends to strive for abolishing the old branches of industry (coal mines, steel factories, shipyards, textile industries etc.) as well as agriculture. Such branches shall become the matter of satellite states, ascending capitalist countries which can produce such traditional mass products in a cheaper way by subordinating themselves to the leading high-technology states within a certain division of labour.

So capital shall be set free for occupation of technological key positions. The preaching of concentration on key industries silently includes capital exports and predominance over other countries.

And it includes growing unemployment, too, as new products depreciate the means of production of old products which are substituted by them. (For example, record production is replaced by CD production.) As these new production branches often are linked with reduced time of production, they also have a less demand for manpower. Quick, even revolutionary technical progress has already existed since decades. And it has not hindered mass unemployment but, on the contrary, was a reason for it.

Technological progress, applied in a capitalist manner, leads to reduced working hours and thus reduces the demand for manpower, too. And profit is increased at the same time.

A lot of proposals to improve co-operation between state, industry and science correspond with the aim of sponsoring technological progress.

* Improved division of labour

Some other measures serve to support the productivity by improvements of organisation of job requirements (e.g. lean production).

Departing from the Japanese practice, all imperialist monopolies have discovered the gold in the heads of their staff in order to elicit reserves of productivity for their economic war and thus for higher profits. In a high extent, American and German enterprises change over to lean production. In fact, in the technologically high-complicated production productivity can hardly be increased by staff waiting only for commands from the top. The high level of technical forces to enlarge the competencies to a certain degree, for example, in order to perform quality control already within the process of production. Functions of work are enriched in order to heighten attention and interest in work. The division of labour between mental and physical work to a limited degree is reduced, too, in order better to elicit the productive potential of workers.

Productive forces of today require creative men. And this especially in order to avoided failures which, on the level of a highly advanced technology, cost a lot of money.

Nevertheless, imperialism will never be able to awaken the creativity of working people in an extraordinary extent. Private control over the means of production and the corresponding hierarchy and arrogance, the growing concentration of capital and thus of decisions, the parasitic wealth, the application of capital for dubious financial business and growing social insecurity are, on the long run, no fertile soil favourable for increasing the motivation of the working class.

Increased productivity is placed as a weapon against working people to make them jobless and to lower their standard of living. Lean production, generally adopted, will lead to the dismissal of a half of the employed.

* Flexible working hours and extension of working time

Intensification of efficiency of work per unit of time is strived for with different methods. The basic motive is calling, if possible, for work only if work really is needed (instead of fixed working hours with unproductive phases). Types are part-time jobs, flexible working hours with inclusion of extended working times if necessary etc.

Under the conditions of capitalism, however, every increase in productivity reduces the demand for manpower and thus raises unemployment.

Productivity is the artillery with which in economic war one warring party tries to destroy the position of the other. New products and procedures, improved machinery are the wonder weapons with which the enemy shall be overpowered.

The more efficient technical weapons are used by one capitalist against the other one, the bigger becomes the amount of wounded and dead soldiers on the side of the working class in all countries.

Under the conditions of capitalism, increasing the productivity results in aggravating the contradiction between production and consumption and thus in deepening the crises and enforcing the international competition.

* Cuts in wages

The insoluble contradiction between production and consumption results in a retardation of the growth of industrial production and, in tendency, in declining rates of profit. The very simple method of increasing the profit rates consists in cuts in wages. Today, all imperialist countries compete with each other by reducing the wages. Such cuts in wages may most evidently show that the imperialist countries do not only lead their rivalry against each other but each country against its own working class, too.

* Cuts in public expenditure

The reduction of social welfare, too, is a mean for raising the profits. Assistance for unemployed and social assistance are cut down in order to increase the readiness to assume low-income jobs.

They are shortened, too, because the state has to save money in order to satisfy the demands of the capitalists for subsidies and to collect the money for repaying the national debts. The systems of social security are eroded in order to create new markets for the huge insurance trusts.

All that results in the imperialist countries' decreased capability of pacifying their inherent contradictions with the aid of social expenditure.

* Reduction of taxes for capital

Profits remaining in every enterprise canbe increased by reducing the capital taxes. Initiated by the USA, the maximum tax rates for capitals profits in all imperialist countries have partly been reduced very largely since the early eighties. The pretext was to allow the enterprises higher investments because they allegedly suffered from a lack of capital. At last, however, the surplus capital grew, because the investment rates continued everywhere falling down in spite of the sunken capital taxes and increased profits. The causes of sinking investment rates do not consist in a lack of capital, but in narrowed internal markets and at the same time, in a growing productivity.

Profits gained by financial business or by speculation often are lower taxed than profits from production. This fact evidently demonstrates the predominance of the finance system over production. The interest on debts can be subtracted from the capital income to be taxed not only in the USA. By this, running into debts is supported.

Increasing the surplus capital and thus the basis of lucrative investment possibilities by all means is the trademark of imperialism being overripe.

Everywhere decreased capital taxes are compensated by increased indirect taxes. This, too, leads to lowering the standard of living and thus to an aggravation of the contradiction between production and consumption. In conclusion, the supporting of investments by reducing the capital taxes exactly aggravates the contradictions which led to the sunken investment rates.

Does more investments mean more workplaces?

Cuts in wages, increased productivity and reduced capital taxes allegedly are necessary to enlarge the means for investments in order to create more jobs by doing so.

In reality, there does not at all exist any lack of capital but a large capital surplus. By this all methods of increasing the profits tend to be methods further to increase this capital surplus.

By the way, investments are no cure-all for joblessness but, on the contrary, they create joblessness, under the conditions of capitalism, on the level of whole society as they replace manpower by machines without creating new jobs for the dismissed manpower in a planful manner. Under the conditions of capitalism, technical progress is a sharp weapon against the working class. What a curious increase of productivity which, on the one hand, destroys the productive forces of millions of people and, on the other hand, increases these forces for less and less people on the level of individual enterprises? Whatever methods of increasing the productivity will be adopted they will at best serve to give certain enterprises or economies advantages in competition with other ones. As a whole, joblessness is increased by these means. Caused by the world capital, the world­wide joblessness is increasing while some imperialist countries are able to moderate the consequences for themselves at the expense of other peoples.

Fascism and Racism

Everywhere, fascist forces become stronger. This reflects the enforced rivalry between the imperialist nations. Struggling for dividing the world, they all fight for a better place in the sun for their respective monopoly capital. Doing so, they demand the expansion of their territories and the open oppression of other nations.

Fascism works on oppressing the contradictions within its own country and on submitting all things to the international expansion of the capital of its own nation in order to change the power relations to its own country's favour.

In Germany and Japan, fascist forces are revanchists, too. They openly strive for the restoration of the previous imperialist empire of the time before the end of the Second World War. And they consider the fact that they did not win the war to be the root of all evil.

Fascism and imperialism belong together.

Racism and national arrogance have their roots in the real economic predominance of some superior nations over other ones. Racism is an apology of the parasitic role imperialism is playing by plundering other nations. In all imperialist countries, nationalism and fascism are promoted to strengthen the forces for submitting rival countries and for creating new possibilities of the own development at the expense of other peoples.

Future

Accumulation of capital as an end in itself comes to its borders as it undermines its own basis on national and international level. Imperialism is the worst enemy of imperialism by itself.

Above all, the danger of a dramatic break-down of the financial system rises because surplus capital is invested in a lot of speculative objects and devalued in different forms. And this by the impossibility of debtors further to pay interest rates and redemption rates or by the devaluation of the blown up values of stocks and of real estates.

The industrial development of capital will bring impoverishment to a growing number of people in the metropolitan centres as well as in the "underdeveloped countries". Capitalism and imperialism have crossed their zenith and enter a phase of stagnation and decline.

But at the same time, there are fantastic technological possibilities. Electronics are the means for inserting more and more functions of the human brain in the control mechanisms of machines, installations and consumer goods. A production process in which working hours can be reduced to a minimum and in which men more than ever before are able to concentrate themselves on the "realm of freedom" may become reality.

What a nonsense that these revolutionary possibilities are used by the imperialist states as weapons of war in order to undermine the wealth of nations.

The revolutionary technical development partly makes industries, which were the backbone of ascending capitalism, superfluous.

Coal, originally the most important source of energy for steam-machines and electricity, is on retreat. Production of electricity by industrial waste heat and by regenerative energy such as solar energy is on advance.

Superconductors seem possible, in which the transport losses of energy are reduced to a minimum. Decentralisation of producing electricity by combined heat and power generation and methods of saving energy could strongly diminish consumption of energy. Geothermal energy, water power and wind power will, on the long run, be superior sources of energy.

Steel, the supporting leg of machine construction, automobile industries and construction industry, is more and more replaced by new materials of superior quality. Electronics replace mechanics, make very miniature machines and products possible. Thereby, the consumption of materials such as steel is sinking.

Copper cables as conductive material are more and more replaced by essentially more efficient fibre glass cables. 30 kilograms of fibre glass, a synthetic material, replace one ton of copper wire.

More than ever before, the revolutionary technical possibilities of today require plans on the scale of whole society to prevent technical progress from changing to a social regress. A social authority has to work for seeking possibilities how, in spite of a rapid change, everybody can be active in a productive way. Today here and tomorrow there.

The possibilities to acquire knowledge, to develop individual capabilities, to satisfy individual needs and to plan and rule social processes have objectively grown because of the electronic revolution. The productive forces of information techniques can only be used within a social and economic order which consequently places on decentralisation and on acting on one's own authority. Such a democratic society is impossible with the high-centralised financial capital which subjugates us to its interest in maximum profits.

The contradiction between the wonderful possibilities mankind has elaborated and the incapacity of finance capital to use them for the sake of working people is growing.

The working class, being the biggest productive force, has to choose between being subjugated to its exploiters in their struggle for international predominance and hoping to get some crumbs of loot at the expense of other peoples on the one hand and striving for the aim to take the immense technological possibilities in their own hands and using them for the sake of whole society and of all peoples on the other hand. The precondition for this latter consists in liberating itself from every kind of exploitation and taking its fate in the own hands. The precondition for this alternative is expropriation of capital.

The working class has to choose between joining the plundering of other peoples on the one hand and struggling for an order of society which will be able to help other peoples in an unselfish manner.

A working class which joins the exploitation of other peoples will never be able to liberate itself The basis for the emancipation of working class is overthrowing the capital.

By the bourgeoisie, the immense technical possibilities created by the inventions and efforts of working people are not used for satisfying our needs better and better but for accumulating its own capital and strengthening its respective position in dividing the world into spheres of influence.

By the bourgeoisie, the immense productive forces are used insofar only as they promise profits for the owners of capital. This leads to an ever growing squandering of productive forces. The demand for working together, for satisfying social relations is undermined by competition, by the control power of private owners. More work along with less satisfaction through work corresponds to the absolute logic of the profit system and, at the same time, undermines the readiness for performance and thus productivity.

The immense richness and technological possibilities which have been created by us become a

threat for us. Instead of satisfying our basic needs they serve as a weapon to reduce our standard of living and world-wide to struggle for economic, political and military predominance.

Therefore, time is objectively ripe to snatch the means of production off the private control of profiteers and to socialise them. Modern productive forces since long have outgrown the private ownership which, till now, has tried to force them into its limited frame.

Industrial production without social means (banks, state means, stock-holders) without socially created preconditions (infra-structure) and without a high degree of socialised production (organised co­operation and division of labour within a trust and in its outside relations) is today no more possible. The private control over the means of production must be abolished. This only would result in a revolutionary liberation of the capabilities of the working people.

This only would result in circumstances where proceeds of socialised work which might guarantee everybody a live without grieves become the source of wealth for all and not for the impoverishment of the many.

This only would result in reciprocal support as decisive for the direction of development instead of the struggle of all nations against each other.

Communist Party of Germany (KPD)