The Centers of Global Capitalism Are Migrating Away From the U.S., Europe and Japan

Global capitalism is shifting its primary centers away from traditional strongholds in the U.S., Europe, and Japan to emerging powers like China, India, and Brazil. Historically, capitalism concentrated in Western Europe and North America, where industrial and urban growth fueled economic dominance. However, the pursuit of lower wages and expanding consumer markets has prompted major corporations to relocate or expand into new regions, leading to significant economic growth in these areas.

China has become a notable leader among these new centers, achieving consistent economic growth even amid global challenges like the COVID-19 pandemic. In contrast, the U.S. and other older centers face stagnating wages, declining industries, and growing inequality. Companies in these regions increasingly rely on cost-saving measures like automation, exacerbating job losses and public debt while benefiting a small elite.

Emerging capitalist centers grapple with rapid urbanization, environmental challenges, and poor working conditions, akin to issues faced by older capitalist hubs during their industrial rise. However, their swift economic expansion has fueled both opportunity and unrest, with workers and social movements demanding better conditions and equality.

The global transition has also highlighted tensions between old and new centers, particularly between the U.S. and China. As power shifts, political strategies in older centers often focus on maintaining dominance rather than fostering growth, leading to internal divisions and scapegoating. Meanwhile, the wealthiest individuals continue to profit from developments in both regions.

This ongoing migration of capitalism raises critical questions about its future. Will the differing challenges faced by old and new centers lead to its decline or evolution? The potential for escalating conflict, including military struggles, underscores the uncertainty surrounding capitalism’s global trajectory.

Read the full article “The Centers of Global Capitalism Are Migrating Away From the U.S., Europe and Japan” by Richard D. Wolff

🔭   This summary was human-edited with AI-assist.