View source for Brief:The U.S. Is Borrowing Its Way to Fascism

Recent political events in the United States have raised concerns about the emergence of fascism, a political system characterized by extreme nationalism, scapegoating of certain groups, aggressive foreign policies, and strongman governance. While fascism can take different forms depending on a country’s history and conditions, in the U.S., it seems to be following a unique path, influenced by capitalism’s deepening crisis and the evolving political landscape.

Although there have been noticeable displays of crude political theatrics, the true shift toward fascism lies in the country's evolving credit system. The crisis-ridden capitalist economy heavily relies on credit to sustain purchasing power for consumers and government programs. With corporations carrying significant debt and private lenders selling corporate bonds to the Federal Reserve, the state becomes increasingly central in controlling credit allocation. This state financialization is an essential feature as capitalism faces cyclical instability, a pandemic, social issues, and international competition.

The Federal Reserve plays a crucial role in providing credit on an unprecedented scale to keep the capitalist system afloat. Capitalists, who once criticized soaring government deficits, now understand that capitalism’s survival requires massive government, corporate, and household debts. This realization is pushing the country toward fascism, though not all those involved may be fully aware of it yet.

Fascism in capitalism emerges when employers feel that the system’s problems are too overwhelming to solve, necessitating strong state intervention for survival. It can also be a response to the grievances of capitalism’s victims, where a politician or party blames immigrants or minorities to gain a mass base and forms an alliance with capitalists. Once a fascist party acquires state power, it merges private capitalism and the state, enforcing capitalism’s rules in all aspects of social life.

In contrast, socialism arises when employees recognize that capitalism’s problems exceed its ability to solve them. Socialists seek systemic change, advocating socialized ownership of means of production, planned distribution of resources, and democratic worker-coop organizations of enterprises. They often aim to achieve international cooperation rather than nationalism.

The U.S. is experiencing a transition from private to state-controlled credit creation, with private capitalists and top political circles merging into a particular kind of fascism. While some may not agree with certain symbols or tactics used by Trump, the transition to fascism is already underway and accepted by the parties involved.

In summary, the U.S. is witnessing a unique path to fascism in American capitalism, driven by the country’s credit system and the shifting political landscape. As the state’s role in controlling credit grows, private capitalists and political circles are converging into a form of fascism that will have significant implications for the country’s future.
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