Trump Torpedoing Globalism is Fall of World Socialism 2.0
by CHRISS W. STREET
28 Nov 2016
Donald Trump winning the presidency based on his promise to torpedo globalism came exactly 27 years after the fall of the Berlin Wall, and represents the second leg down for “World Socialism.”
Although U.S. history books declare capitalist United States the victor in World War II, it was World Socialism that ended up dominating most of the globe. Soviet Union and China carved out massive communist states, India adopted extreme socialism, and communist insurgencies were ascendant in Southeast Asia, Africa and South America.
Socialist governments controlled Western Europe and the idea that the state should play some kind of role in economic life was not seen as strange or unusual. Socialists differed on just how extensive the role of the state should be, but all agreed that “natural monopolies” like the railroad, phone service, health and electricity should be nationalized.
Paul Samuelson’s Economics was the top selling U.S. economics textbook from the 1960s through the 1980s. It proclaimed world socialism’s more efficient use of resources would allow the Soviet Union’s Gross National Product to pass the U.S. economy by 1984.
But mainstream economists failed to recognize that President Ronald Reagan’s policies of doubling down on capitalism through tax cuts and strangling the regulatory state in the 1980s would end the West’s inflationary spiral that had allowed communist resource-based economies to flourish. After the Berlin Wall fell on November 9, 1989, Russia was forced into a U.S. bailout and China adopted “Capitalism with Chinese Characteristics.”