The current outsourcing and downsizing of manufacturing in the U.S. will eventually lead to fascism. A decrease in the contribution of a country's manufacture to its trade balance will lead to large trade deficits causing a drop in the value of a country's currency. When this occurs, an accompanying decrease in the living standard of its citizens will result in political unrest leading to the establishment of a political state under the control of a powerful ruling class. The U.S. is currently in experiencing the beginning stage of this process.
Post-war Germany is a good example of what occurs under these conditions. The German people's reparations payments to the victorious Allies after World War I were unsustainable and eventually led to an unwillingness of the working classes to continue their manufacture. The proceeds of almost all their production had been going to foreigners. This discontent and "revolt" of the industrial working classes led to an essential halt in manufacturing. Without production, there were no consumption items available for purchase by foreigners or industries in which to invest. The Reich's mark went into free-fall and hyper-inflation destroyed the wealth of the middle class. With a poverty-stricken populace and massive unemployment, the scene was set in Germany for someone who had the will and ability to to take control and correct this situation. The public was rightfully interested in a return to prosperity and were ready to accept whatever means were necessary to attain it.
Hitler and the Nazis were the means, backed by the remaining capitalists, to control the disillusioned citizens (by force if necessary), and to restore production. They accomplished this by establishing public works programs and a resumption of manufacture accompanied by a repudiation of reparation payments. Once the Nazis assumed power there was no chance of a return to a democratic government.
The history of Italy under Mussolini and Spain under Franco was similar. To control a disgruntled populace believing socialism to be their salvation, these despots were allowed by the rich (as well as the church) to suppress the people. All these fascist governments ruled by means of intimidation of the populace by the military or paramilitary under their immediate control. They were in turn financially backed and encouraged by the rich who were interested in maintaining social and economic control. Doesn't this sound just a bit like the "law and order" so prized today?
The U.S. is now approaching the end of the first phase of this process, the ruination of the American working classes by the giveaway of manufacturing to foreign workers. The dollar is just beginning what will be a drastic fall in value. The middle classes will be impoverished by this process causing a political reaction. This will lead to the need for the imprisonment of evermore citizens and an ever-increasing level of security forces both public and private. The people will demand a more socialistic government and the establishment elites in the U.S. will be frightened into the use of more severe methods of controlling the public, eventually using brute force and intimidation against their own citizens.
A familiar quote by Huey Long predicted that "When fascism comes to America it will be wrapped in the American flag". You can't get there from here with a socialist government. Fascism can only be established under a democratic form of government by a gradual erosion of rule of law and respect for the rights of the citizens. The Patriot Act and Department of Homeland Security may very well be necessary but will need to be carefully monitored in the future. In the event that these and similar legislative acts are not carefully controlled, there will be no turning back. The establishment will never give up the control of the populace willingly, and well-paid police forces will be available to support them. There will be full-blown fascism in the U.S. This will occur within the lifetimes of most of us and will be the inheritance of our children.
