U.S. President Biden's Infrastructure Plan

Infrastructure Plan to Pay the Rich

The Biden Administration infrastructure plan is presently before the U.S. Congress. The plan seeks to put $2.3 trillion in funds from the public treasury into constructing new infrastructure and rebuilding already existing roads, bridges, rails, electric grids, water supplies, ports and airports. Over half of the proposed funds are slated for direct handouts to private investors in what is called green projects such as $174 billion in pay-the-rich schemes for the auto oligopolies to produce electric vehicles or as some commentators derisively remark "to make Elon Musk richer."

A modern economy requires social infrastructure serving all sectors regardless of the relations of production or system of ownership and control. In a country the size of the United States, social infrastructure is massive in scope demanding equally massive investments. Infrastructure is socialized means of production that all enterprises and the people require in one way or another. The necessity is not in dispute. The issue facing the people is not the necessity of social infrastructure but who controls it and in whose social class interest it is built, maintained and realized (paid for).

Should financing, building, maintaining and realization of social infrastructure serve the competing private interests of the oligarchy or the common good of the economy as a whole and the people and society and its humanization? Working people can resolve this problem in their favour with mass political mobilization to stake their claims on what is theirs by right and open a path forward to democratic renewal and a new pro-social direction for the economy.

Infrastructure and Imperialist Globalization

Means of transportation are an obvious necessity. The need exists to transport resources and commodities to factories and other workplaces, including the human factor and its capacity to work. The further transportation of commodities to retail outlets and buyers, and customers to markets are all necessary functions of a modern economy. Globalization has added distance to all these activities.

International infrastructure under imperialism includes militarization and the competition for investments, resources, markets and workers to exploit. Resistance of the people to foreign control and exploitation is unrelenting with challenges to imperialism coming from all quarters. Development is uneven and competitors inevitably arise to challenge the existing powers with war a constant danger. For example, the silk road of the old world has become the Belt and Road Initiative of the modern one to build international infrastructure connecting China to 71 countries. In response, the U.S. imperialists under President Obama announced a U.S. military "pivot to Asia" and preparations for war with China, which is now intensifying under President Biden with Prime Minister Trudeau and others in lockstep. International and domestic infrastructure is a concern of the ruling U.S. oligarchy closely connected with its war economy driven by their individual private interests and their collective desire for global hegemony and to defeat all rivals.

Ownership, Control and Realization of Infrastructure

The ownership and control of infrastructure, its financing, price of production and realization, the distribution of profits and which companies are to be involved in its construction, maintenance and management both at home and abroad are matters that the oligarchs and their political representatives fight over according to their private interests and needs. The common good and how infrastructure should serve the entire economy and its parts in cooperation are not considerations of the imperialist oligarchs. Their quest for maximum private profit dominates their thinking and actions.

Once decided by those in control, infrastructure needs financing. The $2.3 trillion will come from both general taxation and deficit financing. This suits the oligarchs fine as lending governments money is a safe and reliable way not only to make some interest but also to park money that has few other possibilities at the time. General taxation has become a matter of the working class paying from its reproduced-value as most oligarchs and their enterprises pay relatively little in taxes.

The construction and maintenance of infrastructure is mostly a private affair of huge companies that are customarily owned and controlled by global investment cartels. The profits from infrastructure construction are enormous as can be seen from the scramble and infighting among the rich for political influence to be in a position to decide and award contracts.

Realization of the transferred-value of infrastructure is shrouded in mystery. The enterprises that consume infrastructure as means of production and distribution want to do so at the lowest price, if at all. In many cases they do not pay anything such as with mass commuter transit, or only partially at a fraction of the real value with roads and bridges, and with agreements on lower "industrial rates" for example with the Post Office or state owned hydro-electric enterprises.

The oligarchs regard infrastructure that reproduces the human factor and keeps workers available, healthy and educated to standards they need as not their responsibility to pay for (realize) through their enterprises other than by minimal user fees, corporate taxation, charity and certain collective agreements with their own workers for pensions and other benefits. 

The refusal to recognize social infrastructure as necessary means of production for which all enterprises active in the economy are individually and collectively responsible has the effect of dumping the cost of realization onto the working class. The refusal of those who control the economy and its parts to recognize and assume their social responsibilities means problems go unresolved, social conditions deteriorate, and the people are deprived of their right to education, health care, employment and even their lives.

Nation-Building

Under the current regime of the oligarchs, infrastructure spending is directed at strengthening their private interests and control in contradiction with the necessity for nation-building to serve both the people and the economy. Modern nation-building is a project the working class must assume under its control and aim to serve the people and their society and all humanity.

Very little of the public spending under the control of the oligarchy results in realized actual and potential income from state enterprises that can then be reinvested in other infrastructure or social programs This lack results in a structural problem for imperialism as to where public funds can be found to pay the rich and to finance the massive domestic and international police powers, state bureaucracy and infrastructure. The oligarchs shift the burden of finding public funds for the state treasury onto the working class through individual taxation and user fees. This results in constant downward pressure on the working class and its standard of living.

Reduced state spending on social programs and the necessity for the oligarchs to always have a certain level of unemployment or "surplus workers" available at any time result in deteriorating social conditions and a continuous stream of workers falling out of the productive workforce into extreme poverty, and an equally large number of people engaged in social welfare and charity attempting to help the poor or advocate for their needs. Why this industrialization of poverty and charity exists is never questioned in official circles even though the productivity of the modern economy quite obviously allows solutions to be organized to lift up all people culturally and socially, affirm their rights and allow them to participate in work and life according to their ability.

When building and maintaining social infrastructure, the private interests of the oligarchy are first and foremost served. This is yet another reason the oligarchs fight so ferociously amongst themselves to ensure their private interests are represented in government and that their political operatives within the cartel parties win positions to award contracts.

The exposure of the political economy regarding infrastructure and the refusal of the oligarchy to meet its responsibilities is a front of the struggle to affirm the rights of all and claim what belongs to the working class by right as the producer of all value. The exposure and class struggle to stop paying the rich and increase spending on social programs point to the necessity for a new direction for the economy where the actual producers themselves take control of economic and political affairs freed from the burden of the narrow competing private interests of the oligarchs dictating what is to be done in contradiction with working people and the socialized productive forces.


This article was published in

Volume 51 Number 19 - August 1, 2021

Article Link:
https://cpcml.ca/Tmlm2021/Articles/MS51191.HTM


    

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