Oliver Stone has produced a
ten-part documentary on the history of the United States for the Showtime
network. This documentary is based
on the book of the same name that Stone co-authored with Peter Kuznick. Stone’s purpose in preparing this
project has been to give his audience a different picture of the history of
this country. While Stone gives us
a number of facts most people are unaware of, the core of his point of view promotes
a pro-capitalist perspective. In
order to do this, he must continue to keep essential historical facts hidden
from the public.
What is capitalism?
In order to give some perspective
to what a rational history of the United States would look like, we might start
with an explanation of what the capitalist system is. Capitalism came about because there were problems that
emanated from societies ruled by royal families of kings and queens. A new capitalist class emerged that was
fundamentally interested in manufacturing commodities for profit.
This new class represented a
progressive change in history. For
the first time there were mass production industries that had the potential of
ending poverty in the world. The
problem of capitalism is that while the potential exists to eliminate poverty,
because profits are the top priority, poverty is an absolute necessity of the
capitalist system.
Another problem of capitalism is
the instability of this system. For
various reasons, the percentage of profits on investments tends to fall. We can see this clearly when we look at
the history of interest rates on savings accounts. In the 1960’s and 1970’s the interest on savings accounts
was about four to five percent.
Today, that same rate of interest is less than one percent.
This means that capitalists need
to invest more and more in order to have a smaller and smaller rate of return
on investments. This state of
affairs provokes capitalists to invest hundreds of billions of dollars every
year in advertising. This huge
investment allows capitalists to maximize sales, selling commodities that many
of us do not use.
The falling rate of profit also
demands that capitalists be obsessed with cutting costs. This is why many capitalists have moved
their operations to other countries in order to take advantage of lower labor
costs. This is also why capitalists
have been, lowering the standard of living in the United States by giving wage
increases that do not keep up with inflation. The result has been that wages for working people have, in
effect, been cut at a rate of about 30% over the past thirty years.
All of this means that
depressions do not happen because of mistakes by capitalists or
politicians. No, when people who
have power are obsessed with maximizing sales and minimizing costs, then,
economic crisis’s are inevitable.
Therefore, while the potential
has existed to eliminate poverty for quite a long time, the capitalist world
moves closer and closer to another depression. In their book, Untold
History, Stone and Kuznick showed how during the last depression banks
closed their doors and capitalists cut industrial production by 50%. This was at a time when the official
unemployment rate was twenty-five percent.
When we understand these facts,
there is only one conclusion. The
only way to counteract the crisis caused by capitalism is to put in place a
different kind of political economic system where human needs and not profits
are the priority. When capitalist
politicians advance their strategies, they can only lead to the same kind of
human made catastrophe that emerged in 1929.
Would Henry Wallace have been a better President?
One of the themes of the
Untold History is to argue that the
United States would have had a better government if Henry Wallace became
President. Wallace was the Vice-President
in the administration of President Franklin D. Roosevelt up until a few months
before Roosevelt’s death.
Oliver Stone and Peter Kuznick
argue that if Wallace became president, the government would have been more
tolerant of the Soviet Union. They
also argue that had Wallace become President, the government would have been
more supportive of labor and more critical of corporate power.
Certainly Wallace made numerous
statements that would make someone think that a Wallace presidency would have
been different. However, it is
always best to judge people, not only by what they say, but by what they do.
Henry Wallace was the
Vice-President under the administration of Franklin D. Roosevelt. The record of the FDR administration is
there for everyone to see.
Roosevelt probably used federal troops in attempting to break more
strikes than any other President in history. In spite of this vicious opposition, many labor unions won
representation during the Roosevelt administration. Roosevelt signed the Wagner Act that gave workers the right
to the union representation they had already won through labor battles against
corporations.
During the depression, as we
might imagine, working people had an extremely harsh view of corporations. Everyone knew the simple fact that
corporations caused the depression that resulted in immense hardship. Roosevelt manipulated this sentiment by
making statements critical of corporations, while he viciously advanced
policies that defended those who controlled corporate power. Stone and Kuznick showed how Roosevelt
refused to nationalize the banks even after millions of working people lost
their savings. This action
protected the wealth of capitalists at the expense of working people.
Roosevelt refused to support the
Costigan-Wagner Act that would have outlawed lynching in the United
States. Anti-lynching legislation
had been advanced for over a decade.
Thousands of Black people had been lynched and the federal government
rarely acted to prosecute the murderers.
However, Roosevelt was a democrat and the Democratic Party, as well as
the Ku Klux Klan, ran the governments in the Jim Crow states. Roosevelt did not want to antagonize
his fellow democrats and refused to sign the Costigan-Wagner Act.
Roosevelt also adapted to this
viscous racism by sending about 120,000 citizens of the United States, who
happened to be Japanese, to concentration camps.
Stone and Kuznick showed how
Henry Wallace was from Iowa and became the Secretary of Agriculture before he
was named Vice-President. Wallace
signed legislation that ordered farmers to destroy crops and young hogs in
order to increase the price of food and clothing. Wallace was clearly troubled by signing this order. However, he signed the order and made
it more difficult for people who were suffering during the depression to
purchase the necessities of life.
Would Wallace have been friendlier to the Soviet Union?
Stone argued that Wallace would
have been friendlier to the Soviet Union than President Harry S. Truman. Challenging this assertion is easy when
we look at the facts.
Historically superpowers have
always dominated the capitalist system.
Before the first and second world wars, Britain was the world’s
superpower. The world wars
signaled the fact that the British empire was collapsing. Germany, the United States, and Japan
were the world powers that were attempting to replace Britain as the world’s
superpower.
Fascist Germany had taken
military control of much of Europe.
When the Nazis invaded the Soviet Union, most analysts didn’t think this
invasion could have been stopped.
Germany had dominated Czarist Russia in the first-world war.
Joseph Stalin, the head of the
Soviet government, had betrayed the revolution, murdered all of its leaders as
well as many of the top ranks of the officer corps. In spite of the fact that the Germans had prepared for the
invasion, Stalin was taken completely by surprise when the German troops
invaded. Yet, in spite of Stalin’s
horrendous lack of intelligent leadership, the Soviet Union defeated the German
armed forces at a cost of over 20 million lives.
For the United States government,
this appeared to be like a gift made in heaven. The nation that was working to dominate the world had been
defeated and, at this point, the U.S. didn’t need to make much of an
effort. Only after Germany had
been defeated in Stalingrad did the Allied forces invade at Normandy. While the U.S. never engaged more than
ten German divisions in the war, the Soviet Union engaged 200 German divisions.
This was the reality that caused
the U.S. government to temporarily change its hostile relations with the Soviet
Union and send some aid to their Russian allies. However, the U.S. is a nation dominated by capitalist
relations. Before and after the
second-world war, the United States had hostile relations with the Soviet Union.
Clearly, no one knows what the
world might look like had Henry Wallace become President of the United
States. However, Wallace proved
himself to be a consistent capitalist politician and there is no reason to believe
that had he become President, that the history of the world would have been
significantly different.
(to be continued)