With the start of the Trump administration in 2025, beginning tomorrow in the U.S., only one thing is certain: the contradictions of capitalism will continue to intensify. Trump, a prominent demagogue, is not only a result of his bombastic rhetoric but also a symptom of global economic conditions. He was elected as the candidate who resonated most with the American people’s aspirations. While the Democrats painted a rosy picture for American workers, many questioned its reality. Despite positive employment opportunities in the U.S., jobs are low-quality in terms of pay and benefits, while other economic factors such as rent, property prices, and inflation have skyrocketed in recent years.
According to the Bureau of Labor Statistics (BLS), around 5% of the American workforce currently holds two jobs, but this figure could be much higher when informal workers and freelancers not included in official statistics are considered [1]. Additionally, wages have stagnated despite increased productivity. According to the Economic Policy Institute (EPI), between 1979 and 2021, U.S. productivity grew by 64%, while workers’ wages, adjusted for inflation, only rose by 17% [2]. This disparity has gone entirely to corporate profits instead of being distributed across society. Ironically, these same companies have fattened their coffers while giving significant raises to their CEOs. According to the EPI, in 1965, the ratio between a CEO’s salary and the average worker’s was 27.7:1. By 2021, it had jumped to 399.7:1 [3]. The figures don’t even include the boost from bonuses, stock options, and other benefits. To clarify, since 1978, CEOs’ average pay has increased by 1,460%, while their counterparts—those who truly produce value in society—saw wage growth of less than 20% [4].
For Marxists, this is unsurprising.
Denying the existence of a global struggle over surplus value between classes is akin to believing in fairy tales. Claiming that “we are all in the same boat” is a dangerously naïve notion. It’s no wonder that class hatred in the U.S. is experiencing an unprecedented resurgence.
The case of the shooter who killed the CEO of one of the largest American healthcare companies is emblematic. Instead of being viewed as a villain, he was regarded as a martyr by the American public, leaving the media wondering why people supported an assassin. The explanation is clear: the media is owned by the same class of CEOs now targeted by public anger.
This dynamic is likely to intensify in the coming years. Numerous concerning economic statistics, such as the rising cost of living, housing prices, inflation, and medical expenses, are readily available online. Dialectically, these negative indicators will contribute to creating the opposite of the current situation in the near future.
But what can we expect in the coming years? I’ve seen various analyses in bourgeois media, as well as others grounded in Marxist theories, which are vastly superior in quality. In bourgeois media, pessimism abounds, and rightly so. Early signals from the U.S. indicate that significant changes are imminent. First, there seems to be an acknowledgment by the U.S. that the world has become multipolar, and America can no longer be an uncontested global authority.
Rubio, the new U.S. Secretary of State, suggested during his congressional hearing that the U.S. should now focus its resources on competing with China, a challenge he described as even greater than the Soviet Union in the past [5]. According to projections, by the end of this decade, China is expected to account for approximately 45% of global manufacturing, a level seen only after World War II when the U.S., unscathed by the devastation of war, achieved a similar position states The Wall Street Journal [6].
China’s 2024 trade surplus of $1 trillion dollars [7], historically unprecedented, underscores how state capitalism has transformed a nation whose initial advantage was a vast supply of cheap labor. Chinese subsidies in state-run sectors have created a highly skilled workforce and provided the necessary resources—energy, minerals, and human capital—to attract global manufacturers seeking higher profits [8]. In exchange, China formally recognized private ownership of production means in its Constitution on March 14, 2004, marking the formal beginning of capitalism in its society. The contradictions of global capitalism, however, will act here with renewed vigor.
China, a nuclear power since 1964, possesses numerous intercontinental ballistic missiles (ICBMs) capable of retaliating against any aggression [9]. It is also investing heavily in expanding its military capabilities, with its vast population enabling rapid growth in military personnel. Militarily, China is already a peer competitor to the U.S [10].
However, not all is smooth for China. Contradictions in its mode of production are showing clear signs of trouble. China has recently injected large public funds to regulate its markets, such as real estate and finance [11][12]. The same capitalism that revolutionized China’s economy is also destroying it. Both China and the U.S. now have the world’s most powerful bourgeoisie, albeit one (China) being more organized than the other (U.S.), shaping the next century.
Washington’s signals suggest acceptance of this reality. These include abandoning protection of Europe and multinational organizations that minimally maintained global dialogue.[13] Analysing America’s bourgeois class is complex task. While many strategists fear abandoning globalization due to potential global economic impacts, the American populace has pushed the bourgeoisie toward “America First.” This approach may lead to economic isolationism. Promises abound, including establishing non-competitive industries to reduce dependence on Chinese components and imposing tariffs to protect these industries. This could lead to the transformation of globalization into its opposite—the return of national markets.[14]
These markets, however, will not suffice to accommodate the excess production of today’s industries, resulting in unemployment and labor exploitation on an unprecedented scale. When this occurs, class consciousness will grow exponentially. The fragile social fabric will tear completely, and events like Trump’s election will seem small tectonic shifts in comparison to the ones in the future.
Over four years of Trump’s presidency, or 10, something monumental is bound to happen. The proletariat cannot endure exploitation any longer, needing only proper political direction to seize power. Economic conditions have long been ripe, but politics has been sidelined by welfare policies designed to stave off revolutions. With no more global markets to conquer, the only path to sustain profit growth is through worker exploitation. The world is a powder keg lit by bourgeois revolutions. As Marx said: “Socialism or Barbarism.” What will you choose?
To end great posts to read and have a deep dive into the subject:
https://marxist.com/us-imperialism-a-colossus-with-feet-of-clay.htm
https://marxist.com/trump-s-empire-of-chaos-and-the-delusion-of-fortress-america.htm
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