If "late stage capitalism" is real, how do you explain the precipitous drop in inequality in the USA in the 20th century? If we reduced inequality before why can't we do it again?
Because the rate of profit was efficient at that time and the working class was organized so it was able to demand social services and such from the ruling class at the time, this is what Keynesian economic theory is, give basic services to prevent a revolution. This system collapsed because the capitalists rate of profit fell over the decades, and of course being capitalists, wanted to increase profits so taxes were cut, and so were services
>>2869513Because nukes put a limit on the scale of wars that happen and so you can't rob the world at the same scale you did during and after WWII. You try very hard to cause wars and absolutely destroy countries but nothing quite does it like Hitler. The current Iran war is in large part an attempt to destroy China through choking out its oil supply, and the rest of the world too, so that America alone is again the only stable country and the post-war boom repeats itself.
Really if you think about it the failing rate of profit for the capitalists is what late stage capitalism is, capitalists making less money and desperately trying to retain wealth at the expense of the working class and the entire planet.
>look at chart
>economic inequality only increase 4 percent
huh
Here's the ratio of Corporate profits divided by GDP from 1947 to 2026. You can notice some things.
1) Declines in RoP creates recessions, after which the RoP recovers.
2) The average RoP has been increasing.
3) We have passed the longest period without a real recession.
My theory is that globalization has been a gigantic boon for capitalism, much more than communists realize. World trade as a % of GDP has increased from 25% in 1970s to 60% today. This highly globalized world based on expansion of capital to underdeveloped countries has massively boosted rate of profits.
This is why the capitalist class has been so reluctant to on-shore manufacturing and services. They know they're getting de-industrialized, and that China is eating their lunch, and that their military strength is suffering. But the profits are STILL so goddamn high that they want to ride this gravy train a while longer.
>>2869745As for how this relates to inequality, there's been a lot of government spending for social services (one of the reasons why the US debt burden as % of GDP has increased so much). That spending keeps inequality down. That kind of spending also does not depend on present RoP but on future RoP. The US also exports a shitton services which doesn't get talked about. Their tech monopoly and service industry in general helps keep the RoP up.
That's why the real action is gonna happen once China moves up the value ladder and starts exporting services and advanced tech as well. That's when US RoP is gonna get hit HARD and they know it, which is why preparations for WW3 are underway.