Matters of Concern to Canadians
U.S. Steel’s Acquisition of Stelco —
A Question of Control
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The monopolies that dominate the North American economy do not recognize the sovereignty of Canada or Mexico. The sovereignty of the U.S. is assured from its sheer military power as the dominant imperialist state in the world. The absence of sovereign recognition is aided in practical terms by the free trade agreements and subsequent lack of any political will of the Canadian and Mexican governments to defend sovereign control over their economies.
The monopolies view North America as an integrated whole. They choose, control and put in power in governments their political representatives. Disagreements emerge similar to those that arise in any arrangement within a family, business or organization. The dominant force within the arrangement soon asserts its authority and the disagreement is resolved.
Mergers and acquisitions amongst the monopolies occur regularly as they search for ways to defend and enlarge their empires and consolidate their control. Companies of similar size usually merge while smaller companies are usually acquired by larger ones.
The mass media and experts generally accept a merger or acquisition as positive, for only good can come from an increase in size and power in the hyper competitive global economy of the U.S.-led imperialist system of states. Besides, the synergies involved are mostly positive, we are told, as working together usually results in the sum being greater than the parts. Larger and ever larger concentrations of companies into global monopolies has been the trajectory of capitalism since its beginning and how could that not be considered good unless one has a different outlook and envisions another direction altogether.
The concentration of economic control is reflected in politics with a concentration in political control. First, local control is lost. Then, regional, national and even legislative control is lost to executive power and soon sovereign control over decision-making is lost to the global monopolies. The free trade agreements put a nail in the coffin of sovereign control, which had already occurred on a broad scale. Control over most decisions is left to the monopolies, which decide what is best for their particular empire while more or less coordinating their actions with other empires in a spirit of both collusion and contention. Is that not what they are doing in Davos at the World Economic Forum of the ruling oligarchy where political leaders, such as Trudeau, come to kneel at the feet of the billionaire autocrats?
U.S. Steel acquired Stelco in 2007. The acquisition was not a merger, as the size difference was too great, and besides, U.S. Steel is situated in the heart of the imperialist beast and Stelco on the periphery. When an acquisition occurs, duplications are identified that can be eliminated. They call this synergy. What was before a competing company is now integrated as part of the empire. For the greater good the unnecessary bits can be chopped off and discarded making the whole stronger.
Control now rests with the dominant power, in this case U.S. Steel, so the centre of the empire makes the decisions, and the power, control and competition of the acquired company is no longer an issue. Control and decision-making now rests in the centre of power of the enlarged empire, and if discarding duplication requires collateral damage of means of production, workers and retirees so be it, as that all serves the greater good of the one, the strengthening of the empire. All for one is the motto of the empire. The bits and pieces must serve the whole, the duty of the concentrated whole is to itself, the one, not to the all. The all must serve the one, while the duty of the one is to itself, to strengthen the one at all costs, for the one has become the greater good.
The political regime reflects the all for one with slogans such as “too big to fail,” and practically by diverting public funds to sustain the one, the whole, the empires, all for the greater good of the one.
Political forms are developed to serve the one and ensure that those who pine and yearn for lost control and sovereignty are thrown a bone such as the Investment Canada Act, which serves to paper over the loss of control and sovereignty in the free trade agreements. The swallowing of the all into the one is declared a “net benefit,” just as the synergies of mergers and acquisitions provide a net benefit for all in becoming the one for the greater good.
The business laws that sorted out differences and problems amongst companies and individuals over private property must also be changed, and if not changed at least superseded so that the old covenant of all for one and one for all to serve the greater good is changed to the empire’s covenant of all for one. The Companies’ Creditors Arrangement Act (CCAA) gradually asserts its authority as the power of the one over the all, of the all for one, the monopoly right, the greater good of the all within the one, the empire.
What appears to be absurd and irrational according to the old covenant is not so within the CCAA. The one, the empire argues that its equity is really a debt to itself. This is not irrational and absurd within the paradigm of monopoly right and control and all for one. The CCAA serves the greater good of the one, the empire. The CCAA is the all for one in commercial law, the new covenant of monopoly right and control overruling the old covenant of one for all and all for one.
From economic control flows political and judicial control. The loss of control and sovereignty at the local, regional and national level is palpable and real. How to change the situation is a question of boldly facing the issue of control and not fudging the issue. Democratic renewal and people’s empowerment are the path to control. Organized resistance to monopoly right, to the control of the one, the empire is the method. The way forward is organized conscious resistance to the economic, political and judicial control of the one, of the empire and the fraud of the empire’s greater good within its all for one.
The concrete conditions of monopoly right and control show in its wrecking, collateral damage and endless predatory wars that the greater good is not found in the one, but in the all, the one for all. The old and new covenants of the ruling oligarchy no longer serve society and its socialized economy. A new direction for the economy and country can be found in the battle for the greater good of the all, in the principled stand of the new, the one for all.
The one, the empire must be opposed and control wrested from its hands and its political representatives and a new public authority established consistent with the times. The all must seize control through democratic renewal and empowerment. One for all!
The Stelco mills are needed for the greater good, the all, the economy and social fabric of the community and the public interest. U.S. Steel’s wrecking to serve its empire must be stopped! Stand as one in defence of the rights of all! Keep Stelco producing! Keep Hamilton producing! Keep Canada producing! All out to make the January 30 Day of Action a success!
Rtuc's Blog 