Article 13:
Trump, President of the United States, and Globalization of Capital
Abstract
During Donald Trump’s presidency, the United States adopted a different approach to economic policies and its role in the global economy. Trump focused on protectionist policies and the slogan "America First" in an effort to bolster domestic production and the country’s economic interests. However, this approach stands in contrast to the realities of capital globalization and the cycles of capital accumulation. This article analyzes Trump’s policies using the theoretical framework of the three forms of capital (commodity, productive, and financial) and illustrates how these policies not only diverged from global capitalist trends but also posed challenges to both the global and domestic economy. The article concludes by emphasizing the importance of understanding the complexities of global capitalism for future policymakers.
Introduction
In recent decades, the globalization of capital has become an inevitable phenomenon, where capital, production, and labor transcend geographical boundaries, transforming the global economy into a complex and interconnected network. The United States, as the world’s largest economy, has played a pivotal role in shaping this process. However, Donald Trump’s election as President of the United States in 2016 marked a turning point in the country’s economic policies. Trump’s emphasis on economic nationalism and support for domestic industries led to the adoption of policies that appeared to conflict with the principles of capital globalization.
The purpose of this article is to examine Trump’s economic policies and their relationship with the cycles of capital accumulation. The article demonstrates that Trump, despite successfully garnering support from segments of American society, had a limited understanding of the complexities of capital globalization, which constrained his economic policies.
Theoretical Framework
Contemporary capitalism operates through three main forms of capital:
1. Capital in Commodity Form: Capital is produced and exchanged in markets as goods or services. This stage of capitalism emphasizes the production of physical goods and services for market sale.
2. Capital in Productive Form: Capital is invested as the resources required for producing goods and services (e.g., factories, machinery, and labor).
3. Capital in Financial Form: Capital flows as money and financial instruments, exploiting profit opportunities in financial markets.
These three forms of capital operate in a mutually reinforcing cycle. The globalization of capital has expanded these cycles to a transnational scale, integrating production, distribution, and financial chains across the world.
Trump’s Economic Policies
During his presidency, Trump pursued economic policies with an emphasis on protecting domestic interests and reducing reliance on the global economy. These policies can be analyzed in three main areas:
1. Capital in Commodity Form
Trump imposed heavy tariffs on imported goods, particularly from China, in an effort to strengthen domestic production. These policies were part of a broader trade war aimed at bringing back lost jobs to America. However, these measures have resulted in increased costs for consumers and disruptions in global supply chains.
2. Capital in Productive Form
Trump’s slogan of "Make America Great Again" was accompanied by a focus on boosting domestic production. He sought to encourage manufacturers to invest within the United States by reducing taxes and easing regulations for heavy industries. However, this approach overlooked the realities of globalized production and the low competitiveness of some American industries compared to foreign producers, resulting in significant limitations.
3. Capital in Financial Form
In his financial policies, Trump prioritized tax cuts for corporations and deregulation of banking practices. These policies led to a short-term boom in financial markets but failed to address the critical role of financial capital in globalization and its interactions with other forms of capital.
Contradictions Between Trump’s Economic Policies and Capital Globalization
Trump’s policies highlight the contradiction between economic nationalism and the realities of capital globalization. His focus on domestic production and reducing reliance on global supply chains conflicted with the needs of American multinational corporations to leverage cheap labor and expansive foreign markets. Additionally, insufficient attention to financial capital and its role in the global economy demonstrated a limited understanding of contemporary global capitalism.
Conclusion
As President of the United States, Trump sought to strengthen America’s domestic economic interests through protectionist policies and nationalist rhetoric. However, these policies are likely to falter against the complex realities of capital globalization. Modern capitalism increasingly relies on the global integration of commodity, productive, and financial forms of capital, and any economic policy that disregards these interactions will face significant challenges in the long term.
For future policymakers, a deeper understanding of global capitalist trends and international cooperation in managing these dynamics is essential. Only with such an approach can the global economy be steered in a way that ensures both national and global interests are met.
This article has been prepared by Mohammad Rahim Jamshidi.
mriamshidi@gmail.com
01/25/2025
Shiraz – Iran
