The shift to post-industrialism was associated with the rise of a powerful new set of capitalist elites and new corporate centers of production, finance, and communication. In the 21st century, Silicon Valley became the symbol of the new post-industrial high-tech world. It would become the showcase of the new high-tech companies, such as Microsoft, Amazon, and Apple, which were becoming the first trillion-dollar companies, led by tycoons such as Bill Gates, Jeff Bezos, Steve Jobs, Tim Cook, Mark Zuckerberg, Elon Musk, Sam Altman, and Peter Thiel, all fabulously wealthy members of the Big Tech power elite. Silicon Valley introduced itself as a modern miracle, bringing unprecedented new productivity and prosperity that would benefit both owners and workers, and contribute to the betterment of the general population with magical new products such as the personal computer, the iPhone, and the new internet-based world of online culture and communication on social media. This new world revolutionized the economic and social spheres, while also having major uses and implications for politics and the military. Because billions of people globally now have iPhones or personal computers, with access to the new online universe of the internet and social media, Silicon Valley seemed to open up not only a transformative new economy for entrepreneurs and knowledge workers but a transformed, newly connected world of online social communication and relationships.

This is not entirely an illusion. The online world does open up new social connections and political connections, with social media being a powerful new tool for the younger generation to build new friendships, communities, and politics. But Silicon Valley’s fantastic new array of electronic communications and online connections may also prove to be a gateway to weak social relations and ultimately the end of strong face-to-face social relationships, as well as democracy itself. We face a sociocidal transformation fueled by high tech, with Silicon Valley also proffering its own politics of authoritarianism. Sociocide is the process by which human connection is largely severed, and individuals are only concerned for themselves. A sociocidal society is one in which solidarity is nonexistent and meaningful human relationships are destroyed.

Several sociocidal forces emerge directly from the economic restructuring created by huge Big Tech firms, especially the “Magnificent Seven,” whose individual worth now reaches into the trillions:  Microsoft, Apple, NVIDIA, Amazon, Alphabet (Google), Meta (Facebook), and Tesla. One is the interest of these corporate high-tech elites, much like their corporate counterparts in other spheres, in eroding the face-to-face workplace and social ties that can challenge their power. In the workplace, that translates into the intensified attack on secure employment, unionism, and a collective physical workplace. The intent is to weaken the social relations of workers in the workplace – and more broadly, to subvert the solidarity and face-to-face connections of people throughout society that can challenge authoritarianism in both work and politics.

Focusing first on the workplace, the Magnificent Seven play a special role here by creating and developing the technology – including the personal computer, iPhone, internet apps, AI, robots, and social media — that allows corporate elites to create a precariat of dispersed and contingent workers, increasingly separated from each other, while also replacing millions of workers and transferring their jobs to robots and other AI inventions.

The most rapid replacement of workers by robots and AI is in high-skill jobs. Matt Sigelman, president of the Human Resources Institute, summarized his Institute’s widely circulated report on AI, saying, “There’s no question the workers who will be most impacted are those with college degrees, and those are the people who always thought they were safe.” He indicates that: “Companies in finance, including Goldman Sachs, JPMorgan Chase and Morgan Stanley, have some of the highest percentages of their payrolls likely to be disrupted by generative A.I. Not far behind are tech giants like Google, Microsoft and Meta.”

Tech workers, talented and highly trained, are developing the tools allowing their companies to eliminate many of their own jobs. Meanwhile, employers are also using robots to replace low-skill workers. The sociocidal tech impulse of Silicon Valley, as in other sectors, is embraced because of its profit-saving capacity. And the fastest way to increase profit is to reduce wages, usually by weakening relations among employees or busting unions.

The Magnificent Seven have used their overwhelming economic power to directly undermine unions, the most effective form of worker social relations and organization. In January 2024, Elon Musk, now legendary for his anti-union and broader right-wing views, filed a lawsuit in federal courts to declare unconstitutional the National Labor Relations Board, which protects and regulates workers’ right to organize. In August 2024, just before his re-election, Trump joked with Musk about firing workers, complimenting Musk during a two-hour conversation on X for firing Tesla workers who wanted to strike. “They go on strike,” Trump said to Musk, “and you say, ‘That’s OK, you’re all gone.’” Trump then added, “You’re the Greatest!” The UAW filed labor charges against both Trump and Musk for the unfair labor practices that the two had celebrated; Musk’s Tesla had clashed with union activists for years, and the NLRB in 2021 had found that the non-union Tesla violated labor laws when it fired a union organizer.

One of Musk’s Magnificent Seven compatriots, Jeff Bezos, CEO of Amazon, quickly joined in Trump and Musk’s union-busting party, filing a copycat suit to make the NLRB and unions unconstitutional. Here, we see the world’s two richest men, leaders of the High-Tech Robber Barons, exploiting economic size to reap the fruit of their technology’s economic power. They are seeking a revolutionary breakdown of workplace social relations, moving from the sociopathy of the first Gilded Age to the sociocide of today’s Gilded Age.

The Magnificent Seven’s power undercuts workplace social relations and fiercely attacks union solidarity in the name of free-spirited libertarianism running rampant in Silicon Valley. The broader corporate success in drastically weakening unions is key to sociocide in the entire US labor force and has been achieved not only by the anti-union fervor of corporations since the New Deal but also by the zeal of the Republican Party from Reagan through Trump to make the destruction of labor solidarity and unions a top political priority.

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The above is an excerpt from Charles Derber’s most recent book, Bonfire: American Sociocide, Broken Relations, and the Quest for Democracy.

This content originally appeared on Dissident Voice and was authored by Charles Derber.

China’s mixed and managed economy is designed to match its stage of development and is well managed. The U.S. non-managed economy has no design and does not match its advanced stage of economic development. China uses exports to grow its economy and limit debt. The U.S. runs severe deficits in its trade balance and needs a growing debt to finance the trade deficit and to increase the GDP. The rapidly growing debt portends economic decline, and there is no certified way to escape the predicament. U.S. hegemony and world leadership appears doomed. The sooner the U.S. leaders recognize the dangers and readjust the economy, the less will be the slide. More on this later. Facts and statistics supply the proof that the PRC has successfully met the challenges.

Overly contentious USA

Using sanctions from legislative directives, rather than pursuing cooperative efforts to combat China’s rise to the world’s number one industrial power, the U.S motivates China to become self-sufficient in technological applications, temporarily interrupts China’s advances, and eventually causes havoc to American companies

Citing security concerns, the U.S. Congress, in 2019, passed the National Defense Authorization Act and essentially banned use of telecommunication equipment from 5G network pioneer Huawei and smartphone manufacturer ZTE. In June 2020, the Federal Communications Commission (FCC) designated ZTE a national security threat. The security concerns proceeded from a possibility that the Chinese government could demand the habits of American citizens, similar to the information that Google and a host of advertising firms gather from internet searchers.

Huawei is of more major significance, but ZTE’s shrugging off the sanctions deserves mention. Its steady revenue growth until facing competition from other companies, relates its success.

This telecom company entered the smartphone market in 2010 and now has the 12th spot in the listing of the Largest Smartphone Manufacturers & Brands in the World. ZTE is also the 6th largest supplier in the Global 5G Infrastructure Market.

Huawei, global leader in development of 5G networks and China’s technology powerhouse, reeled from U.S. sanctions and stumbled as a boxer from an unaware punch. Predictions had Huawei barely surviving. Labelled as a company the U.S. could not do with, Huawei is now the company the world cannot do without. Refuting U.S. attempts to restrict its advances, Huawei expanded into new markets, into new industries, and developed unique alternatives to the denied technologies.

After years of “barely surviving,” Huawei is a leading network company on the globe, having constructed approximately 30% of worldwide 5G base stations, and is fourth in global smartphone manufacturing. After losing access to Google’s Android and Oracle’s software, Huawei developed its own operating system, Harmony OS, which has become the second most popular mobile operating system in China and, by 2025, was installed in over 900 million devices.

In 2022, the Commerce Department informed NVidia and AMD to restrict exports of AI-related chips to China, and informed chip equipment makers — Lam Research, Applied Materials and KLA — to restrict sending tools to the PRC for manufacturing advanced chips. China’s tech giant responded by challenging NVidia artificial intelligence dominance with its Ascend 910D AI processor chip, which “reflects China’s strategic push to develop indigenous semiconductor capabilities.” The U.S. did not respond to Huawei’s advance with its own technology advancements and again responded with threats. On May 15, 2025, the Trump administration warned that using Huawei’s AI chips might violate US export laws.

Ignoring U.S. threats, Huawei expanded use of its chips into the automotive industry and set a new standard for smart driving and self-driving technology.

Huawei’s ambitious undertaking includes the introduction of cutting-edge smart vehicles equipped with advanced autonomous driving technologies. The company is leveraging its prowess in artificial intelligence (AI) and big data to enhance vehicle performance and safety features. With a focus on seamless connectivity and user experience, Huawei is positioning itself as a significant player in the highly sought-after smart driving space, previously dominated by traditional automotive giants and tech firms like Tesla.

In August 2023, President Biden issued an Executive Order “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern.” The order prohibited U.S. investments in semiconductors and microelectronics, quantum information technologies, and artificial intelligence technologies in China. In November 2024, “The U.S. reportedly ordered TSMC to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence applications.”

As a result, Xiaomi, a leading smartphone manufacturer, which has expanded into electric SUV car production, developed its 3-nanometre XRing O1 system-on-a-chip (SoC). Following Apple, Qualcomm, and MediaTek, Xiaomi became the fourth tech company in the world to design a 3-nanometer mobile SoC for mass production. A Chinese company can now compete with American companies in selling the unique chips, and Qualcomm, which has been a long-standing supplier of mobile chips to Xiaomi, might have its sales disrupted.

Statistics tell the story

What have all these underhanded means to stifle the Chinese economy accomplished? Statistics in the following table tell the story. The Chinese economy surpassed the U.S. economy in 2022 and is leaving Uncle Sam far behind.

The U.S. has a higher GDP than China. China has a higher GDP/PPP. Unlike nominal GDP, which uses current exchange rates, GDP/PPP adjusts for differences in price levels between countries and provides a more realistic measure of the value of goods and services produced. Another consideration is the value given to components of the GDP. Capital, hard goods, and agriculture supply the most needed wants to a community, and their purchases play a more significant role in the economy. The service economy, a paramount feature of the U.S. economy, exaggerates its GDP. One dollar of purchase in goods production requires time for feedback to the manufacturer before other goods are replenished and additional purchases augment the GDP. Purchases in the service economy quickly pass the same money from one service provider to another and elevate the GDP. Industrial output, whether for domestic or foreign use, more appropriately demonstrates the robustness of an economy. China leads the United States in industrial output and demonstrated robustness by becoming the leading manufacturer and exporter of automobiles.

A comparison between two dynamos of each nation, U.S. Tesla and China BYD, automobile manufacturers and innovators that rose rapidly against established competitors, complete the story. BYD, which started at about the same time as Tesla, has surpassed Tesla in automobile sales.

BYD Revenue

Tesla Revenue

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More than that, BYD has accomplished what was never considered possible; with a fully charged battery and a full tank of gas, unbiased testing of its new hybrid auto technology showed a driving range of 1,305 miles before charge or fill up. Its fully electric models use advanced sodium ion batteries and, in 5 minutes, can be charged to obtain a 250 mile range. A vertically integrated company, which manufactures its parts and is a leading provider of electric car batteries, BYD sells its autos at the lowest prices in China.

Revisions by BYD include paring the price of its Seagull hatchback to 55,800 yuan ($7,780), a 20% reduction to a model that was already the carmaker’s cheapest and one that had garnered global attention for its sub-$10,000 price tag. The Seal dual-motor hybrid sedan (direct competitor to the $37,000 Tesla Model 3) saw the biggest price cut at 34%, or by 53,000 yuan to 102,800 yuan ($14,333). (ED: These may be temporary price cuts.)

Fatal Decline of the Imperial Power

The U.S. cannot compete with or contain China. Using China as a scapegoat for its global economic decline has proved counterproductive. Better for the U.S. to cooperate with the PRC, realistically examine its economy, become aware of its limitations, and take decisive action to prevent a fatal decline.

The hindrances to economic progress is fourfold:

(1) Debt drives the economy and the debt has become unmanageable.
(2) Manufacturers have established offshore facilities to open new markets and to compete more effectively.
(3) Off shore production and having the dollar as an international currency has produced a high trade deficit.
(4) U.S. markets in the Middle East, Africa, and Latin America have eroded.

Debt drives the U.S. economy and, the two charts indicate that without increasing the exorbitant debt, the economy will stagnate.

GDP/PPP

All Sectors Debt

Given a money supply to purchase goods and services, how can production and eventual sales of goods and services advance without increases in the money supply? One way is to increase the velocity of money, which occurred with on-time inventory, credit card purchasing, and computer speedup of financial transactions. These phenomena occurred during past decades and exploded the GDP. Another means is by having a positive trade balance; selling goods externally. If these means are not occurring, and they no longer are, increases in the money supply are required to increase production and sell additional goods.

U.S. goods trade deficit increased in 2024 to a record $1.2 trillion, and, although many economists excuse the trade deficit, saying that,

a trade deficit can only arise if foreigners invest more in the US than Americans invest abroad. In other words, a country can only have a trade deficit if it also has an equally sized investment surplus. The US is able to sustain a large trade deficit because so many foreigners are eager to invest here,

is more a rationalization than a reality. The trade deficit arose because American industry found it more profitable to produce overseas and made the dollar the international currency. As an international currency, the dollar is in demand and its exchange rate is high compared to other currencies. The strong dollar raises the prices of U.S. goods, makes its exports expensive and its imports cheap. Yes, the balance of payments must be equalized, and the dollars return as either purchase of government securities ─ one principal reason for rise in government debt ─ or purchase of U.S. assets. The former has become unwieldly, leading to high interest rates and the latter gives foreign interests increased power in the American system. Having a positive balance of trade reduces government debt and foreign influence.

Government debt is not the total problem. A system that exists by debt is the real problem. For a free wheeling and profit first economy that generates huge trade deficits to grow, the money supply must grow. Because money is created by either bank loans (debt) or Federal Reserve borrowings from the Treasury (debt), all money is debt. For the economy to continually grow, debt must continually grow. Soon, financing the debt and its increasing interest rates will be a difficult problem. Credit will freeze, loans will default, and the money supply will shrink. Boom will become bust. The United States has no choice but to have its economy more managed and align government and industry in common goals that correct the trend to a fatal decline.

Tariffs as a government money raiser and incentive to produce locally will be another tax on the American consumer and will not stimulate private investment in internal production to replace foreign imports. So, why not maintain low priced imports and tax the consumer for another goal ─ government investment in competitive industries. Cooperation between government and industry, rather than free-wheeling economics will enable more rational decisions and predictable operations.

The United States pioneered the global economy but globalization is no longer a perfect fit for the economically mature nation. Markets once lost are usually lost for a long time. Preserving present markets and finding niche markets for specialized goods, which the omnipresent U.S. economy has many, will stabilize exports.

History shows that private industry has never been the source of solutions to economic lapses. Changes in life style and a return to the cohesion and social legislation that characterized the Franklin Delano Roosevelt era might solve the economic, social, and political declines predicted for America’s future. The democratic socialization of America is begging to begin.

This content originally appeared on Dissident Voice and was authored by Dan Lieberman.

• More US sanctions against Chinese chip industry
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• Industrial renaissance in northeast China
• China approves GM soybeans and corn

This content originally appeared on Dissident Voice and was authored by Dongsheng News.