The New New Economy

September, 1, 1934: Millions of cotton spindles stopped spinning. Across the Southern Piedmont, mill whistles blew but workers didn't come to work. The most exploited industrial workforce in the United States – the "lint heads" of the Carolinas, Tennessee, Georgia, and Alabama – was on strike.

As mill owners appealed frantically for injunctions, tear gas, and the National Guard, a vast, peaceful army of textile workers demolished the image of Southern labor as culturally servile and unorganizable. With voices honed to spare beauty in the choirs of mountain Baptist churches, they sang, instead, powerful hymns of solidarity.

And they were robustly answered (often in Portuguese, Italian, or French) by the mill workers of New England who joined what became the first industry-wide general strike of the 1930s. It was also the most violently repressed. Before FDR (more concerned to appease the "lords of the loom" than to liberate their slaves) cajoled the national textile union to call off the strike, thousands had been beaten, tear-gassed, and arrested. Thirteen – mostly in the South – had been shot dead.

Now, seventy years later, with only a handful of moist-eyed veterans left alive to remember the heroism and heartbreak of the Great Textile Strike, cotton spindles in Dixie have once again stopped spinning. But this time they've stopped forever. The American textile and clothing industries are dying. Since the inauguration of George W. Bush in January 2001, 350,000 textile jobs – almost a third of the total – have been lost. Another 400,000 jobs are expected to disappear by the end of the decade.

Textile manufacture in the Piedmont, today as in 1934, is largely a monoculture, and as the mills close, towns die with them. Already too many Main Streets in the upland South are populated only by thrift stores, drug counseling services, and military recruiters. The parallel decline of the clothing industry is likewise eroding the survival economy of recent Latino and Asian immigrants in the tenement districts of downtown Los Angeles, New York, and Miami. Soon even sweatshops will be remembered with nostalgia.

Thus, another large segment of the American industrial working class is being fast-forwarded to that brave new world that Kurt Vonnegut predicted with such eerie prescience in his 1952 novel, Player Piano: a society of discarded laborers whose only option is enlistment in the imperial legions fighting wars for oil and other resources on distant frontiers. (Michael Moore's Fahrenheit 9/11 – particularly scenes of Marine recruiters trawling for Flint, Michigan's unemployed youth – is, of course, Player Piano in real time.)

This almost invisible tragedy – who talks about plant closures on Fox News or CNBC? – is part of a larger global jobs catastrophe that follows in the wake of trade liberalization. The final quota barriers protecting American textile and garment jobs will be dismantled next January. Since Beijing's accession to the World Trade Organization (WTO) in 2001, its soft exports to the United States have doubled, and the British Financial Times predicts that China will grab the greater share of the global market in a breathtakingly rapid restructuring that will eliminate millions of jobs worldwide from Danville to Dhaka.

China's chief comparative advantage, as the AFL-CIO argued last March in a petition asking the U.S. trade representative to promote the rights of Chinese factory labor, emerges from the government's "unremitting repression of workers' rights" and the ruthless exploitation of an estimated 100 million rural migrants. Indeed, a recent article in Monthly Review claims that economic inequality in China, once amongst the lowest in the world, has now risen to "near Brazilian and South African levels."