Often, when we discuss the labour aristocracy, the focus turns quickly to the US, the core of the imperial core. A problem then arises because there is a lot of poverty in the US, which can be taken as representative of the whole imperial core, and that poverty is used to discredit (aspects of) the labour aristocracy thesis.

We can look at Germany for another example, to see how workers’ interests become aligned with the capitalists’, and create an incentive for them to work together at the expense of the periphery. A relevant quote from the linked article:

What is particularly interesting about the participation of labour interests in capital is the way in which these interests have been united in the period of the so-called social-democratic consensus.3 Alexander Hicks … argued … social democracy in the second half of the 20th century, coupled to the interests of large-scale capital, led to the creation and consolidation of a form of government known as corporatism ….4 The leading corporatist or fascist idea was that class and all other disagreements in capitalism would be resolved by allowing participation of groups in society seen as integral to decide on the direction in which society would develop – that is, class collaboration. Workers, capitalists, bankers, craftsmen and others were to work together to make these decisions. … [I]t is essential that social unity is always maintained and that compromises are made. Corporatism as the leading ideology in the West is accepted by large capital, the social-democratic parties, and the major unions.

The most significant example for this rise of corporatism is again Germany. … [S]ince the 1980s, an unprecedented wave of economic integration of labour and capital in Germany began, with the same program taking place in many of the core countries. By the end of the 1990s, pension funds became the most important investors on stock exchanges in the United States, and after the unification of Germany, the same process was seen.5 Laws have been passed that allow pension funds to invest significant capital (which has been collected for decades from the payment of pensions to workers) on the stock exchange in the shares of large corporations.6 The argument was that a quick inflow of money into corporations would enable large profits and stock market growth, and that funds would increase their capital through dividends or payments that all shareholders receive when a company records profits.

After … the unification of Germany, the infusion of capital from pension funds … created a sufficient amount of money in German corporations to carry out the privatization of the industrial giants from the former DDR and not destroy them – as they were destroyed in Serbia and many other post-Soviet nations – as it was politically important to undergo a smooth transition to capitalism in Germany in order to forestall social unrest. Soon afterwards, the same capital was used in the privatization of industrial companies throughout Eastern Europe after the fall of the Soviet Union. German firms were most likely to pick up all the strategically important companies in a short period of time. For example, Wolkswagen bought the Czech Škoda and integrated it into its automobile conglomerate, where it still operates successfully today.

The best example of this economic trend, however, is the German telecommunications giant Deutsche Telekom, which is partly owned by the state (holding 32% of shares), and a large part of the remaining shares then held by various pension funds.7 This company, whose ownership structure represents the embodiment of corporatism, is owned by the German state, German big capital and German pension funds. In addition, it is part of the world’s telecommunications cartel and has a significant share in the ownership of British Telecom and major US telecommunications companies., Operations of Deutsche Telekom are of great importance to Serbia and other countries created by the breakup of the communist republics. Deutsche Telekom has purchased near the entirety or a significant part of the telecommunications giants in Slovakia, Hungary, Albania, Montenegro, Croatia, Romania and Greece. The Greek OTE (Greek Telecommunications Organization), which is largely owned by Deutsche Telekom, held 20% of Serbia Telekom shares by 2012, and then sold the company back to the Serbian state for 380 million euros in preparation for the complete privatization of Serbia Telekom. It was said at the time that Serbia Telekom could reach the price of approximately one billion euros, and Bloomberg wrote that Deutsche Telekom was the main contender for the purchase.8 A simple calculation shows that the state of Serbia bought 20% of its shares of Serbia Telekom for 38% of the sum for which it planned to sell the company. For now, this malversation has not been realized, but we are aware that the sale of Serbia Telekom is one of the most important obligations of the Government of Serbia towards European, primarily German, capital.

We see that Deutsche Telekom owns the most important telecommunication companies across a large section of Europe, as does Wolkswagen, which bought Audi, Seat, Porsche, Bentley, Bugatti and other smaller companies in addition to Škoda. It is clear that this is a matter of forming unprecedented monopolies in the region’s key and most profitable industries. This entire project was made possible by the infusion of additional capital by pension funds. In Germany, pension funds now account for over 200 billion euros in stock market investments.9 By comparison, this is four times more than the total economic production of Serbia, which amounts to less than 50 billion euros. Even just one pension fund, BVK, which has a portfolio of 55 billion in shares of various corporations, is more powerful than the entire Serbian economy.10

German pension funds are now in the hands of the most qualified investors, and capital is so diversely distributed in shares of various companies that the losses of individual companies cannot significantly damage it. In other words, as the stock market grows, the capital accumulation of these funds grows, and thus the interests of workers whose pensions are found in these funds are structurally linked to the interests of capital. The higher the accumulation of capital, the higher wages can these workers expect. When all this is added to savings, which is an inevitable item of almost every traditionally generous German household, and which was made possible by the extremely high salaries of past decades, the question of the real interest of German workers for any changes other than those favouring capital is starkly raised.

When the German state, German capital and the German banks sit parasitically on the back of the European (and world) periphery, and German workers reap tremendous benefit from this parasitism, there is no concrete possibility of revolution in that country – such a possibility does not exist! Germany is only taken here as an example of a dominant European economy, and its role here is largely played out by the United States at the global level. In structural terms, it is clear that one cannot speak of an international solidarity of the working class emerging evenly from all regions of the world. The class struggle has completely shifted to the level of global conflict between the core and the periphery.

The linked article is worth reading in full if you have the time. It’s short and to the point.