Tag: Indians

  • Capitalism

    Capitalism

    This article is part of a series on classical Marxism.

    There is a claim that capitalism is defined by free trade and markets but this is an obscurity. Capitalism utilizes both markets and economic planning where beneficial, just like every other economic system has done—including hunter-gatherers, ancient Rome and feudal Japan. The definition of capitalism is actually very simple and specific: private ownership of production and wage labour. These characteristics may seem unimpressive from today’s vantage point but their fruition conceals a long and shady history.

    In Capitalist Realism, Mark Fisher points out the prevailing sentiment of 21st century disempowerment: “It is easier to imagine the end of the world than the end of capitalism.”1 As recent movies and television series indicate, there is a fascination with the apocalypse and barren moral landscapes that burn on our consciousness. Now that capitalism is concretized as the social reality in most of the world, the mind’s eye has tunnel vision regarding it. However, this anguish is not a distinct capitalist phenomena. Eschatology is an ancient subject. Generations of medieval peasants saw little change, despite the shifting boundaries of feudal fiefdoms and principalities. The Roman Empire and Ancient Egypt were supposed to last forever. And the Paleolithic era nearly did. For so many who lived and died in the past, it must have also been easier to imagine the end of the world than the end of their own way of life.

    That would not be true of every single generation—after all, there are active periods of revolution where artifacts and norms are torn down within the lifetime of individuals. And if anything distinguishes capitalism from what has preceded it, it must be the fixed quality of hectic upheavals. Karl Marx observed: “Constant revolutionizing of production, uninterrupted disturbance of all soil conditions, everlasting uncertainty and agitation distinguish the [capitalist] epoch from all earlier ones.”2 And again: “Modern industry never views or treats the existing form of a productive process as the definitive one. Its technical basis is therefore revolutionary, whereas all earlier modes of production were essentially conservative.”3 The nature of capitalism is therefore paradoxical—its end is unimaginable but so too is any status quo within it. Revolutionary change—in consumer goods, living costs, warfare, culture, nature and demographics—are always descending upon us under capitalism.

    Primitive communism, ancient slave societies and feudalism all arose gradually. The phase transitions triggered by natural human evolution, a warming Neolithic climate and the supplanting of Rome’s slave economy with feudalism all took place over centuries. Not so with capitalism. If capitalism is a spinning-hot mess of instability, conflict, technological invention and brutal exploitation, it’s because it was born in a frenzy of looting, genocidal violence, biological contagion and piracy. Feudal Europe was a pressure cooker of mounting debts, stifled trade routes, Catholic Inquisitions, bubonic plague and a bridled merchant class. Capitalism did not really emerge in the world—it exploded onto it the moment Columbus made landfall on Caribbean shores. Observing the golden adornments and timid nature of the Arawak people he encountered, Columbus salivated: “With fifty men we could subjugate them all and make them do whatever we want.”

    In a short matter of decades the indigenous societies, mired in less-advanced modes of production like primitive communism and slave economies, were broken to the thunder of Old World disease, technology and thirst for lucre. Gold and silver deposits in the Americas were drained by indigenous labour toiling under the swords of conquistadors, oceans were mercilessly exploited, vast tracts of land were cleared for plantations of sugar, tobacco and cotton, the African slave trade was engaged.4 From the European perspective, wealth seemed to amass from thin air, as all debts were paid far from home in the form of blood and environmental ruination. In a preview of what would later become the stock market, expeditions dedicated to pillaging native kingdoms were funded by investors risking capital for shares on future spoils. It was the ransacking of the Americas, the mass-utilization of African slaves and gunboat diplomacy in Asia that marked capitalism’s primitive accumulation stage. To follow still was the Industrial Revolution and formal colonization of South Asia, the Middle East and continental Africa.

    The concept of phase transition is also described as “the transformation of quantity into quality.” The pillaging of the Americas illustrates this, as a massive rupture to the feudal mode of production burst open once the natural and social wealth of two continents was exposed to those with armaments and the backing of mercantile investors. European land—the primary source of life and wealth through the feudal age—diminished in its preciousness, and the fortunes of the landed aristocracy diminished along with it. The massive surplus of inputs—precious metals, sugar, cotton, forced labour, etc.—was absorbed by the relatively small population of western Europe and forced a phase transition from a relatively closed and stable feudal system into a rabidly expansionary global capitalism.

    As land in Europe lost its importance in a rapidly evolving mode of production, pressure was applied to agriculture to squeeze more out of the lands. New rotation methods were implemented, new American crops like potatoes and corn were planted, new ploughs were deployed, peasants that had worked lands for generations were evicted by force. The separation of peasants from their livelihood on the land is how wage labour emerged. The collision between the masses of peasants dispossessed of their ancestral lands and a new class of capital owners is what gave birth to the modern system: 

    The historical conditions of [capitalism] are by no means given with the mere circulation of money and commodities. It can spring to life only when the owner of the means of production and subsistence meets in the market with the free labourer selling his labour-power. And this one historical condition comprises a world’s history. Capitalism, therefore, announces from its first appearance a new epoch in the process of social production.5

    Feudalism was being negated fast, especially in Britain where the Industrial Revolution began. The overwhelming amounts of resources flooding Europe spurred productive innovation in order to process it all. New forms of capital were merged into a fledgling factory system, such as steam power, milling machines, blast furnaces and power looms. But now the capital owner was faced with a unique problem posed by this new web of economic relations: overproduction. Too many goods could be produced for the domestic market to possibly absorb at a profit.

    Typical in the history of capitalism, the solution was found at the end of a gun. Leveraging their technological advantages, European states in the service of financial capital laid siege to India and China, the great powers of Asia. China became a dumping ground for opium and the Indian domestic economy collapsed as their market was flooded with cheap European textiles and manufactures. Much of South Asia and Africa were formally colonized, transformed into outlets for excess European production and becoming sites of resource extraction under systems of forced labour.

    It was these three broad motions that resulted in a world under capitalist domination. First, the pillaging of North and South America and genocidal exploitation of enslaved Africans and indigenous peoples. Second, the creation of a mass of wage labourers drawn from the European peasantry through enclosures that separated them from their land. Finally, the establishment of extractive colonies across almost the entirety of Asia and Africa. While these processes have continued to evolve rapidly over the 20th century to the present, the mechanism whereby one class extracts profit at the expense of another has not changed—it is baked into the logic of capitalism. The geographer, David Harvey, sums up capitalist history thus: 

    The transformation of labour, land and money into commodities rested on violence, cheating robbery, swindling and the like. The common lands were enclosed, divided and put up for sale as private property. The gold and silver that formed the initial money commodities were stolen from the Americas. The labour was forced off the land into the status of a “free” wage labourer who could be freely exploited by capital when not outright enslaved or indentured. Such forms of dispossession were foundational to the creation of capital. But even more importantly, they never disappeared.6

    It is difficult not to recognize capitalism as a zero-sum game when considering its history and present-day unfolding. Over a billion people in less-developed capitalist countries live in slums—a number projected to double by 2050. Over 700 “dead zones” without oxygen have formed in the ocean as a byproduct of heavy shipping traffic, plastic waste, overfishing and the acidification of waters by carbon emissions. Over 187 million people have died from wars involving capitalist competition over resources since the last century—and that number is climbing. Even in the core capitalist countries of the West, an increasing number of crises and epidemics are building—the mental health crisis, climate crisis, housing crisis, inflation crisis, drug epidemic, refugee crisis—with more to come. While its productive capacity is unquestionable, an enormous surplus is amassed by a small number of elite capital owners—close to 0.1% of the population—and arrives by a process of destabilizing exploitation, including international military coercion, imbalanced trade treaties and unmitigated pollution of the biosphere.

    It is the contention of classical Marxist philosophy that a positive-sum economy working for all is only possible along the lines of a democratic, classless economy that puts wealth creation and scientific discovery at the disposal of the working class. On progress under capitalism, Marx states:

    When a great social revolution shall have mastered the results of the bourgeois epoch, the markets of the world and the modern powers of production and subjected them to the common control of the most advanced peoples, then only will human progress cease to resemble that hideous pagan idol who would not drink the nectar but from the skulls of the slain.7

    Further Reading:

    Karl Marx, “The Future Results of British Rule in India.”

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    1. Mark Fisher, Capitalist Realism: Is There No Alternative? (Zero Books, 2009), 17. ↩︎

    2. Karl Marx and Friedrich Engels, The Communist Manifesto. ↩︎

    3. Karl Marx, Capital: Volume One (Ancient Wisdom Publishing, 2019), 318. ↩︎

    4. Ian Angus, “The Fishing Revolution and the Origins of Capitalism,” Monthly Review, Vol. 74, No. 10. ↩︎

    5. Karl Marx, Capital: Volume One (Ancient Wisdom Publishing, 2019), 120. ↩︎

    6. David Harvey, Seventeen Contradictions and the End of Capitalism (Oxford University Press, 2014), 57. ↩︎

    7. Karl Marx, “The Future Results of British Rule in India,” in Dispatches for the New York Tribune: Selected Journalism of Karl Marx (Penguin, 2007), 125. ↩︎