Yesterday I had the honor of speaking alongside George Caffentzis to answer the question, “What is Capitalism?” Certainly this is one of the core questions of our era, as millions of people are becoming politicized during the unending economic crisis and looking for an analysis that can explain what is happening to them. In order to make a better world, we first need to define the system that dominates the current one, and that is capitalism.
Yesterday’s packed event was the first in Occupy Philadelphia‘s ten-part educational series “Dissecting Capitalism.” It was audio and video recorded, the audio is already online HERE. Listen in!
[update 2/13: and here is the video of the talk, in two parts!]
Part 2:
Below is the outline I created for my talk (downloadable HERE). I tried to bring a holistic analysis of the system that could be understandable by the average person, but still contain a nuanced perspective of all the ways capitalism has screwed us over and screwed over our planet. I’ll be fleshing this out over the next several days to revamp the “What is Capitalism?” section of the website. [alex]
What is Capitalism?
“Know Your Enemy” – Rage Against the Machine
2/1/2012 – LAVA
Alex Knight, endofcapitalism.com
- Capitalism is a Global System of Abuse
- Common Sense Radicalism – speak to the core issue in a way everyone can emotionally understand
- How does it feel to live in a capitalist system? Like an abusive relationship.
- “The problem that has no name.”
- Social and ecological trauma
- BP Oil Disaster demonstrates system’s logic: profit over all, total lack of accountability
- Power, Abuse, Resistance
- Power-Over and Power-With
- Internalized Oppression vs. Inherent Need for Self-determination
- Systems of Abuse/Oppression: Patriarchy, White Supremacy, Class
- Some Features of Class Societies:
- Inequality – the few benefit at the expense of the many
- Economic production disconnected from human need
- Forced labor – slavery, wage slavery
- State violence – punishment, repression
- Warfare, Conquest
- Propaganda
- Unsustainable ecological abuse
- Popular resistance
- Capitalism is the most advanced Class Society
- Capitalism: Pyramid of Accumulation
- Financial Speculation
- Commodity Trading, Commodities
- Wage Labor, Wage Labor, Wage Labor
- Enclosures: the largest, but invisible part of the iceberg
- any energy, resources or labor taken by force or without just compensation
- Stages of Capitalism: 1492 – Present
- Mercantile Capitalism (1492-1793)
- Land Enclosures – displacement of European small farmers
- Colonization, Genocide
- Slavery
- Witch Hunts – attack on women
- Industrial Capitalism (1793-1971)
- Fossil fuel
- Mechanized production – Richard Arkwright’s steam-powered factories
- World War
- Welfare state – rising living standards in the Global North
- Neoliberalism (1971-2008)
- Globalization – industry moves to the Global South, elimination of all trade barriers
- Privatization/Deregulation – attack on welfare, rise of nonprofit industrial complex, prison industrial complex, “Structural Adjustment”
- Computerization – extreme isolation of the individual
- Astronomical Debt – rise of credit card industry, student loans, housing bubble
- Zombie Capitalism? (2008-Present)
- Neoliberalism is dead. Yet it walks amongst us?
- Bailouts are life support to the tune of $12 Trillion
- Austerity = cannibalism – foreclosures, unemployment, cutting services, wages, benefits, retirement, etc. destroy the basis for the massive consumption propping up the global economy
- Mercantile Capitalism (1492-1793)
- The Addiction Dilemma
- “Leave it with me and it will kill me. Take it from me and I will die.”
- Self-Hatred is the psychological norm under capitalism
- Addiction is a response to Trauma – stress, abuse, deprivation and displacement
- A social disease, not a personal failing
- Self-destruction vs. self-sufficiency
- The Need for Growth
- The system’s greatest strength is also its greatest weakness
- Inevitability of Crisis – the Shark
- The Profit Motive and the necessity of a return
- The End of Capitalism
- Ecological Limits to Growth: peak oil, peak uranium, peak water, peak food, peak transport, etc.
- Social Limits: resistance of everyday people, everywhere. Arab Spring, Occupy, Chinese workers.
- Recovery, Relapse, or Revolution?
Recommended Readings:
- Federici, Silvia. Caliban and the Witch: Women, The Body and Primitive Accumulation. Autonomedia 2004.
- Freire, Paulo. Pedagogy of the Oppressed. 1967.
- Heinberg, Richard. The End of Growth. New Society 2011.
- Klein, Naomi. The Shock Doctrine: The Rise of Disaster Capitalism. 2007.
- Maté, Gabor. In the Realm of Hungry Ghosts: Close Encounters with Addiction. 2008.
- Mies, Maria. Patriarchy and Accumulation on a World Scale. Zed Books 1986.
- Turbulence. “Life in Limbo?” Vol. 5, December 2009. http://www.turbulence.org.uk
Alex Knight is the editor of endofcapitalism.com and is writing the coincidentally named book “The End of Capitalism,” which argues that the global capitalist system is breaking down due to ecological and social limits to growth, and we are transitioning to a noncapitalist future. Alex was active in the new Students for a Democratic Society (SDS) from 2006-2009, and now spends most of his time organizing with the wonderful people of Occupy Philadelphia.
7 comments
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February 3, 2012 at 4:40 am
Marie Marshall
That looks like a pretty good framework for your lecture, Alex.
M
April 3, 2012 at 11:39 pm
Nalliah Thayabharan
Wall Street is a confidence trick, a dazzling edifice built on paper promises, gambling, bets and rampant speculations. Wall Street doesn’t manufacture or produce anything. Wall Street, however attractive it may appear, is built on paper.
Wall Street speculation caused a 70% increase in the price of wheat from June to December 2010 and severed food crisis in more than 35 countries. However, there was no significant change in the global food supply or in food demand. The total value of Wall Street speculative financial derivatives reached more than $600 trillion – about 10 times global GDP. Wall Street’s speculative derivatives are virtually untaxed and banks often avoid paying tax on profits from selling derivatives. Every consumer is paying more for commodities including food and fuel due to the excessive speculation by Wall Street.
Modern day bank robbers are at Wall Street but they wear grey suits and not masks. Rampant speculators, propagandists and financiers of Wall Street are all given some unfair advantage over the average consumers and taxpayers and the cumulative effect of the people watching selfishness prevail over the public interest has been an undermining of the public’s trust in the present US government. There’s no question that Wall Street is rigged against the average consumers and taxpayers. Wall Street has a lot more information. Wall Street jerry-rigged the system so that Wall Street always win. If Wall Street loses trillions, the US Treasury will bail the Wall Street out so it can go back and do it again.
50 trillion dollars in global wealth was erased between September 2007 and March 2009, including 7 trillion dollars in the US stock market, 6 trillion dollars in the US housing market, 8 trillion dollars in the US retirement and household wealth, 2 trillion dollars in the US individual retirement accounts, 2 trillion dollars in the US traditional defined benefit plans and 3 trillion dollars in the US nonpension assets. Greed, arrogance and incompetence created a massive meltdown, cost trillions, and still Wall Street comes out richer and more powerful.
There are trillions dollars of new money taken again from Americans to make deals and hand out outrageous bonuses. And when these trillions run out, Wall Street will come back for more until the dollar becomes junk. The value of the US dollar declined very significantly during the last 70 years. The value of the US dollar in 1940 was worth 2,000% more than the value of the US dollar now.
The USA emerged from the World War II as the richest and most industrialized country in the world, with 50% of world’s manufacturing facilities. But today the USA is basically approaching bankruptcy. Many big US manufacturers are outsourcing to Mexico and China to increase their profits, adding more unemployment in the USA. Manufacturing jobs in the USA declined 37% between 1998 and 2010. Since manufacturing industries has declined in the USA, the US competitiveness in the global marketplace has also declined.
Robust financial markets don’t imperil capitalism. In the early 1980′s Wall Street began to escape reasonable important regulations of the marketplace. The US government gradually adopted a “too big to fail” policy for the Wall Street, saving lenders with failing businesses from losses. The demise of Glass Steagall act helped spawn the credit crisis by allowing the Wall Street to create financial instruments that allowed them to escape reasonable limits, including constraints on speculative borrowing and requirements for the disclosure of important facts. The extremely lucrative hedge funds and other risk management derivatives including credit default swaps don’t fund or invest in successful growing businesses. The credit default swap market was the single biggest cause of the crash 4 years ago.
Wall Street’s suicidal capitalism built on rampant speculation eventually posed an untenable risk to the US economy—a risk that culminated in the trillions of dollars’ worth of the US government bailouts and guarantees that the US government scrambled starting in late 2008. But in 2008 the US government was compelled to replace private risk takers at the Wall Street with government capital so that money and credit flows wouldn’t stop, precipitating a depression. As a result, these Wall Street became impervious to the vital market discipline that the threat of loss provides. Wall Street lenders of the financial markets continue to understand that the US government would protect them in the future if necessary. This implicit guarantee by the US government harms capitalism and economic growth.
The top 6 US banks had assets of less than one fifth of US GDP in 1995. Now they have two third of US GDP. The financial crisis was created by the biggest US banks to consolidate power. The big banks became stronger as a result of the bailout by the US Treasury. The big banks are turning that increased economic clout into more political power. Wall Street has undue influence on the US government policies and this situation reflects a failure of democratic representation for the other 99 percent Americans.
Oligarchy is the political power based on economic power. And it’s the rise of Wall Street in economic terms, that it’d turn into political power. Wall Street will then continue to feed that back into more deregulation, more opportunities to go out and take reckless risks and capture trillions of dollars.
Wall Street only has the lobbyists. Today more than 42,000 Wall Street lobbyists manipulate USA’s 537 elected officials with huge campaign contributions that fund candidates who support their agenda. It no longer matters who’s the President of USA.
The political and economical leadership of the US has chosen to cartel profits and transformed the US economy to serve the colluding and unlawful oligarchy. The political and economical leadership of the US is bailing out failed paradigms with trillions of dollars while committing social injustice to its people. The political and economical leadership of the US including the US Congress have now become Wall Street’s “Trojan Horses”. The US banks are borrowing money at near zero interest from the US government, then lending it back to the US government at even mere fractions higher interest than they are paying. The net interest margin made by the US banks by lending the money back to the US federal government in the first 6 months of 2011 is 210 billion dollars.
Gerge W Bush and Barrack Obama have doubled the US debt, and the American people have no benefits from it. The US military did not conquer Iraq and has been forced out politically by the government that US established. There is no victory in Afghanistan, and after a decade the US military does not control Afghanistan. Huge sums of US taxpayers’ money have flowed into the US armaments industries and huge amounts of power into Homeland Security. The American empire works by stripping its citizens of wealth and liberty.
The organizers and profiteers of war and death – the past four generations of Bush family – Samuel P Bush, Prescott S Bush, George H W Bush and George W Bush along with a group of international investment bankers and corporate executives, have been instrumental in creating and profiting from extremely costly and destructive wars. Four generations of Bush family have reaped tremendous profits from the wars they orchestrated. The war profiteers of Wall Street are now pushing the US towards a nuclear war with Iran.
Due to the oligarchs’ rapacious looting and their purchase of a politically protected luxurious lifestyle, the people of the US are on the road to permanent serfdom under a police state. Tens of millions in the US live desperate slave like existences and they hold little hope for a better life. The democracy was not given to the people of the US on a platter. It is not theirs for all time, irrespective of their efforts. Either people of the US organize and they find political leadership to take this on or they are going to be in deep trouble.
The failures of governance to address the current critical issues have already produced catastrophic consequences. Now we are experiencing a major global paradigm shift and it is still unfolding. Thirty-two US states including California, Illinois, Nevada, Arizona, Florida, New Jersey and Michigan are on the brink of insolvency as their tattered and fading economy is now direr than ever. Inevitably in very near future the US government will order police or military to martial law which may lead to a second American revolution.
“There is no calamity greater than lavish desires, no greater guilt than discontentment and no greater disaster than greed”
– Laozi
“Greedy desire is endless and therefore can never be satisfied”
– Buddha
April 4, 2012 at 12:07 am
James
Interesting points however I am not sure the problem is capitalism, It sounds like you are referring to consumerism and a corrupt political system.
Consumerism creates a problem because everyone feels they are entitled to something because someone else has it. There are only a few things in life that you are entitled to and among them are life, liberty, and the pursuit of happiness. It is very important for people to understand that you are entitled to freedom, to choose what you want to do and how you want to do it so long as you do not interfere with the freedom of others. If you want to live in a different manner than your neighbor then not only do I think you have every right to do that I strongly support your decision.
As for the corrupt political system, I believe that it is time for us to see past a corrupt two party political system, we have to stop voting on the lesser of two evils, we have to get involved, we have to hold them accountable, we have to make the change. We can not continue to let them give businesses, corporations, etc large tax brakes and then force us to pick up the tab. We must remove these discretionary things from our government because it breads corruption.
Sorry for my rant, I understand why people dislike the current state of capitalism and I will always encourage political discussion. It was through discussion that our forefathers founded America and it is through discussion that we will continue to be America, but I believe that it is the job of our citizens to make the change and hold them accountable, much the same way our country started.
“The price of freedom is eternal vigilance.”
–Thomas Jefferson
January 10, 2013 at 9:58 pm
Sandy
Here’s the problem: Corporations are actually slave plantations & all employees are slaves, so the wage system is illegal! It’s murdering millions of people worldwide every year! CEO’s are modern slaves, who used to be called overseers on plantations in USA. It’s all true. Think about a minute. Compare any corp. to a southern slave plantation & see they’re the same thing. Especially study the Industrial Revolution & you’ll see it was slavery…..for small wages. And the wage system is illegal because slavery is illegal in all its forms.
Slavery has many forms. Slavery is defined as “someone who is controlled by someone or something.” See??? The wage system is defined as a “system of control.”
Employees’ lives are controlled entirely, & they have to bow down to supervisors/corporate rules or get fired & that’s where you see it’s slavery. “No control.” Slavery is when temp employees “Be here to work Sat. or don’t come back on Monday!” That is slavery. Capitalism was never a “new system” … it was a new NAME for slavery. Many people have said the wage is slavery but there was no one to end it or publish that fact (easily),….until the INTERNET! Multinational corporations LOOK like slave plantations! They hire a few people but leave the majority to starve because no one can ever “create” enough jobs. Cars/trucks kill 50,000 people a year in US so obviously need to be eliminated, & never should have existed! Read “When Corporations Rule the World” to see how we were forced to need money so no one is free until we eliminate money, & until there is perfectly equal wealth & end world poverty.
A few who know it’s slavery: Gerry Spence (Give Me Liberty)(he’s a lawyer). Mother Mary Jones, Eugene Debs, Helen Keller, George Bernard Shaw, Bertrand Russell, Karl Marx, Howard Zinn, Noam Chomsky, Martin Luther King Jr, Fredrick Engels, Emma Goldman & many more. But Capitalists forced all that information into hiding.
Get out of your damn corporate slave plantation/s or reap the consequences (death before getting old, with your whole family in your evil car.) Then fight against corporations & capitalism to be cleansed of being a mass murderer by the wage system. Join Occupy Movements.
April 21, 2013 at 8:04 am
Jonathan Smith
@Sandy:
you are almost correct. We are not living in the same period as “the slaves”. In fact, we live in the same period that existed immediately after abolishment of slavery. Let me tell you.
Right after slavery was abolished, the slaves were cheering, they were very happy. They were free and left the plantations. But wait… where were they going to sleep? What were they going to eat? Left with no options other than famine and homelessness, they went back to their slave owners and cut a deal. The slaves would get back to work and in return they would receive income, home and food. Wonderful deal! They were still doing the same work as before, except that now they were free slaves.
Today we are still free to work, but required to pay bills. We have made some progress since the abolishment of slavery, because now we have unions and well defined laws. But in essence we still live in the time immediately after slavery was abolished. We think we are free because we can give up our jobs whenever we feel like it. In reality we are tied to our jobs and cannot afford to have a house without a job.
January 10, 2013 at 10:03 pm
Sandy
All people should own all things worldwide to end slavery/oppression & world poverty. Look at Chevron going to Nigeria & hired a handful of Nigerians leaving the rest to starve. Obviously the wage is the problem not the solution! Eliminate all JOBS (Read CLAWS esp Bob Black & Bertrand Russell comments) & start working part-time building beautiful 100-story Tower cities & Trains.
January 24, 2014 at 2:48 am
don findlay
In 1887, a man named Edward Bellamy wrote a scathing critique of 19th Century capitalism which captured the imagination of the nation and quickly became a best seller. In this famous fantasy, Julian West goes to sleep and awakens 113 years later (in the year 2000) to find that capitalism has been replaced with a far superior socio-economic order. Bellamy’s description of the world that awaits us if we could just shake free from the grip of greed and competition is absolutely brilliant. This book is a must read for all progressive thinkers and it is available for free here: http://www.gutenberg.org/ebooks/25439