Consequences of Capitalism

1. Capitalism's core contradictions fuel social movements and resistance

"The contradictions that exist within a set of capitalist social relations in the production process lead to a fundamental antagonism between capital and labor."

Exploitation drives conflict. The basic contradiction in capitalism is the exploitative relationship between capital and labor. This leads to "old social movements" focused on labor conditions, wages, and workers' rights. As capital seeks to maximize profits, it inevitably comes into conflict with workers' interests.

Destroying conditions of production. A second contradiction arises as capitalism tends to destroy its own conditions of production: the natural environment, public infrastructure, and labor power. This leads to "new social movements" like environmentalism, civil rights, and feminism. These movements go beyond but remain connected to class struggle.

Constant contestation. The struggle over common sense and social change is continual, with both progressive and regressive forces pushing their worldviews. Social movements must contend with deeply ingrained beliefs and practices to effect change, making the battle for hegemony a crucial aspect of political power.

2. Neoliberalism emerged as a response to economic crises, reshaping global politics

"Neoliberalism is a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade."

Crisis and response. Neoliberalism arose in the 1970s as a response to falling profit rates and economic instability. It sought to reverse the gains made by labor and social movements in the post-World War II era. Key policies include:

• Deregulation of industries and financial markets
• Privatization of public services and assets
• Weakening of labor unions and workers' rights
• Tax cuts for businesses and the wealthy
• Reduction of social welfare programs

Global transformation. Neoliberal policies spread globally through institutions like the IMF and World Bank, often imposed on developing countries as conditions for loans. This led to:

• Increased economic inequality within and between nations
• Erosion of democratic control over economic decisions
• Growth of multinational corporations and financial institutions
• Intensified exploitation of natural resources and labor

3. Environmental destruction and militarism are inherent to capitalist expansion

"Driven by competition, decisions do not depend on the good or ill will of the individual. Free competition brings out the inherent laws of capitalist production in the shape of external coercive laws having power over every individual capitalist."

Ecological crisis. Capitalism's need for constant growth and profit maximization leads to severe environmental consequences:

• Depletion of natural resources
• Pollution and climate change
• Loss of biodiversity
• Destruction of ecosystems

Military-industrial complex. The drive for new markets and resources often involves military intervention and imperialism:

• Wars for control of strategic resources (e.g., oil)
• Arms industry profiting from conflict
• Military spending diverting resources from social needs
• Use of force to suppress resistance to capitalist expansion

Interconnected issues. Environmental destruction and militarism are deeply intertwined, with wars often fought over resources and climate change exacerbating global conflicts.

4. Media and intellectual elites often reinforce hegemonic common sense

"Leaders, with the aid of technicians in the field who have specialized in utilizing the channels of communication, have been able to accomplish purposefully and scientifically what we have termed 'the engineering of consent.'"

Manufacturing consent. Mass media, often controlled by a small number of corporations, play a crucial role in shaping public opinion and maintaining the status quo. This involves:

• Framing issues in ways that benefit elite interests
• Marginalizing dissenting voices and perspectives
• Promoting consumerism and individualism

Intellectual gatekeepers. Many academics and think tanks produce research and analysis that supports neoliberal policies and capitalist ideology:

• Economists promoting "free market" solutions
• Political scientists emphasizing limited government
• Historians downplaying class struggle and social movements

Alternative voices. Critical intellectuals and independent media challenge dominant narratives, but often face significant obstacles in reaching a wide audience.

5. Democracy erodes as wealth and power concentrate under neoliberalism

"There is no longer fear of excessive democracy."

Plutocracy ascendant. As wealth becomes increasingly concentrated, the political system becomes more responsive to the interests of the wealthy:

• Campaign finance laws favoring big donors
• Lobbying by powerful industries
• Revolving door between government and corporate sectors

Voter suppression. Efforts to restrict voting rights, particularly for marginalized communities, further erode democratic participation:

• Strict voter ID laws
• Gerrymandering
• Closing polling locations in poor and minority areas

Technocratic governance. Important economic decisions are increasingly made by unelected bodies like central banks and trade organizations, removing them from democratic control.

6. Primitive accumulation and dispossession continue in modern forms

"Accumulation by dispossession" is the term used to describe the continuation of primitive accumulation in modern capitalism.

Ongoing process. While often associated with the historical origins of capitalism, processes of dispossession continue today:

• Privatization of public assets and services
• Enclosure of common resources (e.g., water, land)
• Intellectual property regimes restricting access to knowledge
• Financial crises leading to foreclosures and asset seizures

Global dimensions. Accumulation by dispossession often occurs across national borders:

• Land grabs in developing countries
• Structural adjustment programs imposing privatization
• Debt as a mechanism of control and resource extraction

Resistance movements. Communities and social movements resist these processes through various means:

• Land occupations and reclamations
• Campaigns against privatization
• Alternative economic models (e.g., cooperatives, commons)

7. Social movements challenge the status quo but face powerful opposition

"Class struggles must end in either a revolutionary constitution of society at large, or the common ruin of the contending classes."

Diverse tactics. Social movements employ a range of strategies to effect change:

• Mass protests and direct action
• Electoral campaigns and policy advocacy
• Alternative institutions and prefigurative politics
• Education and consciousness-raising

State repression. Movements challenging existing power structures often face violent suppression:

• Police brutality against protesters
• Surveillance and infiltration of activist groups
• Criminalization of dissent

Co-optation and reform. Elites may attempt to neutralize movements by incorporating some demands while preserving core power structures:

• Superficial policy changes
• Symbolic representation without substantive change
• Channeling energy into "acceptable" forms of activism

8. Technological solutions alone cannot solve capitalism's contradictions

"It doesn't mean the problem is solved."

Tech as panacea. Many propose technological fixes to environmental and social problems without addressing underlying systemic issues:

• Geoengineering to address climate change
• Automation as a solution to labor issues
• Big data and AI for social planning

Limitations and risks. Technological solutions often:

• Fail to address root causes of problems
• Create new, unforeseen consequences
• Exacerbate existing inequalities
• Increase corporate control and surveillance

Socio-technical approach. Effective solutions require combining technological innovation with social, political, and economic transformation.

9. Alternative economic models emphasize worker control and sustainability

"The alternative that we're thinking about is an economy that's run by the producers, that is the workers themselves, through a democratization of the workplace."

Worker ownership. Various models of worker-controlled enterprises offer alternatives to capitalist firms:

• Worker cooperatives
• Self-managed enterprises
• Participatory economics

Economic democracy. Extending democratic principles to the economic sphere involves:

• Workplace democracy and self-management
• Community control over local resources and development
• Participatory budgeting and planning

Ecological sustainability. Alternative models often prioritize environmental concerns:

• Degrowth and steady-state economics
• Circular economy principles
• Local and regenerative production

Challenges. These alternatives face significant obstacles in a capitalist-dominated global economy, but provide important examples and experiments in building a more just and sustainable future.

Last updated: December 5, 2024