Instability and change in the world economy Book

This is the second book I've read by Lenin. This one's short, invective, and theoretically sweet. Could a Marxist ask for more…?

In this book, Lenin is exploring the contradictions inherent in 18th century capitalism, and the resolution capitalism seeks, within its own structures, to resolve the contradiction - or, the negation of the negation - which equals Imperialism. For Lenin, the increased concentration of the means of production, by those who 'win' on the 'free market' (even if winning means cheating and free market is a misnomer) will rise to a monopoly position. Lenin of course seems spot on about this observation, and this view is now generally accepted, hence trust busting, heavy state regulation, the requirement for too big to fail intervention, etc. Monopoly is a stage of capitalism, we've come to accept it, and Lenin chose to fight against it.

Lenin believes, again rightfully so, that members of an industrial and productive monopoly will begin to sit on the board of directors, intermingle with, and holds strong ties, with monopoly banks, or those that garner profit via 'Finance Capital.' Again, this is no surprise today. If you analyze who sits on the board of most of Wall Street's banks, along with GE, Lockheed Martin, Shell, etc, you'll find the same names cropping up. Thus, there is no real democracy in this 'free market,' there is influence and oligarchy. A financial oligarchy to be precise.

This oligarch will then be sure to guarantee that finance capital works in its interest, and prevents up-and-comers, from usurping their position, or even damaging their position, as the newest Monopoly Man. Moreover, whereas the Capitalism of Marx's period was obsessed with exporting commodities, once all colonies are fully colonized, and the territory is fully seized by the state, finance capital enters through the back door - hell maybe even the front, sometimes armed (i.e., with the state police, or US military on its side) - to cease exporting commodities, and begin to export capital. Capital will serve as the catalyst for production in the colony, where the colony will begin to do the exporting of raw materials, as backed by finance capital from a hegemon (albeit Lenin doesn't use this term), and ship the resources back to the hegemon, while paying interest on the finance capital lent to it. Thus, Imperialism is what follows successful colonization. Again, check out what the US was doing in Latin America after WWII, and the Middle East now, and it's hard to deny Lenin's claims.

There is a new development though in Capitalism, a negation of imperialism if you will. Now the oligarch doesn't just shift from board to board acting in its own interest, but it shifts from board, to board, to regulation agency, to seat in congress, to cabinet position in the White House, etc, using all these various outlets to act in the interest of monopoly capital. This is now known as the "revolving door" phenomena in Washington. Henry Paulson goes from Goldman Sachs, to Secretary of Treasury, to a private closed door meeting with Wall Street's oligarchy, constantly acting in the interest of finance capital, to name one example. Of course I doubt any of this would surprise Lenin, and it shouldn't surprise anyone else either, only offend them.