Letter: Capitalism’s limits? (2010)

Letter to the Editors from the December 2010 issue of the Socialist Standard

Dear Editors

Capitalism is reaching its expansionary limits and being driven by these limits to substitute saturation for expansion. It is turning inward and “eating out its own guts”. The result is “barbarism”. 

“Normal” capitalism generated profits through expansion (growth). Apart from some margin for maneuver in near-earth outer space, it no longer has room for profitable expansion. This drives the system to “expand” inward, deriving profits from forcing down production costs by cutting wages, forcing more family members onto the labour market, and imposing higher productivity levels on workers (intensified exploitation), thereby increasing the quantity of commodities but degrading their quality. Here again, force is an essential factor.

As Rosa Luxemburg wrote in The Accumulation of Capital in 1913, capitalism always needs an “outside” somewhere. Although material conditions have changed since Rosa’s time, this remains true in a “metaphorically substantive” sense. 

With capitalism expanded to its spatial limits and turned inward, exploitation and profits grow apace. The biosphere, however, is a fixed system of reproduction. It took “time out of mind” to generate the hydrocarbon fuels that production for profit has consumed in the course of less than 200 years. It is true that “biological resources, if rationally exploited, are renewable and therefore practically everlasting” (Standard, November 2010, p. 6). But globalised capitalism does not follow a rational logic and already has a toe in the waters of barbarism. Socialists must be the lifeguards on this shore: there is no alternative to socialism.

Joe R. Hopkins, 

Florida, USA.

Reply: 

As we pointed out in a reply to a letter in the September issue, Rosa Luxemburg’s book was based on a faulty analysis of capitalism even if its descriptive parts about the barbaric effect of the spread of capitalism are good. We don’t accept that capitalism does have any “spatial limit” – Editors.