10 Comments

We written as usual. But in regards to finance capital being a new form (which seems to implied when you wrote "attacking the the old form"), In 'Imperialism, the Highest Stage of Capitalism,' Lenin discusses "Finance Capitalism" as a core feature of the imperialist phase of capitalist evolution. And describes it as the merging of banking/high finance and industry, leading to the creation of oligarchical finance and the dominance of finance over industry. Since that was written in 1916, is all this really new? (I think in form and intensity it is, if not so much in substance...)

Expand full comment
author

Excellent point Mike. That was why I took the detour into the New Deal in the piece.

Banking regulations were rewritten in the 1930s to separate traditional banking from speculation. This was a partial structural solution that limited the ability of financiers to plays games in the manner Lenin addresses.

What it didn't do is end capitalism. In my view, not Lenin's, this pushed the matter forward in history.

Could there be another New Deal to do the same today?

I don't think so. The US is so far down the neoliberal rabbit hole that no workable solutions are likely to come from it.

This written, I'm not a determinist. We have to figure this situation out. Nature isn't going to do it for us.

Expand full comment

Good points! I'll add that the 1930s were a mixed bag on that front because the Banking Act of 1935 began the process of effectively neutering the regional Federal Reserve banks (it eliminated them being the ones who did the open market operations, each within their regions and centralized that with the national entity). But they also kept the inhibitors on interstate banking competition (which was effectively a capital flow inhibitor as well) by re-enshrining them within Glass-Steagall, although those were done a away with a few years earlier than the investment banking separation from comm banking, in 1994 with the Interstate Banking Efficiency Act, although if I remember correctly some of its actions didn;t take effect until 97

Expand full comment

THIS IS RIGHT! To psychologise these ‘actors’ is just simply to personalise the system to obfuscate what is happening: “….this is due to market structure in applicable industries, not to the moral failing of capitalists”, which is, of course, as the final sentence of this analysis makes clear: “Attacking the old form distracts from effectively addressing its evolutionary product”.

Expand full comment

Mr Urie, excellent commentary. I am particularly impressed by your writings on NAFTA and the totality of its effects upon Indigenous people. I'm hoping with AMLO's work against importing GMO corn due to health reasons "we favor health over trade" Mexico's corn industry can again produce high quality products.

Expand full comment
author

The challenge is that history only moves in one direction. With the Mexican peasantry destroyed or displaced by NAFTA, its shared knowledge of localized corn production and the role of corn in the peasant economy have been substantially lost. Additionally, GMO corn cross-pollinates with non-GMO corn to make all corn GMO.

Hopefully Mexico has seed banks with traditional varieties of corn to be recovered. But any move to recover traditional (sustainable) agriculture will be met with the full wrath of the US agricultural lobby.

There is a path forward for the people of Mexico. But the history of the US couping governments that threaten US economic interests shouldn't be ignored.

Expand full comment

I'm so glad I began reading your work. Naked Capitalism recommended you in the past, I'm banned from commenting there and due to personal stubbornness chose to assume the friend of an enemy is also an enemy. Native thing I guess. Appreciate your work Mr Urie.

Expand full comment

these people must be wiser than the rest of us mopes. they aren't being ground down by mortgage, education and medical debts. we owe THEM for all of that, until the end of time it seems. or until we have nothing left and no means to pay.

Expand full comment
author

The Feds subsidize low wage employment with WIC (Food stamps), rent subsidies, and tax credits.

These in turn serve as agricultural subsidies, landlord subsidies, and retailer subsidies. In other words, they subsidize 'private' profits.

Our lords and masters will continue to use us as Federal-subsidy-delivery-devices in this system of public subsidies for private profits.

So,, Noway, fear not. We will be maintained at some minimal level for the benefit of our betters.

Expand full comment
Feb 5·edited Feb 5

that's part of the problem, isn't it? not only to prop up some of the worst of the Ownership class (i bet anything an overwhelming amount of these subsidies goes right back to major corp profits because I know how poor people are forced to live) but also to be maintained in a penury so low you can't ever climb out.

people on SSDI (as an example of such "maintenance")do not live, they exist. in a system that seems set up to try to make them not exist anymore.

Expand full comment