Sunday 1 July 2012

The Birth of Capitalism- A 21st Century Perspective- Henry Heller -Pluto Press 2012


In the preface to this book, Henry Heller describes the aim of the book is to lay the foundations for a better understanding of the world we live in so that we can "shape the future." I am not very sure he succeeds.

The book's subject matter has contemporary importance, given that 21st-century capitalism faces one of the biggest crisis in its relatively short existence. It should be warned that the subject of the book is complicated and requires a lot of background reading. For someone new to the subject, this is advisable.

In chapter one called the Decline of Feudalism, Heller discusses one of the most critical topics in the Marxist lexicon. The debate over the transition from feudalism to capitalism has been raging since the early part of the twentieth century. Perhaps the most famous exchange over the decline of feudalism and the origins of capitalism was between the Stalinist Maurice Dobb and fellow traveller Paul Sweezy.

The two differed amongst many things, including whether the development of commerce with the Mediterranean and the Middle East, caused the decline of feudalism. Both were confirmed Stalinists and both hostile to contemporary Marxism, Trotskyism.

In his article Marxism and the political economy of Paul Sweezy, the Marxist economist Nick Beams describes Sweezey's early origins Paul Sweezy's views on political economy were to become central to what might be called the Monthly Review school. They were initially formed in the latter part of the 1930s, as he began to come to grips with Marx's analysis. Sweezy's first and, in many ways, most important work, The Theory of Capitalist Development, arose largely out of a process of self-clarification. It had its origins in classes he conducted on the economics of socialism, which included an examination of the theories of various socialist writers. As Sweezy later recounted, in the course of the graduate seminars he sought to raise the level of treatment of Marx, discovering that it involved a "long hard struggle to overcome the traditions and inhibitions of a neoclassical training... It took me a long, long time before I could accept the Marxist labour value theory because I was totally accustomed to the type of thinking of marginal utility price theory, and so on. And ... for a long time, I couldn't see how there could be another kind of value theory with totally different purposes.” But The Theory of Capitalist Development was not simply a presentation of Marx’s ideas. In it, Sweezy was to sharply differ with Marx's analysis of the law of the falling tendency of the rate of profit. Since his treatment of this question is intimately bound up with his political orientation and his analysis of American capitalism in Monopoly Capital—a work that was widely read during the political radicalisation of the late 1960s and early 1970s.[1]

Sweezey's debate with Dobbs coincided with the beginning of a systematic attack on the Marxist conception of a transition from feudalism to capitalism. As the radical writer, Dominic Alexander outlines"The origins of the capitalist system in a series of revolutionary transformations, political, industrial and even scientific was once broadly accepted, sometimes celebrated, by mainstream history. For over thirty years now, however, the relevance of the very concept of revolution to social change has been under systematic attack. One choice means of neutralising the idea of revolution is to posit the problem of continuity and change in history. Approached with suitably myopic terms of reference, it is always possible to eliminate the discontinuities across time and to find that revolutionary phases, in fact, changed little. It is now possible to reject the very notion of a capitalist mode of production and any transition from feudalism to capitalism, by claiming, for example, the long existence of a single world system of trade".[2]

Most of the chapter and for that matter, most of the book is spent attacking the political and historical conceptions of the pseudo-left writer and historian Robert Brenner. Heller incorrectly labels Brenner a Trotskyist and predictably but no less criminal he uses other pseudo-left writers namely the SWP(Socialist Workers Party) member Chris Harman to refute Brenner.

While from an editorial point of view, there is nothing wrong in placing Brenner at the heart of this very contemporary debate over the emergence of capitalism. From a political or historical viewpoint, Brenner is not that important.

Like many historians close to the pseudo-left groups, Heller has a tendency to throw the words Trotskyist and Marxist around with gay abandon. Regarding the feudalism/capitalism debate, Heller's approach has been described as “separating the decline of feudalism from the emergence of capitalism" which is countered by Brenner who favours a "conceptual and chronological divide" between feudalism and capitalism. Heller believes Brenner has an Anglo-centrist viewpoint. In that Brenner ignores the fact that early capitalism did not occur solely in Britain

For someone who has been labelled a Marxist historian Heller barely mentions one of the most critical Marxists produced by the 20th century Leon Trotsky. Even a cursory look at Trotsky's work which Heller devoted only three mentions in the whole book would throw a tremendous amount of light on the positions of Heller and Brenner. As Trotsky explains "the entire history of mankind is governed by the law of uneven development. Capitalism finds various sections of humanity at different stages of development, each with its profound internal contradictions. The extreme diversity in the levels attained, and the extraordinary unevenness in the rate of development of the different sections of mankind during the various epochs serves as the starting point of capitalism. Capitalism gains mastery only gradually over the inherited unevenness, breaking and altering it, employing therein its own means and methods. In contrast to the economic systems which preceded it, capitalism inherently and consistently aims at the economic expansion, at the penetration of new territories, the surmounting of economic differences, the conversion of self-sufficient provincial and national economies into a system of financial interrelationships.

He continues "thereby it brings about their rapprochement and equalizes the economic and cultural levels of the most progressive and the most backward countries. Without this primary process, it would be impossible to conceive of the relative levelling out, first, of Europe with Great Britain, and then, of America with Europe; the industrialization of the colonies, the diminishing gap between India and Great Britain, and all the consequences arising from the enumerated processes upon which is based not only the program of the Communist International but also its very existence. By drawing the countries economically closer to one another and levelling out their stages of development, capitalism, however, operates by methods of its own, that is to say, by anarchistic methods which constantly undermine its own work, set one country against another, and one branch of industry against another, developing some parts of world economy while hampering and throwing back the development of others." 

As regards Brenner, there is a dialectical relationship between his politics and his historicism which the reader should be aware of. To paraphrase the great historian E. H.Carr one should know how many bees are buzzing around in a historians head.

One of Brenner's most important article regarding the transition debate was the  'Agrarian Class Structure and Economic Development in Pre-Industrial Europe' in Past and Present (1976). The article was described as a framework within which to interpret the English Revolution of 1640 to 1660.

Brenner carried this framework into his most important book that centred on the English revolution, which mainly concentrated on the rise of the merchants and particularly the role of the London merchants in the English revolution.[4]

Brenner is heavily criticised in Heller's book for his heavy emphasis on this group of capitalists. Brenner was not the first historian to concentrate on this group. Although not a Marxist, the historian Valerie Pearl in her book[5] provides us with one the first and substantial look into the allegiances of London merchants in the civil war.

Her research leads her to show that the majority of the biggest merchants who controlled the large chartered overseas trading companies and the government of the city were royalists, while the parliamentarians were 'merchants of the middle rank',. They were undoubtedly wealthy, but not the richest men in the city. They were important traders but not directors of the chartered companies.”

Brian Manning also draws attention to the mix of the bourgeoisie on both sides saying that "a serious problem in analyzing the parties is that even among well-documented groups like gentry and merchants there are substantial numbers of whom no information can be found of their allegiances in the civil war. Brenner has examined 274 of the London merchant elite, but for about half of them, there is no evidence about which side they supported, and this must be borne in mind when drawing conclusions. Of 130 merchants who can be allocated to the parties, 78 were royalists, 43 were parliamentarians, and nine were side changers. Breaking these figures down, he finds that the leading merchants of the Levant and the East India companies, which controlled the city government before the revolution, were overwhelmingly royalists, while the Merchant Adventurers, who were now less dominant than they had been in the 16th century, were more evenly divided”.

The fact that there was bourgeois on both sides has been used by revisionist historians to deny the premise of an English bourgeois revolution. This viewpoint was refuted by the Marxist writer Ann Talbot who said "there were gentlemen and landowners on the Parliamentary side in the civil war and small farmers and artisans on the Royalist side. One could not expect a chemically pure revolution in which the members of one social class lined up one side of the barricades and those of the other on the opposite side. However. According to Talbot, the revolution pushed"people of diverse social backgrounds into struggle against the king and well-grounded enough in history to identify new and revolutionary ideas in the curious and archaic guise in which they appeared—as the ideologists of the revolution ransacked the Bible and half-understood historical precedent for some kind of theory to explain what they were doing.

The problem with Heller's critique of Robert Brenner's so-called Political Marxist tradition is that aside from a few disagreements, he shares many of Brenner's pseudo-left positions. The fact that Heller fails to point out that Brenner's brand of Political Marxism is widely accepted in academia is deeply disturbing.

Brenner is part of an informal collection of left-wing academics called the "No Bullshit Marxism Group.” This extremely disparate group, many of whom, do not even claim to be Marxists like Philippe Van Parijs, have one thing in common which is their opposition to classical Marxism and would like to replace it with "Analytic Marxism.”

The main problem with Brenner’s work is its dangerous concentration on the national over the international form when it comes to the English revolution. The fact that the English bourgeois was far more advanced than its European counterparts does not separate it from the development of capitalism in Europe which was also developing albeit at a slower pace as Leon Trotsky pointed out earlier in this essay.

Marx saw the development of capitalism as global not national as he explained in Capital "the discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black-skins, signalised the rosy dawn of the era of capitalist production. These idyllic proceedings are the chief momenta of primitive accumulation. On their heels treads the commercial war of the European nations, with the globe for a theatre. It begins with the revolt of the Netherlands from Spain, assumes giant dimensions in England's Anti-Jacobin War, and is still going on in the opium wars against China. The different momenta of primitive accumulation distribute themselves now, more or less in chronological order, particularly over Spain, Portugal, Holland, France, and England. In England at the end of the 17th century, they arrive at a systematical combination, embracing the colonies, the national debt, the modern mode of taxation, and the protectionist system. These methods depend in part on brute force, e.g., the colonial system. But, they all employ the power of the State, the concentrated and organised force of society, to hasten, hot-house fashion, the process of transformation of the feudal mode of production into the capitalist mode, and to shorten the transition. Force is the midwife of every old society pregnant with a new one. It is itself an economic power”[6].

To conclude, to tackle all the theoretical problems coming out of Heller's book would take another book to answer. Perhaps the most dangerous part of his philosophy is his solution to the crisis of capitalism today and the prospects for socialism.

Despite capitalism's crisis, Heller believes that socialism is off the agenda for hundreds of years. Heller believes that the working class will have to go through "experiments in socialism" before it can overthrow the system.

Heller regurgitates all the old discredited and failed theories that have led to countless betrayals of the working. Heller rejects the need to build a Bolshevik type party but insists that all sorts of socialists need to get together in a non-sectarian way to build a movement to overthrow capitalism.










[1] https://www.wsws.org/en/articles/2004/04/ps2-a07.html
[2] https://www.counterfire.org/articles/book-reviews/15752-the-birth-of-capitalism-a-twenty-first-century-perspective
[3] Leon Trotsky, The Third International after Lenin, part 1, section 4
[4] Merchants and Revolution-Commercial Change, Political Conflict, and London's Overseas Traders, 1550-1653-by Robert Brenner-Verso
[5] London and the Outbreak of the Puritan Revolution: City government and national politics, 1625–43. Oxford: Oxford University Press. 1961.
[6] Karl Marx. Capital Volume One-Chapter Thirty-One: Genesis of the Industrial Capitalist-https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm