Capital: The First 9,500 Years

Capital: The First 9,500 Years

Quick Reminders

  • Readings for the Week:

    • Leonard Read, “I, Pencil: My Family Tree As Told by Leonard E. Read” (1958)

    • Marx, “The Secret of Primitive Accumulation”

    • Benjamin Franklin, “Autobiography,” [BH, 66-75]

    • “Adam Smith and Colonial Capitalism and Slavery,” in JC

    • “Eric Williams” [JC, 371-390]

  • Other reminders?

What is Capital?

  • Definition & Historical Context

    • The concept of “capital” is complex and evolving, meaning it may take the entire semester to fully grasp.

    • The answer to what capital is changes over time and across different historical contexts.

  • Etymology

    • The term 'capital' derives from Latin 'caput' which relates to terms like capital, chattel, and cattle (historically linked to ownership and property).

Original Concept of Capital in Early Capitalism

  • Definition in 18th-Century Political Economy

    • Defined as “capital stock,” it signifies a type of property.

    • Notion emphasized by John Locke:

    • Property derives from labor under appropriate conditions.

Key Elements Discussed in Capitalism

  • Core Components:

    • Labor

    • State

    • Rules

    • Technology

    • Stuff (material goods)

    • Trade

    • Culture

Economic History Overview

  • Income Per Person Over Time

    • 1800 is set as baseline (1.0) with other points plotted across a timeline noting variations in income per person globally from BC 1000 through AD 2000.cx

    • Reference to Malthusian Trap, Great Divergence, and Industrial Revolution, highlighting disparity in economic progress.

Historical Perspectives on Property

  • Quote from John Locke:

    • “In the beginning, the whole world was America.”

    • Explores claims of property ownership based on cultural assumptions.

    • Discussion of the “doctrine of discovery,” which rationalizes conquests and colonization.

John Locke's assertion that "In the beginning, the whole world was America" reflects a profound colonial perspective that interprets the untamed landscapes of the Americas as a blank slate ready for occupation. This statement underscores the ethnocentric view that disregards the existing societies and cultures of Indigenous peoples, assuming instead that land holds value only when it is cultivated or commodified in the European sense.

This perspective invites further exploration of claims of property ownership, which often stem from cultural assumptions that prioritize individualism, accumulation, and labor as the basis for rightful ownership. Different cultures have unique views regarding land and property; for many Indigenous communities, land is seen as a communal resource deeply intertwined with their identity and spirituality, contrasting sharply with the capitalist assertions of private ownership.

The "doctrine of discovery" serves as a framework for legitimizing the relentless advance of colonial powers. This legal and philosophical principle asserts that nations could claim sovereignty over lands not inhabited by Christians, effectively erasing the rights of Indigenous peoples. The ramifications of this doctrine continue to resonate, influencing legal systems and property rights discussions today, as it rationalizes historical injustices through a lens of cultural superiority and entitlement. These narratives shape contemporary understandings of land ownership, sovereignty, and cultural heritage within an increasingly global context

Reading Selections from Karl Marx

  • **Key Works to Explore:

    • Communist Manifesto** (previous week)

    • Das Kapital, Vol. 1, Chapter 31:**

    • Das Kapital is a foundational theoretical text in materialist philosophy and political economy, written by Karl Marx. It serves as a critical analysis of political economy, particularly capitalism, and its socio-economic implications.

      • Key Themes:

        • Commodity and Capital: Marx begins with the analysis of commodities and the dual characteristics of value - use value and exchange value.

        • Labor Theory of Value: He posits that the value of a commodity is determined by the socially necessary labor time required to produce it.

        • Surplus Value: A central concept in Marx's critique, surplus value is the difference between what laborers are paid and the value they produce, which forms the basis of profit in capitalist systems.

        • Capital Accumulation: The accumulation of capital is explored through the mechanisms of exploitation and the inherent contradictions within capitalist economies.

      • Structure:

        • Volume Breakdown: The work is divided into multiple volumes, with the first volume focusing on the process of capitalist production, while later volumes address distribution and the dynamics of capitalist economies.

        • Methodology: Marx employs a dialectical method, analyzing contradictions within capitalism and how they lead to its eventual instability and potential collapse.

      • Historical Context:

        • Influence: Upon its publication, Das Kapital had a profound impact on economics, political science, and sociology, laying the groundwork for various schools of thought, including Marxism and critical theory.

      • Relevance Today:

        • Contemporary Issues: Marx's analysis remains relevant in discussions of economic inequality, labor rights, and critiques of capitalist systems amid globalization and neoliberalism.

      Understanding Das Kapital involves grasping Marx's critique of how capitalism functions and how it affects relationships of power, production, and social structure in a historical context. It invites ongoing debate and reflection on economic systems and social justice today.

    • Discusses “primitive accumulation” (violently separating producers from their means of production— marx argued this was not a natural, gradual process rather brutal historical precondtion. Enclosure of common land, expelling peasants, colonial conquest of land. Establishing national debt and a modern tax system concentrated wealth in fewer hands. Class of owners accumulating wealth and landless laborers) as vital for the emergence of capitalist structures.

    • Describes events such as:

      • Discovery of gold and silver in America

      • Enslavement and mistreatment of native populations

      • Seizure of territories in the East Indies and Africa

    • Covers the commercial rivalries that ensued among European nations.

  • Primitive Accumulation Description

    • Specifies how early capitalist production evolved from brutal mechanisms to systematic economic practices, underscoring the role of state power in societal transformation.

  • Observation on cotton industry by Marx:

    • Acknowledgment of how labor practices evolved, transforming patriarchal slavery systems into exploitative commercial slavery in the United States.

Locke's Property Philosophy

  • Locke’s Views:

    • Complete assertion of individual private property as a natural right.

    • Queries around his perspective of the world before private property emerged.

    • life, liberty, and property… Jefferson later changed to life, liberty, and the pursuit of happiness

Discussion on Peasantry

  • Concept of Peasants:

    • Inquiry into defining peasantry and tracing its historical prevalence.

Social class within agricultural societies, typically characterized by small-scale farming and a reliance on subsistence agriculture. Peasants often work on land that they either own communally or rent from landlords, and their livelihoods are heavily influenced by local customs, traditions, and community ties. This class is historically significant for its unique relationships to land, labor, and local economies, often standing in contrast to capitalist systems that prioritize individual property ownership and profit maximization. The concept of peasantry also encompasses varying degrees of autonomy, social status, and economic resources among different communities, making it essential to understand within historical and cultural contexts.

Vavilov Centers & Domestication

  • Notable Domesticated Plants:

    • Includes a list of plants cultivated by various civilizations, indicating biodiversity and agricultural practices.

Assumptions about Peasant Agriculture

  • Common stereotypes include being unchanging, inefficient, unproductive, and non-innovative.

  • Malthusian Cycles:

    • Introduces the cyclical cycle of population growth and resource limitation.

Animal Domestication Timeline

  • Key Milestones:

    • 40,000-20,000 BCE: Dogs

    • 9000-5000 BCE: Sheep, goats, cows, chickens

    • 5000-2000 BCE: Buffalo, llama, horse, donkey, camel (introducing draft animals)

    • 3000 BCE-1000 BCE: Cats

    • 1000 BCE-0: Turkeys

Peasant Wealth & Partnerships

  • Resources for Peasants:

    • Wealth derived from land, animals, and community institutions, distinguishing them from capitalist private ownership models. EMPHASIS ON COLLECTIVE USE AND SUSTAINABILITY (soil health)

    • Importance of soil management, crop diversity, and legacy into future generations.

Critique of Agriculture

  • Jared Diamond’s Argument:

    • Questioning whether agriculture was detrimental to human societies in terms of health, environment, and social dynamics.

Human Population History

  • Population Milestones:

    • Historical analysis showcasing human population growth from around 5 million in 8000 BCE to 500 million by 1492 CE.

  • Comparison of Population Data:

    • Graphical representation of population growth trends with key annual figures and associated historical events.

Capital Concept in Peasant Societies

  • Forms of Capital:

    • Distinction between land capital (value derived from land) and mobile capital (such as cash and commodities that can be moved around), with insights into land usage and sovereignty changes throughout history.

Agricultural Enclosure and Commons

  • Historical Impact of Modern Agriculture:

    • Leads to what Marx termed “the metabolic rift.”

    • Discusses environmental and social consequences of capitalist agricultural practices, echoing through past and present contexts.

Marx's Capital Critique on Agriculture

  • Observations:

    • Capitalist production promotes urban concentration, disrupting ecological relations between humans and the earth.

    • Warns against impoverishing the soil's fertility and well-being of both land and laborers.

Relevance of Metabolic Rift

  • Modern Implications of Historical Practices:

    • Raises questions regarding ecological crises and food production amid surplus.

    • Seeks to understand current societal trends relative to past agricultural practices and crises.

Primitive Accumulation Reflection

  • Philosophical Inquiry:

    • Challenges the classification of primitive accumulation as merely a historical event, questioning ongoing processes of expropriation (process by which a government takes private property for public use, often with compensation to the owner) and capitalist expansion.

Peasant-Centric Narratives

  • Omissions in Historical Perspective:

    • Critical dialogue about the roles of cities, merchants, governments, education, religion, taxation, and warfare in shaping societies, often underrepresented in peasant narratives.

Wealth vs. Capital

  • Key Definitions:

    • Wealth is defined as total surplus production multiplied by historical context.

    • Capital comprises wealth adjusted by power dynamics, legal frameworks, cultural context, and technological advancements.

Thomas Piketty's Critique

  • Discussion Of Piketty on Marx:

    • Commentary on the importance of empirical data in discussing capital versus theoretical frameworks offered by Marx.

    • Highlights Marx's work as lacking statistical reference.