The Geography of Capitalist Accumulation: A Reconstruction of the Marxian Theory
THE GEOGRAPHY OF CAPITALIST ACCUMULATION: A RECONSTRUCTION OF THE MARXIAN THEORY
I. Introduction to Capitalist Accumulation
The spatial dimension of Marx's theory regarding capital accumulation has often been overlooked.
This oversight is partly due to the fragmentary nature of Marx's writings on the topic.
Despite this, a thorough analysis of his works reveals that Marx acknowledged capital accumulation as occurring within a geographical context and that this, in turn, shapes specific geographical structures.
Marx’s approach contributes to two significant areas:
Development of a novel location theory with dynamic elements at its core.
Linking the general processes of economic growth to spatial relationships.
This locational analysis serves as a critical connection between Marx's theory of accumulation and the Marxian theory of imperialism.
This gap has been largely unrecognized in scholarly pursuits.
II. The Theory of Accumulation
Core principle: Marx places the accumulation of capital at the center of capitalist growth.
Accumulation acts as the driving engine of economic growth in the capitalist mode of production.
The capitalist system is inherently dynamic and expansionary, continuously reshaping societal structures.
A stationary state of simple reproduction contradicts the survival of capitalism:
Expressed by the bourgeoisie’s historical mission: “accumulation for accumulation’s sake, production for production’s sake” (Capital, I, p. 595).
The historical need for accumulation stems not solely from capitalist greed but from forces outside individual capitalists' wills:
Capitalists are essentially personified capital, sharing a miserliness for wealth, not merely motivated by personal gain.
The necessity for constant capital expansion arises from competitive pressures and the nature of capitalist production.
Competition creates external coercive laws pushing individual capitalists to continuously extend their capital through progressive accumulation.
Contradictions of Capitalist Growth:
Economic growth under capitalism is fraught with internal contradictions manifesting as crises.
Marx posits that harmonious, balanced growth is purely accidental due to the chaotic nature of commodity production (Capital, II, p. 495).
Key Stresses on Accumulation come from:
Surplus of Labor: An industrial reserve army is crucial for sustaining production expansion.
Mechanisms for increasing labor supply include stimulating population growth and migration.
Means of Production Availability: A market must exist providing sufficient machines and raw materials.
Marketplace Demand: If effective demand (need backed by the ability to pay) does not exist, accumulation falters.
III. Crises of Accumulation
Accumulation may meet barriers that can precipitate crises if left unchecked.
In advanced capitalist economies, labor supply, means of production, and market demand are all products of capitalist production.
This creates a tendency for capitalism to craft barriers against its own advancement.
Crises are endemic within capitalist accumulation:
Examined through phases of production, distribution, consumption, and reinvestment.
Marx describes the intricate relationship between production and consumption:
“Production is immediately consumption, and consumption immediately production” (Grundrisse, p. 93).
Crises arise manifesting as realization crises when overproduction occurs without market purchasers, leading to a contradiction where a mass of commodities has no buyers.
Overproduction is a relative concept, not tied to absolute human needs, but to purchasing power and market limits (Theories of Surplus Value, II, p. 506).
Forms of crisis:
Underconsumption or overproduction of capital (capital surplus) are symptoms of underlying overaccumulation (Theories of Surplus Value, II, pp. 497-9).
Factors such as chronic unemployment, capital surpluses, and lack of effective demand can trace back to the tendency to overaccumulate.
Crises contribute to enforcing order within the capitalist system, though they have tragic social ramifications:
Price devaluation, bankruptcies, rising economic concentration and political power, declining real wages, and unemployment.
Each crisis can lead to shifts in production dynamics toward higher planes, characterized by increased productivity, reduced labor costs, and mobilization of surplus capital into profitable avenues.
Fostering an expanding effective demand through
Physically organizing various productions and social activities to optimize several aspects of the economy.
Creating new needs and increasing population to sustain longer-term capital accumulation goals.
Geographical expansion to access new markets and resources.
IV. Transportation Relations and Spatial Integration
The movement of capital through circulation integrates value, while labor generates value (Grundrisse, p. 543).
Circulation consists of:
Physical movement of goods from production points to consumption sites and the implicit costs associated with this movement.
Each is critical to production processes:
Marx asserts that effective transportation systems significantly reduce realization costs and create more fluid markets (Capital, II, p. 150).
Capital necessitates overcoming spatial barriers:
Increased need for efficient transportation links to reduce circulation costs.
The imperative to accumulate drives innovations in transportation and communication technologies (Capital, I, p. 384).
Increased capacity to acquire resources leads to a deeper geographical expansion of production environments.
V. Fixed Capital and Geographical Structures
Capital becomes