Capitalism as an Economic System

What is Capitalism? Sometimes defined as “the free market” as opposed to the centrally controlled economy of the Socialist states of USSR, Soviet-bloc Eastern Europe, China, Cuba; not by Graeber. See p. 260 Markets = c-m-c vs. Capitalism = m-c-m Money predates capitalism; capitalism is dependent on money but did not create it Capitalism is concerned with making money grow; in order to do so, capitalists relied on state support to create market monopolies

“Age of the Great Capitalist Empires” Europe’s conquest of South and Southeast Asia, Africa, and Latin America Done by merchants in conjunction with political authorities, p. 346 Merchants relied on huge networks of credit and debt, p. 347 Relied on enslavement and violence, p. 315

“Age of the Great Capitalist Empires” The difference between capitalism and markets: Logic of money granted autonomy, p Capitalism relied on expansion and appropriation of the wealth of other economies, including ones built on the human economy and reciprocity How much money is enough? Abhi Ajit’s question

Whither Capitalism? Expectations of growth built into our systems of planning: interest Desire for unlimited growth has ecological and social implications However, Marxist predictions of the end of capitalism at least 100 years old Deepwater Horizon on fire in the Gulf of Mexico, April 2010

Debt: Public and Personal Attaining the dream of “the good life” 2008 financial crisis: dream of homeownership, mortgage securities, banks overleveraged (promised more than they had) Capitalism can’t fulfill the contract for everyone, p. 373, p. 374

A Jubilee? Questions by Angelique Nieves and Amanda Brickner The rationale, from Jubilee USA: From , Africa received some $540 billion in loans and paid back $550 billion in principal and interest. Yet Africa remains today with a debt stock of $295 billion. The conditions that come with new loans and debt relief hurt the poor and basic services Much of the debt is a result of "bad faith" lending including: The practice of pushing loans on developing nations because banks had too much money and had to lend it Knowingly lending to corrupt governments for political purposes

Some debt relief for African countries in the 2010s Partly because of Argentina’s default in 2002

US National Debt US Federal Reserve kept afloat by money borrowed from other countries (particularly China) through the purchase of US treasury bonds Helped that dollar is the world’s currency (in particular, necessary for buying oil) Possible that at some point other countries will stop buying US treasury bonds, deciding that the debt load is too high (and therefore too risky)