Under Imperialism Finance Capital Attains Supremacy

Monday, February 8, 2010

From the violent forms this process is taking, the unbearable burden being put on the shoulders of the world peoples and the consequent contradictions that all this is bringing forth it can be definitely said that imperialism will be defeated much before such an outcome. This process of extension of imperialist monopoly has led to two world wars and numerous small and big wars. In the meantime about one-third of the world peoples liberated themselves from the imperialist yoke and become part of the world socialist system. The anti-imperialist struggles and resistance of the freedom-loving people of the world is an important counteracting factor of the inherent laws of imperialism which work as tendencies.

Today, when the world proletarian revolution has met with defeat, albeit temporary, these tendencies have received a fillip and the process of monopolization is going ahead with leaps and bounds. This process is taking place through both peaceful and violent means and bringing untold sufferings to the world peoples. The way the whole process is getting entangled in insoluble contradictions it can be definitely said that we will go through another round of revolutions and imperialism will have to retreat and face defeat. So let us now examine this process and see how world capitalism has led us to this situation which we are today calling globalization.

Analyzing the laws of motion of capital Marx and Engles showed how this leads to the development of credit and how this socializes the accumulation process and how it facilitates the investment of capital among the different branches of production and how it gains independence of the actual process of production. With this rises the possibility that the possessors of vast amounts of money capital may lend their amounts to the industrial or productive capitalist and live without doing anything at all.

This process logically leads to the development of a financial oligarchy which lives on interest. This process of socialization of capital means that vast amounts of money capital are available which can accelerate the process of reproduction of capital. The capitalist does not have to wait till the commodities produced by him are sold on the market to renew the production process. This forces the pace of production and accumulation. This accelerated development and expansion of production leads to an imbalance between the expansion of production and consumption, the crisis of overproduction gets aggravated and in course of time capitalists feel the need for regulation of production.

The big capitalists try to regulate production in many ways, they come to various types of mutual agreements and come up with different types of alliances, and they also merge to form trusts. The process of concentration and centralization of capitals moves apace. All the above mentioned process let to the birth of monopoly capital at the end of the 19th century and the beginning of the 20th century and this was the beginning of imperialism which is also called the highest stage of capitalism. Under imperialism finance capital attains supremacy which Lenin describes as monopoly industrial capital merged with bank capital. With this, the export of capital gains the upper hand instead of export of commodities. Finance capital starts its world domination and divides up the globe for the sources of raw materials and export of capital.

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