- Capitalism and Alternatives -

Don't let Wired magazine make a fool of you

Posted by: Barry Stoller on February 11, 19100 at 00:54:10:

In Reply to: The old theories are not sufficient nor beautiful slogans posted by Baktash on February 09, 19100 at 11:37:32:

: It is true that monopoly is a striking tendency of modern capitalism

: But I think that an opposite anti-monopoly tendency is present in this system too:

: Appearing of small bussinesses specially in new enterprises.

: I think cilicon vally is a good example of appearing

: new companies with small amounts of capital every day.

Sorry, you're either taking historical materialism too mechanistically or capitalist propaganda too seriously.

Rosa Luxenburg:


According to Marxist theory, small companies play the role of pioneers of technical revolution in the general course of capitalist development.(1)


For example, big capital leaves start-ups alone to innovate. Only when the start-ups develop something worthwhile for big capital, then big capital buys them out (friendly or hostile merger). In this way, big capital saves investment costs on R&D (the start-ups that fail to innovate are left to perish) while only buying what has been PROVEN to be of use to capital.

Capital has ALWAYS done this. It's very cost-effective.

All this said, the RELATIVE centralization of capital continues unabated, unmatched since the 1920s.
_______________


Note:

1. Luxenburg, 'Social Reform or Revolution?,' Selected Political Writings, Monthly REview Press 1971, p. 70.



Follow Ups:

The Debating Room Post a Followup