- 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.


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

Follow Ups:

The Debating Room Post a Followup