Finance Capital: Rudolf Hilferding: the way Marx expected, Hilferding’s Finance Capital () pointed to the role of banking and finance, arguing that the. Marxian and Non-Marxian Foundations of Rudolf Hilferdings Finance Capital*. Jan Greitens. Abstract: Finance Capital, written in by Rudolf Hilferding. Lenin’s concept of finance capital is essentially a derivative from. Hilferding’s, which is a more complex concept. This is not objectionable in itself but critics of.

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He goes considerably further than Marx himself, in exploring very specifically how the internal dynamics of capital accumulation lead to imperial and colonial conquest. The demand for an expansionist policy revolutionizes the whole world view of the bourgeoisie, which ceases to be peace-loving and humanitarian.

Finance Capital | work by Hilferding |

When World War I broke out inHilferding was one of the few social democrats who from the very start opposed the SPD’s Burgfriedenspolitik [4] and the party’s support for the German war effort, [1] including its vote for war loans.

Perhaps more interestingly for our purposes, he argues that fixed capital investments impose commitments and pressures that can be very serious when prices are eventually forced down in a recession. Thus, in cartels we can see the development of trade wars, as countries escalate competitive tariffs and subsidies.

And ultimately, it produces a change in the attitude of the capitalist class towards state power. In JulyBebel recommended Hilferding for this job to the party executive, which agreed to give it to him for six months.

Rudolf Hilferding

Even before his school leaving examinations, in he joined a group of Vienna students that weekly discussed socialist literature and later formed with young university teachers the student-organization Freie Vereinigung Sozialistischer Studentenwhose chairman was Max Adler.

Cartels and monopolies, by inflating their own profits, impede competition and solidify unequal profit rates across industries. Inhe acquired German citizenship [14] and inhe was appointed to the Reich Economic Council. For Hilferding, the proletariat is the only class that can be opposed to imperialism. As noted above, Hilferding suggests that the connections forged by the concentration of finance capital forces commercial capital into a subservient position.

Giant firms have expanded not just within, but across industries, and they have used mechanisms such as intellectual property rights to create new frontiers of monopoly.


This is a possible example of over-optimism of the will. A Contribution to the Critique of Political Economy. The proportion of income financial companies receive from fees as opposed to interest has expanded greatly in the last thirty years, which may be taken as evidence of a growing rentier logic on their part Guillen, In he fled into exile, living in Zurich and then Paris, where he died in custody of the Gestapo in It is only natural that the liberal principle should have been realized first in England where it was championed by a bourgeoisie committed to free trade which had to appeal to the power of the state only for short periods of time in its conflict with the bilferding.

One contemporary Marxist who has looked quite closely at Hilferding is Costas Lapavitsas.

Help Center Find new research papers in: The former is a cartel which does restrict competition. Capital becomes the conqueror of the world, and with every new country that it conquers there are new frontiers to be crossed.

Since the subjection of foreign nations takes place by force – that is, in a perfectly natural way – it appears to the ruling nation that this domination is due to some special natural qualities, in short to hilderding racial characteristics. Rudolf Hilferding Finance Capital He begins with a critical discussion of liberal thought on free trade.

University of Illinois Press. Indeed, how could the liberal demand for the restriction of state power be put into effect by a bourgeoisie which, in economic terms, needed the state as the most powerful lever of its development and for which it was a matter not of abolishing the state, but of transforming it from an obstacle into a vehicle of its own development?

The modern state arose as a realization of the aspiration of nations capiital unity. Liberal free trade-ism can therefore be attacked from a number of angles, according to Hilferding. In this sense, the stock exchange is a mechanism of totalizing marketization. Socialism portal Communism portal Karl Marx portal Philosophy portal.

Her defeat enhanced the power of the landed gentry, and of commercial, bank, and colonial capital, in England, and along with it the power of the state over industrial capital, thus delaying the definitive accession of English industrial capital to a position of dominance and the triumph of free trade.

In fact, the SPD leadership opposed socialization at this point since the armisticedemobilisation of the army and feeding the German people seemed more pressing issues at the time. It also gives rise to the development of a special market for fictitious capital- the stock exchange. It suggests that the nature of crises changes over time, as cartels develop.


Economic and Philosophic Manuscripts of The latter face disaster if an investment makes lower than average profits in the short term. This ideology, however, is completely opposed to that of liberalism.

Hilferding wrote articles in the Freiheit and made suggestions how they should be implemented, [37] which were sharply criticized by Lenin. This project looks at the introduction of price- based competition in four sectors in five European countries, and is led by Professor Ian Greer at the University of Greenwich.

If liberalism was thus unable to carry out its political programme in countries such as Germany, Italy and Austria, its efforts were also circumscribed in France, where the French bourgeoisie could not dispense with the help of the state in matters of commercial policy. Thus the needs of finance capital found various ideological elements to hand which could easily be used for creating a new ideology in harmony with its own interests.

More fundamentally for TEMS, he is also suggesting that as capitalism develops marketization and the regulatory prominence of the price mechanism diminishes- which seems to run counter to some of our guiding assumptions. In this sense, they exacerbate the disproportionalities that tend capitalism towards crisis see Capital Volume II.

Enter the email address you signed up with and we’ll email you a reset link. First Stresemann cabinet — 13 August to 3 October The stock exchange depends on the ability of capital to exit certain branches of production and rapidly move elsewhere.

The former, because it is simply exchanged between capitalists, has no effect on the rate of interest. And even more worryingly from his perspective as a Marxist, this cross border expansion- because it bolsters national capitals and could therefore raise standards for their employees- obscures antagonisms between proletariat and bourgeoisie. The mobilization of capital.