class 6

Question 1

review Pomeranz thesis on the great divergence

Answer 1

1. Eurasian similarity until as late as 1750
2. Europe’s internal factors of development not sufficient to explain GD by 1800 (either insufficient on their own or not unique to Europe)
3. decisive factor = Europe’s overseas empires and new system of core-peripheral complementarity
4. empire enabled the British Industrial Revolution and Europe’s escape from the Malthusian trap (e.g. created new markets)

Question 2

last sentence of assigned reading

Answer 2

'’at our current state of knowledge, it is evident that, around 1800, capitalism in a form going beyond merchant capitalism and with systemic force was a European phenomenon, yet fully expressed only in northwester Europe, however much it had been simultaneously facilitated and codetermined by global linkages

• Kocka (2016)

Question 3

(different sort of capitalism)

Answer 3

Kocka doesn’t trade them as entirely separate: they require and build on each other

• capitalism in general
• plantation capitalism
• merchant capitalism
• finance capitalism
• etc.

Question 4

!! definition capitalism !!
Kocka

Answer 4

Definition capitalism (Kocka):

• capitalism is not commercial society, nor market economy
• merchant capitalism (c15-c18) -> industrial (c19)

Three characteristics:
1. decentralization: individual and collective actors have property rights enabling them to make economic decisions in a semi-autonomous and decentralized way
2. commodification: markets serve as main mechanisms of allocation and coordination; commodification of land, labor, and capital
3. accumulation: capital is invested in expectation of future gains (profit); sources of capital include credit, savings and income, uncertainty and risk, imperative of growth and expansion

= inheritive character of expansion, accumulation and growth

Question 5

(commodification)

Answer 5

putting a specific (monetary) value on something

commodification = commensurability

Question 6

Ingham definition capitalism

Answer 6

1. monetary system and bank credit
2. market exchange (competitive)
3. private enterprise production of commodities (matches with Kocka’s decentralization)

Question 7

two main conceptions of capitalism’s origins

Answer 7

logic of circulation = matches with what we’ve encountered so far in this course

• division of labor
• trade, commerce, increased circulation
• regional price differentials
• extra-economic means of profit (controlling trade routes, expanding trade networks etc.)

*these elements aren’t necessarily new with capitalism

logic of production = capitalism as a new form of organizing society, something without precedent

• social system based on novel property relations, producers separeted from means of production and compelled to sell their labor-power
• market is not merely an opportunity, but an imperative to which owners and non-owners (workers) are subjected
• owners compelled to increase labor productivity
• greater separation impersonal economic forces from personal political forces (eco. and political power apart of each other)
• internal development more important than external empire

!!main difference = logic of production doesn’t look at external factors

Question 8

logic of circulation

Answer 8

= way to understand capitalism

• division of labor
• trade, commerce, increased circulation
• regional price differentials
• extra-economic means of profit (controlling trade routes, expanding trade networks etc.)

*Kocka + California school neigt to this logic

Question 9

logic of production

Answer 9

• social system based on novel property relations, producers separeted from means of prodution and compelled to sell their labor-power
• market is not merely an opportunity, but an imperative to which owners and non-owners (workers) are subjected
• owners compelled to increase labor productivity
• greater separation impersonal economic forces from personal political forces (eco. and political power apart of each other)
• internal development more important than external empire

Question 10

general claims of the circulationists

Answer 10

• merchant capitalism is the earliest stage of capitalism + its origins lie outside of Europe = critique of eurocentrism
• ca 1500-1800: peak era of merchant capitalism, aka mercantile capitalism or commercial capitalim
• ca. 1800+ industrial capitalism

Question 11

mercantilism

Answer 11

early modern theory that trade generates wealth:

• pro positive trade balance
• pro state protectionism

Question 12

circulationists linking together trends

Answer 12

1. development of powerful territorial states in the core
2. European expansion : core-periphery, unfree labor
3. Rise of mercahnt capitalism & finance capitalism : banks, stock exchanges, joint-stock companies and corporations

all of these influence each other

e.g. rise of state debt -> reforms kingdoms taxation -> central banks + centralization of the state

Question 13

connection logic of circulation and the great divergence

Answer 13

GD begins with the rise of merchant capitalism and finance capitalism in Europe in the context of overseas empires

• traditional view = C15-C18
• revisionist view (e.g. Pomeranz): ~1800

Industrial Revolution in production occurred as a result of this prior revolution in circulation

Question 14

the origins of capitalism - logic of production

Answer 14

capitalism reorganized the social structure: creating new classes

• if it doesn’t reorganize the sphere of production, including social relations of production, then it’s not really capitalism
• merchant capitalism C15-C18 not capitalism proper: it was non-capitalist world commerce
• internal development of Europes most advanced regions crucial for understanding origins capitalism

capitalism began either with agrarian capitalism in C15-C16 or with industrial capitalism in C19

*industrialization c.1850 only in certain areas of Europe: where there were resources

Question 15

groups within logic of production

Answer 15

• classical political economists
• classical marxists
• political marxists (agrarian capitalism)

Question 16

classical political economists

Answer 16

• Adam Smith - Wealth of Nations
• Adrew Ure - factory system, thought human labor would dissapear

focus on division of labor (e.g. Smith’s pin factory description)

division of labor -> bigger production

economists wanted to advocate this division of labor + open trade (as free as possible)

= celebration of industrial capitalism

Question 17

classical marxism

Answer 17

critiqued elements/effects

• mass poverty, morally intolerable
• too many goods, declining prices -> more profitable to destroy goods than to transport for sale = crisis of overproduction (new with industrial capitalism)
  *famine often caused by overproduction or industrial techniques
• exponential growth population + many people dying
• transformation natural environment

Engels:
‘ father had a capital -> he has knowledge, describes slums as a manmade problem (industrial age forces working class to be packed together far away from farms (sources of food) leading them to have to buy them

Marx: criticized established religion and bourgeoisie

• subversive logic
• relied on Engels’ money

Question 18

classical marxist theory of revolution

Answer 18

= class struggle as motorforce of history

!!classical vision = no skipping of steps

ancient mode of production
revolutionary revision
feudal mode of production
revolutionary revision
capitalist mode of production
revolutionary transition (socialism)
communist mode of production

Question 19

what is class society

Marx vs others

Answer 19

Marxist view = not groups of people in a population, but an economic/structural category of the prevailing mode of production

• capital vs labor division runs through each of us (everyone has some level of capital in comparison with labour): you are a capitalist and a worker
• class distinctions go through individuals

Sociological/common view = working class vs middle class vs capitalist class

Question 20

'’original accumulation’’

Answer 20

Marx =

historical process of divorcing the producer from the means of production

it appears as primitive, because it forms the pre-history of capital

the expropriation of the agricultural producer, of the peasant, from the soil is the basis of the whole process

only in England has it the classic form

= about faith English Peasants

Question 21

political marxism

Answer 21

= emphasize the importance of agrarian capitalism in England (NOT: industrialization) as the origins of capitalism in general

• reject the commercialization model focused on merchants, trade and finance (has been along for too long: to general)
• early modern situation ‘non-capitalist commerce’
• associate capitalism with a systematic need to lower costs of production in order to prevail in price competition
• contend that this systematic imperative developed in English agricultrue before industrialization

Question 22

capitalism as market dependency
-Wood (political marxism)

Answer 22

Capitalism system with:

• profitable exchange
• where all economic actors are dependent on the market
• producers depend on the market for access to the means of production
• not integrated market (one market spread across = competition)
• fragmented market, prevents/limits competition (e.g. Atlantic triangular trade, Holland)

= distinct system of market dependence

Question 23

Holland
- circulationists vs productionists

Answer 23

Circulationists:

Holland most advanced merchant capitalist economy, so we must explain its ‘‘failed transition’’ to industrial capitalism

productionists:

Holland did not fail to transition to industrial capitalism, because it was not really capitalist in the first place

Question 24

bottomline/England

Answer 24

land divided: areas owned by no-one, by lord of the manor, by peasants, by church (glebe)

then

capitalism started in England: from a reorganization of English agriculture, esp. C14-15, extending into C18

• peasants/yeomen were dispossessed of common lands (enclosures), forced to sell their shit as tenant farmers (owned product, but had to pay rent) or be agrarian laborers
• English landowners were ‘demilitarized’ earlier than feudal lords elsewhere in Europe, focused on extractive force: pushed for higher labor productivity (started using market mechanisms to extract resources and labor)
• agrarian capitalism produced a large proletarian workforce that gradually moved into cities (would labor in factories)

*there was resistance to this process: missed revolution Gerrard Wistanley, True Levellers/diggers (common property), English Civil War (1642-1651) lead to parliamentary rule -> private property rights expanded
…Hill

Question 25

non-European contexts and inputs

Answer 25

scholars inspired by the logic of production approach have tried to combine it with logic of circulation approach

Agrarian capitalism in England was necessitated and made possible by extra-European factors:

1. Pax Mongolica: C13 increase in trade, black death spread, fuels feudal class conflict (peasant wars)
2. Ottoman empire-building checks power of Habsburgs, makes more space for northwestern states to dev.
3. colonalism and slavery in Americas essential for raw materials that drove dev.of industrial capitalism and capitalist world system

Question 26

the rise of steam power / Malm

Answer 26

flow vs stock

• flow: water and wind power
• stock: steam power (coal)

decreasing amount of land in England (Jeremy Black + Pomeranz) + decreasing amount of wood

Pomeranz claims: coal is important, but western Europes priviliged access to colonial land was more important

Malm: fossil capital: origins climate change in Britain
*has a logic of ….

• neither shortage of wood, nor abundance of coal, nor invention steam engines = not sufficient to explain Britain’s industry to fossil fuels
• renewable energy sources (flows) was determined by conditions of space and time, had to be used on the spot
• stocks: seemed to exist outside the landscape, could be stored and saved, appears to exist outside of time
  -transition flow -> stock: urbanization and population growth (coal could be transported into the city no matter the landscape, e.g. no need to be close to a forest), river management demanded cooperation, steam power had advantage of going on day and night
• water was cheaper, efficient etc., still they chose steam power: inability and unwillingness to cooperate and coordinate to use it properly (expected disruption of flow if everyone used water power)

Question 27

logic of production connection to great divergence

Answer 27

logic of production: GD occured chiefly because of internal processes of dev. in Europe:

• transition to agrarian capitalism in England C14-C15 (Political Marxists)
• British Industrial Revolution and spread of industrial capitalism across western Europe late C18-C19 (classical political economy, classical Marxism)
• all this facilitated, and was facilitated by expansion of Europe’s overseas empires

!he prefers logic of production, but for this course it makes more sense to synthesize them: understand how balance of internal eco. dev. and external processes of expansion cooperate