John Hobson Flashcards
What was the Scramble for Africa?
The major European powers rapidly colonised Africa in an effort to gain control of resources and expand political influence. In 1870, 10% of Africa was under European control – this had increased to 90% by 1914.
What was the Boer War?
A war fought between the British Empire and the Dutch-Affiliated Boer Republics over control of South Africa. Lasting from 1899-1902, its duration and brutality rocked the British Empire’s projection of strength and a ‘civilising mission’
Who were the Robber Barons?
Wealthy American industrialists of the 19th century. The term captured their exploitative business practices, monopolistic tendencies, and political influence. Characterised the ‘Gilded Age’ (1870-90) of extreme wealth inequality
Who were the Fabian Society?
A British socialist organisation formed in 1900. Committed to the principles of ‘radicalism’ – an anti-imperial movement that advocated for social welfare and political reform. Highly influential on the founding of the Labour Party
What did Hobson believe was the economic logic behind imperialism?
Hobson believed that it was wealthy businessmen and industrialists that led the drive for Imperialism (and reaped its benefits)
By rapidly expanding the size of their corporations, such firms were able to create ‘super profits’ which they can find no meaningful use for at home
Imperialism offered new markets for their products and outlets for investment
What did Hobson believe was the real economic problem that led to imperialism?
Underconsumption
Hobson rubbished the imperialist claim that there was no demand at home
He claimed that the problem was not a lack of demand, but an unequal distribution of income that meant such demands could not be satisfied
Most didn’t have enough income to meet their demands, and industrialists had more than they could ever spend – thus, underconsumption ensued
What did Hobson see as the solution to problems of underconsumption?
Social Reform
If incomes were distributed so that all could meet their demands, an economy would never experience overproduction and have no need for Imperialism
Hobson proposed that such redistribution could occur through giving workers higher wages, or putting money back into the community via business taxes
How was Hobson responding to Say’s Law?
In 1803, French liberal economist Jean-Baptiste Say developed the principle that ‘supply creates its own demand’ – an economy will ultimately consume all that it produces.
Through the 19th century, this argument was accepted and used to support ‘laissez-faire’ policies.
Hobson challenged its conclusions by observing how income inequality leads to underconsumption
How did Hobson influence socialism/communism?
Although largely uncredited throughout his lifetime, Hobson was a major influence on left-wing figures, such as Keynes, for the first half of the 20th century.
Vladimir Lenin adopted Hobson’s claim of Imperialism as a natural consequence of capitalism to justify a transition to socialism
