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Late capitalism, late-stage capitalism, or end-stage capitalism is a term first used in print by German economist Werner Sombart around the turn of the 20th century. In the late 2010s, the term began to be used in the
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and
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to refer to perceived absurdities, contradictions, crises, injustices, inequality, and exploitation created by modern business development. Later capitalism refers to the historical epoch since 1940, including the post–World War II economic expansion called the "golden age of capitalism". The expression already existed for a long time in
continental Europe Continental Europe or mainland Europe is the contiguous continent of Europe, excluding its surrounding islands. It can also be referred to ambiguously as the European continent, – which can conversely mean the whole of Europe – and, by ...
, before it gained popularity in the English-speaking world through the English translation of Ernest Mandel's book ''Late Capitalism'', published in 1975. The German original edition of Mandel's work was subtitled in "an attempt at an explanation", meaning that Mandel tried to provide an orthodox Marxist explanation of the post-war epoch in terms of
Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...
's theory of the capitalist mode of production. Mandel suggested that important qualitative changes occurred within the capitalist system during and after World War II and that there are limits to capitalist development.


History of the term

The term "late capitalism" (Spätkapitalismus) was first used by Werner Sombart in his magnum opus ''Der Moderne Kapitalismus'', which was published from 1902 through 1927, and subsequent writings; Sombart divided capitalism into different stages: (1) proto-capitalist society from the early middle ages up to 1500 AD, (2) early capitalism in 1500–1800, (3) the heyday of capitalism (''Hochkapitalismus'') from 1800 to the first World War, and (4) late capitalism since then. Sombart's work was never translated into English, but historians sometimes do refer to ''late bourgeois society'' in contrast to ''early bourgeois society'' in the 17th and 18th century, or ''classical bourgeois society'' in the 19th and early 20th century.
Vladimir Lenin Vladimir Ilyich Ulyanov. ( 1870 – 21 January 1924), better known as Vladimir Lenin,. was a Russian revolutionary, politician, and political theorist. He served as the first and founding head of government of Soviet Russia from 1917 to 1 ...
famously declared that there are no "absolutely hopeless situations" for capitalism. The
Communist International The Communist International (Comintern), also known as the Third International, was a Soviet-controlled international organization founded in 1919 that advocated world communism. The Comintern resolved at its Second Congress to "struggle by ...
stated that with the first World War, a new world epoch of wars and revolutions had opened, and it defined state monopoly capitalism as the highest and final stage of capitalism. The term ''late capitalism'' began to be used by socialists in continental Europe towards the end of the 1930s and in the 1940s, when many economists believed capitalism was doomed. At the end of
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, many economists, including
Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian-born political economist. He served briefly as Finance Minister of German-Austria in 1919. In 1932, he emigrated to the United States to become a professor at H ...
and
Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he " ...
, believed the end of capitalism could be near, in that the economic problems might be insurmountable. The term was used in the 1960s in Germany and Austria, by Western Marxists writing in the tradition of the
Frankfurt School The Frankfurt School (german: Frankfurter Schule) is a school of social theory and critical philosophy associated with the Institute for Social Research, at Goethe University Frankfurt in 1929. Founded in the Weimar Republic (1918–1933), dur ...
and
Austromarxism Austromarxism (also stylised as Austro-Marxism) was a Marxist theoretical current, led by Victor Adler, Otto Bauer, Karl Renner, Max Adler and Rudolf Hilferding, members of the Social Democratic Workers' Party of Austria in Austria-Hungary ...
. Leo Michielsen and Andre Gorz popularized the term "neo-capitalism" in France and Belgium, with new analyses of the new post-war capitalism.
Jacques Derrida Jacques Derrida (; ; born Jackie Élie Derrida; See also . 15 July 1930 – 9 October 2004) was an Algerian-born French philosopher. He developed the philosophy of deconstruction, which he utilized in numerous texts, and which was developed th ...
preferred '' neo-capitalism'' to ''post-'' or ''late-capitalism''. Theodor Adorno preferred "late capitalism" over "industrial society," which was the theme of the 16th Congress of German Sociologists in 1968. In 1971, Leo Kofler published a book called ''Technologische Rationalität im Spätkapitalismus'' (Technological Rationality in Late Capitalism). Claus Offe published his essay "Spätkapitalismus – Versuch einer Begriffsbestimmung" (Late capitalism – an attempt at a conceptual definition) in 1972. In 1973,
Jürgen Habermas Jürgen Habermas (, ; ; born 18 June 1929) is a German social theorist in the tradition of critical theory and pragmatism. His work addresses communicative rationality and the public sphere. Associated with the Frankfurt School, Habermas's wo ...
published his ''Legitimationsprobleme im Spätkapitalismus'' (Legitimacy problems in late capitalism). In 1975, Ernest Mandel published his PhD thesis ''Late Capitalism'' in English at New Left Books.
Herbert Marcuse Herbert Marcuse (; ; July 19, 1898 – July 29, 1979) was a German-American philosopher, social critic, and political theorist, associated with the Frankfurt School of critical theory. Born in Berlin, Marcuse studied at the Humboldt University ...
also accepted the term.
Immanuel Wallerstein Immanuel Maurice Wallerstein (; September 28, 1930 – August 31, 2019) was an American sociologist and economic historian. He is perhaps best known for his development of the general approach in sociology which led to the emergence of his wo ...
believed that capitalism was in the process of being replaced by another world system. The American literary critic and cultural theorist Frederic Jameson thought Rudolf Hilferding's term ''the latest stage of capitalism'' (''jüngster Kapitalismus'') perhaps more prudent and less prophetic-sounding but Jameson often used "late capitalism" in his writings. Hegel's theme of "the end of history" was rekindled by Kojève in his ''Introduction to the Reading of Hegel''. The " end of history" is discussed by Francis Fukuyama in the sense that
liberal democracy Liberal democracy is the combination of a liberal political ideology that operates under an indirect democratic form of government. It is characterized by elections between multiple distinct political parties, a separation of powers into ...
is the ultimate form of society, which cannot be surpassed by anything that is superior to it, because there does not and cannot exist anything superior. In modern usage, late capitalism often refers to a new mix of high-tech advances, the concentration of (speculative) financial capital, post-Fordism, and a growing income inequality.


Ernest Mandel

According to the
Marxist Marxism is a left-wing to far-left method of socioeconomic analysis that uses a materialist interpretation of historical development, better known as historical materialism, to understand class relations and social conflict and a dialecti ...
economist Ernest Mandel, who popularised the term with his 1972 PhD dissertation, late-stage capitalism will be dominated by the machinations—or perhaps better, fluidities—of
financial capital Financial capital (also simply known as capital or equity in finance, accounting and economics) is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provi ...
; and also by the increasing
commodification Within a capitalist economic system, commodification is the transformation of things such as goods, services, ideas, nature, personal information, people or animals into objects of trade or commodities.For animals"United Nations Commodity Tra ...
and
industrialisation Industrialisation ( alternatively spelled industrialization) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive re-organisation of an econo ...
of ever more inclusive sectors of human life. Mandel believed that " r from representing a 'post-industrial society', late capitalism ..constitutes ''generalized universal industrialization'' for the first time in history". Up to the mid-1960s, Mandel preferred to use the term "neo-capitalism", which was most often used by intellectuals in Belgium and France around that time. This term drew attention to new characterististics of capitalism, but at the time ultra-leftist Marxists objected to it, because, according to them, it might suggest that capitalism was no longer capitalism, and it might lead to reformist errors rather than the overthrow of capitalism. In his work ''Late Capitalism'', Mandel distinguished three periods in the development of the capitalist mode of production. *''Freely competitive capitalist production'', roughly from 1700 to 1870, through the growth of industrial capital in domestic markets. *The phase of ''monopoly capitalism'', roughly from 1870 to 1940, is characterized by the
imperialist Imperialism is the state policy, practice, or advocacy of extending power and dominion, especially by direct territorial acquisition or by gaining political and economic control of other areas, often through employing hard power ( economic and ...
competition for international markets, and the exploitation of colonial territories. *The epoch of ''late capitalism'' emerging out of the
Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposi ...
, which has as its dominant features the
multinational corporation A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
, globalized markets and labor,
mass consumption Consumerism is a social and economic order that encourages the acquisition of goods and services in ever-increasing amounts. With the Industrial Revolution, but particularly in the 20th century, mass production led to overproduction—the su ...
, and the space of liquid multinational flows of capital. In the tradition of the
orthodox Marxists Orthodox Marxism is the body of Marxist thought that emerged after the death of Karl Marx (1818–1883) and which became the official philosophy of the majority of the socialist movement as represented in the Second International until the Fir ...
, Mandel tried to characterize the nature of the modern epoch as a whole, with reference to the main laws of motion of capitalism specified by Marx. Mandel's aim was to explain the unexpected revival of capitalism after World War II, contrary to leftist prognostications, and the long economic boom which showed the fastest economic growth ever seen in human history. His work has produced a new interest in the theory of long waves in economic development.


Fredric Jameson

Fredric Jameson borrowed Mandel's vision as a basis for his widely cited '' Postmodernism, or, the Cultural Logic of Late Capitalism.'' Jameson's
postmodernity Postmodernity (post-modernity or the postmodern condition) is the economic or cultural state or condition of society which is said to exist ''after'' modernity. Some schools of thought hold that modernity ended in the late 20th century – in the ...
involves a new mode of cultural production (developments in literature, film, fine art, video, social theory, etc.) which differs markedly from the preceding era of
Modernism Modernism is both a philosophical and arts movement that arose from broad transformations in Western society during the late 19th and early 20th centuries. The movement reflected a desire for the creation of new forms of art, philosophy, an ...
, particularly in its treatment of subject position, temporality and narrative. In the modernist era, the dominant ideology was that society could be re-engineered on the basis of scientific and technical knowledge, and on the basis of a popular consensus about the meaning of progress. From the second half of the 20th century, however, modernism was gradually eclipsed by postmodernism, which is skeptical about social engineering and features a lack of consensus about the meaning of progress. In the wake of rapid technological and social change, all the old certainties have broken down. This begins to destabilize every part of life, making almost everything malleable, changeable, transient and impermanent. Jameson argues that "every position on postmodernism today — whether apologia or stigmatization — is also...''necessarily'' an implicitly or explicitly political stance on the nature of multinational capitalism today". A section of Jameson's analysis has been reproduced on the
Marxists Internet Archive Marxists Internet Archive (also known as MIA or Marxists.org) is a non-profit online encyclopedia that hosts a multilingual library (created in 1990) of the works of communist, anarchist, and socialist writers, such as Karl Marx, Friedrich En ...
. Jameson regards the late capitalist stage as a new and previously unparalleled development with a global reach — whether defined as a multinational or informational capitalism. At the same time, late capitalism diverges from Marx's prognosis for the final stage of capitalism.


Modern usage of the phrase and further evolution

According to a 2017 article in ''
The Atlantic ''The Atlantic'' is an American magazine and multi-platform publisher. It features articles in the fields of politics, foreign affairs, business and the economy, culture and the arts, technology, and science. It was founded in 1857 in Boston, ...
'', the term "late capitalism" is again in vogue to describe modern business culture, although with a semantic change or an ironic twist. "Late capitalism" has become a catch-all term for various phenomena that express capitalism's distortions of human life and psyche, which is often used in critique and satire. This usage also conveys a sense that contemporary capitalism cannot go on like it does forever, because the problems created by business are getting too large and unmanageable. The phrase “late stage capitalism” is used commonly as a critique of the allegedly fascistic qualities that emerge in the later stages of capitalism. Capitalism to many may seem to be free of this exploitation if not taken to the extremes of “late capitalism”. A competing viewpoint is that “Capitalism, in its orthodoxy, is a system that relies on authoritative, controlling, and exploitative relationships, most notably between that of capitalists and workers”, and that this is not something that emerges out of a devolving system but rather is present in the framework of the system itself.


In popular culture

A character in Thomas Pynchon's 2013 novel '' Bleeding Edge'' states "late capitalism is a pyramid racket on a global scale... getting the suckers to believe it's all gonna go on forever." Cyberpunk films such as ''Blade Runner'' (1982) explore potential consequences of late stage capitalism.Powell, H. (2022, July). Toward a State of Burnout? Project Muse


See also


References


Further reading

* Jacques Derrida, '' Specters of Marx'' (1994)
Chris Harman : Mandel’s Late Capitalism (July 1978)
* Fredric Jameson, "Culture and Finance Capitalism" ''Critical Inquiry'' 24 (1997) pp. 246–65 *

* Immanuel Wallerstein. The Essential Wallerstein (New York: The New Press, 2000), World-Systems Analysis: An Introduction (Durham: Duke University Press, 2004).


External links


Youtube late capitalism FAQ video
by ''
The Atlantic ''The Atlantic'' is an American magazine and multi-platform publisher. It features articles in the fields of politics, foreign affairs, business and the economy, culture and the arts, technology, and science. It was founded in 1857 in Boston, ...
'' {{DEFAULTSORT:Late Capitalism Capitalism Economic ideologies Marxian economics