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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The new and expanding salaried classes i. As noted above, Hilferding suggests that the connections forged by the concentration of finance capital forces commercial capital hilferdin a subservient position. So in both theory and practice, everybody becomes reactionary except the proletariat. He was seeking to expand the ideas opened up by Capital to encompass important phenomena such as the banking sector, cartels, and imperialism. Through the development of banks and their ever-greater interconnection with industrial capital, something happens which is quite the opposite of the capitwl marketization involved in speculative activity: And ultimately, it produces a change in the attitude of the capitalist class towards state power.

Finance Capital

Chapter 25, The proletariat and imperialism. 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?

Rudolf Hilferding Finance Capital It seems, instead, that the dominance of the US model of finance- which is an fapital marketised system based on speculation rather than commitment- has prevailed in the neoliberal decades.

Hilferding was a proponent of the “economic” reading of Karl Marx identifying with the ” Austro-Marxian ” group.

And even more worryingly from his perspective as a Marxist, this financd border expansion- because it bolsters national capitals and could therefore raise standards for their employees- obscures antagonisms between proletariat and bourgeoisie. 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.


Rudolf Hilferding, Finance Capital ()

Nonetheless, in some ways he was quite prescient, and he raises some important ideas that the TEMS team need to think about. This is an extract from Rudolf Hilferding’s Das Finanzkapital. Her defeat enhanced the power of the landed gentry, and of commercial, bank, and hilfferding 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.

It was not normative but self-interested, and consequently, in places like India where there was some doubt as to whether British sales could out-compete local industry, the liberals conveniently took on a conspicuously more proactive imperialist policy.

He observes with a cold and steady eye the medley of peoples and sees his finabce nation standing over all of them. His appointment was also meant to raise the share of marxism in the editing. Lutz Graf Schwerin von Krosigk.


Banking and industrial capital develop a shared phobia of the proletariat. Later on, however, finwnce suggests that monopolies and cartels are more likely to survive depressions and crises, while smaller businesses go to the wall.

Banks are also able caiptal mitigate crises to some degree by regulating the money supply. A Study in the Origins of the State Party.

First Stresemann cabinet — 13 August to 3 October Verdict of Three Decades: Help Center Find new research papers in: From Wikipedia, the free encyclopedia. Hilferding also participated in the “Crises Debate” — disputing Marx’s theory of the instability and eventual breakdown of capitalism on the basis that the concentration of capital is actually stabilizing.

On pagehe suggests that during depressions cartels become harder to organise, and may break apart as members turn on each other. What the continental bourgeoisie needed above all was to overcome the plethora of petty states and to substitute for the impotence of these petty states the supreme power of a unified state. The need to create a national state was bound to make the bourgeoisie from the very beginning a champion of the state.


Thus, in cartels we can see the development of trade wars, as countries escalate competitive tariffs and subsidies. There are a lot of interesting historical asides here.

Eternal justice is a beautiful dream, but morality builds no railways, not even at home. Liberal free trade-ism can therefore be attacked from capiral number of angles, according to Hilferding.

Liberalism opposed international power politics, and only wanted to secure its own rule against the old forces of aristocracy and bureaucracy by granting them the least possible finaance to hilfegding power, but finance capital demands unlimited power politics, and this would be the case even if military and naval expenditures did not directly assure the most powerful capitalist groups of important markets, which provide in most cases monopolistic profits.

On the other hand, universal military service, which arms the mass of the people, was bound to persuade the bourgeoisie very quickly that if the army were not to become a menace to its rule, hikferding strictly hierarchical organization was required, based upon an exclusive officers’ corps which would be a pliable instrument of the state.

Fixed capital, because it represents a long-term investment, does not flow back to the capitalist straight away. But in order to achieve these ends, and to maintain and enhance its predominant position, it needs the state which can guarantee its domestic market through a protective tariff policy and facilitate the conquest of foreign markets.

The format and style of the book also strongly channel Marx. Is this a swipe at Vince Cable, years in advance? Hilferding’s wife, Margarete, died in the Theresienstadt concentration camp in In particular, according to Hilferding, societies that had not reached the level of economic maturity anticipated by Marx as making them “ripe” for socialism could be opened to socialist possibilities.

University yilferding Illinois Press.