Is Capitalism collapsing?

An historical analysis of Crises, Contradictions, Counter-tendencies and the Devastating effects of

Capitalism
Abstract

Capitalism is destroying the hearth and human life. It is responsible of devastating crises and
a large amount of contradictions in economy, society and politics. Despite the technological
revolution of contemporary capitalism, expanded as a reaction of the oil crisis of 1973, it is
still unsustainable as a mode of production. Moreover, several attempts to cure capitalism
lacunae have failed. Notwithstanding such a miserable reality, there are still many advocates of
capitalism who cover capitalism’s failures under the mask of ideology. I shall argue that the
availability of natural resources are decreasing dramatically, and that the current world life style
has become absurd. Furthermore, I suppose that the working conditions have been changing
for the worse, in spite of the technological development of the past forty years. In addition, I
believe that the drawbacks of the measures to save capitalism have greatly outweighed the
benefits. Finally, I think that there is an urgent need of a critique of political economy or, said
differently, a strong need to criticise whoever defends capitalism, regardless its form.

Background and Significance

After the end of the Golden Age (1945-1973), capitalism had to face the crises that come
from an economy prevalently based on intellectual work. It entered the era that has been called
in various ways, ‘crisis decades’ (Hobsbawm 1995), ‘post-Fordism’ (Jessop 2002), ‘the forth
industrial revolution’ (Schwab 2017) or ‘the second machine age’ (Brynjolfsson and McAfee
2014). However, ancient contradictions knocked violently at the door (Harvey 2014 and
Kliman 2011). Despite the State intervention to alleviate crisis and the formulas of the
mainstream political thought, the contradictions of capitalism are more alive than ever, and
the crisis even deeper and broader. Its measures cannot change what is physiological in the
capitalistic mode of production, cannot change its internal contradictory development laws.
Indeed, as a side effect, it amplifies them (Kliman 2011). The amplifications affect society and
nature in a radical and often irreversible way. Yet, the reaction of political discourse or
economic theories are never late in covering these contradictions under the mask of ideology.

The study of contradictions, crises and the counter-tendencies could help to tackle the current
state of society and economy. I shall investigate logical, political, economic and historical roots in
order to form a new radical perspective about both theories and practice of capitalism.
Therefore, I would focus mainly on four points. First, a formal analysis at a global level of the
history of capitalism from 1973 oil crisis to the 2007-9 financial crisis. Second, the
development and the role of the knowledge economy. Third, the critique of economic and
politic ideology. Fourth, the outcomes of capitalism to social and environment justice. This
can provide a radical approach of the subject, which will allow us to elaborate some
recommendations drawing on the experience of the past.

1
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
 Is Capitalism collapsing?
An historical analysis of Crises, Contradictions, Counter-tendencies and the Devastating effects of Capitalism

Literature review

Crises of capitalism are structural; they are consequences of its laws of development. However,
many scholars and intellectuals applied themselves in order to guarantee a survival of
capitalism. They argue that, in order to overcome a crisis, capitalism must ensure a certain
degree of accumulation and have specific counter-tendencies. Among the latter, the most
ambiguous and most debated counter-tendency to a crisis is the State. Keynes (1936) argued
that capitalism through the State manages to ‘overcome’ crises and maintain its milieu (private
property of the means of production and the division of labour). Regulation Theory (Aglietta
1979 and Boyer-Saillard 2012) and Althusser (2014) tell us that the limits of accumulation and
crisis are maintained through the State. Esping-Andersen (1990) suggests the 'pure' forms of
the (Welfare) State that has as its objectives equality of opportunity, equitable distribution of wealth,
and public responsibility for those of the minimal provision for a good life. Jessop (2002) shows how the
(Welfare) State intervenes in different stages of the history of capitalism, and how it maintains
an 'order' in the era of ‘post-Fordism’. Furthermore, the work of Ferragina et al. (2014) and
Duménil-Lévy (2004) clearly prove the 'outcomes' of State activity and the ‘renaissance of
capitalism’.

However, there are some gaps and limits in these theories, as they are not concerned by the
socio-economic and ecological degradation brought about by capitalism nor the further
contradiction of the capitalism in its mission to improve today’s critical situation. Until now,
only a few attempts have been showing that 'every step forward in alleviating economic crisis
equals socially and environmentally to two steps backwards'. A phenomenon I would call
‘recoil of capitalism’. O'Connor (1998) proves the fundamental contradiction between nature
(ecosystem and human health) and capitalism, Reich (2008) verifies how in the relentless fight
for profit, producers and consumers have made gains, but citizens and the democratic process
have fallen behind, and Standing (2011) highlights the emerging of a 'new dangerous class', the
precariat. This opinion is true for many historians. For example, Ryan (2012) argues that the
egalitarian elements of the Welfare capitalism 'are more minimal than either its defenders or
its critics think'.

The gaps and limits of these theories are that – 1. The fundamental contradictions (Clarke
1994) of capitalism have been forgotten, not properly developed and have not been connected
to the current conditions of socio-economic and environment reality; 2. The crises, starting
from the outbreak of the oil crisis of 1973 to the financial crisis of 2007-9, have always fallen
mainly under the Keynesian, liberal or neo-liberal paradigm without an alternative thought; 3.
The effects of crisis on societal and environmental justice have not been linked to the
contradictions of the capitalism, but rather to 'external' conditions, such as 'scams' or to the
fact that individuals or corporations have not 'played according to the rules'.

2
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
Dario Cositore

Contribution and Impact

Consequently, there is an urgent need for – 1. A critique of the dominant ideology (Marx 2010)
on the relation between contradiction of capitalism, crisis and their effect on social and
environmental justice thereof. 2. Measure empirically the effect of crises and political discourse
on social and environmental justice; and compare with what ILO's SS(MS)C no. 1201.

However, I must avoid falling into a pure formal analysis (Jessop 2002; Esping-Andersen
1990), in the sterile presentation of data (Ferragina et al 2011 and 2015) or, even worse, to
present the 'efficient inequality range' that would guarantee the existence of capitalism (Cornia-
Court 2001). Therefore, it is necessary to link the critique of capitalism to the history of crises.
That is, I must connect dialectically the critique of the mainstream political and economic
theory to the analysis and comparison of statistical and historical data. Hence, in addition to
the two previous points, I need to – 3. Track the history of contemporary crises (Faulkner
2013). I will consider the crises of ‘post-Fordism’ (e.g. from the oil crisis of 1973 to the
financial crisis of 2007-9), and link these crises to the contradictions of capitalism and show
their consequences for the social and environmental justice (Kliman 2011; Lapavitsas 2013);
4. Analyzing, abstracting from the starting conditions, the contradictions of the capitalist mode
of production (Harman 2009).

In conclusion, empirically I will contribute with the historical and statistical analysis of crisis
from the oil crisis of 1973 to the Great Recession of 2007-2009 and describe the current and
(possibly) the future conditions of the two fundamentals elements of capitalism, society and
nature. Furthermore, I will compare and analyse those data against the Social Security
(Minimum Standards) Convention no. 102 of the International Labour Organization. The
research will generate empirical knowledge about contradictions, crisis and their outcomes on
the societal and environmental justice. Theoretically, I will problematize the concept of
capitalism in the 21st Century, comment on the ideology of capitalism in relation to the
outcomes of crises on societal and environmental justice, and reformulate the fundamental
contradictions of capitalism according to its current stage of development. The main impact
of this research is to contribute to renew and develop critical approach to political, societal
and economic debates and summing up empirical findings about the influence of capitalism
on societal and environmental justice.

Research Designed

The research will use an extensive and comparative literature review on Marx and Marxist
political thought, contemporary history of capitalism and history of crises related to the
knowledge economy from 1973 to 2007-9. In addition, I will review the main studies and

1 The International Labour Organization’s Social Security (Minimum Standards) Convention, 1952 (No. 102) is an international
instrument, based on basic social security principles, that establishes worldwide-agreed minimum standards for all nine
branches of social security. These branches are medical care; sickness benefit; unemployment benefit; old-age benefit;
employment injury benefit; family benefit; maternity benefit; invalidity benefit; and survivors' benefit.
3
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
 Is Capitalism collapsing?
An historical analysis of Crises, Contradictions, Counter-tendencies and the Devastating effects of Capitalism

statistics made at national, European and international level and reports done by international
organizations such as the OECD2 and the ILO3. All this information will provide essential
background on the core research questions and provide several points of view. As a second
phase, I will conduct the empirical research focused on the reproduction and the current
conditions of society and nature. Furthermore, I will undertake a comparison between what it
should be according to worldwide life and nature standards, following ILO. Additionally, I
will collect surveys about ‘working conditions’ and ‘ecosystem conditions’, from the EWCS4
and WVS5, so that we would benefit from sharing the direct experience of the workers into
their work environment and citizens in their living space. All this process will allow me to
gather vital information about the emergence and significance of crisis, the impact of the
capitalism at the individual and social level, the relation between contradictions of capitalist
development and crisis and, finally, the scientific or ideological character of contemporary
political thought. With this information, I will write the thesis and papers to present in
professional and academic conferences. I am confident in my ability to carry out this project
safely. For more than five years, I have done research on capitalism – especially its crisis,
history and contradictions. Over this period, I have met many people related with those issue,
both as theorist or as political militants whom I will contact during the first stage of the field
work. My native language is Italian. I am advanced in English, German, Spanish and French.
This will allow me to investigate directly the information sources avoiding the risk of ‘second
hand information’.

Plan and timetable

1. Study of History of Capitalism from 1973 to 2007-9; 2. Review Marx and Marxist Political
Year Writings and Theories of Capitalism; 3. Write a first draft of the material studied and a first
1 plan of the thesis.
Year 1. Investigate statistical data and empirical findings on the effect of crisis on ‘society’ and
2 ‘nature’ in order to justify them according to Marx and Marxism; 2. Compare the findings
against ILO’s policies on ‘working conditions’ and look for discrepancies or identities; 3.
Identify additional readings. 4. Write a second draft of the material studied and a general
structure of the thesis.
Year 1. Summarise the results of the material studied. 2. Revise of chapters, design of tables and
3 create the layout of the thesis. 3. Submission of the final dissertation thesis. 4. Viva.

References

Appleby J. The Relentless Revolution, W.W. Norton & Co., New York, 2010, pp. 430.
Arrighi G. The Long Twentieth Century, Verso, London, 2010, pp. 342.
Baran P. and Sweezy P. Monopoly Capital, Monthly Review Press, New York, 1966, pp. 355.
Borstelmann T. The 1970s, Princeton University Press, Princeton, 2012, pp. 293.
2 Organization for Economic Co-operation and Development.
3 International Labour Organization.
4 European Working Conditions Surveys.
5 World Values Survey.

4
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
Dario Cositore

Brynjolfsson E. and McAfee A. The Second Machine Age, W. W. Norton & Company, London,
2014, pp. 134.
-Race against the Machine, Digital Frontier Press, 2011, pp. 42.
Braverman H. Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century, New
York, Monthly Review Press, 1974, pp. 294.
Brewer A. Marxist Theories of Imperialism, Routledge, London, 2001, pp. 284.
Cameron R. and Neal L. A Concise Economic History of the World, Oxford University Press, New
York, 2003 (§§ 1 and 7-16), pp. 400.
Carchedi G. Behind the Crisis, Brill, Boston, 2011, pp. 271.
Castells M. The Rise of the Network Society, Blackwell, Oxford, 2010, pp. 493.
Clark B., Foster J.B. and York R. The Ecological Rift, Monthly Review Press, New York, 2011,
pp. 500.
Clark G. A Farewell to Alms, Princeton University Press, Princeton, 2007 (§§ 15-18), pp. 75.
Clarke S. Marx’s Theory of Crisis, Palgrave McMillan, London, 1994 pp. 191.
-Keynesianism, Monetarism and the Crisis of the State, Edward Elgar, Aldershot, 1988, pp. 344.
-The State debate, Palgrave MacMillan, London, 1991, pp. 230.
-Marx, Marginalism and Modern Sociology, Palgrave MacMillan, London, 1991, pp. 254.
Cogoy M. The Fall in the Rate of Profit and the Theory of Accumulation, IJPE, New York, 1987, pp.
19.
-Neo-Marxist Theory, Marx, and the Accumulation of Capital, IJPE, New York, 1987, pp. 54.
Comtois C., Rodrigue J.P. and Slack B. The Geography of Transport Systems, Routledge, London,
2006, pp. 250.
Cowey J. Stayin’ Alive, The New Press, New York, 2011, pp. 350.
Cox N. and Federici S. Counter-planning from the Kitchen, Falling Wall Press, New York 1975, pp.
24.
Dobb M. Theories of Value and Distribution, Cambridge University Press, Cambridge, 2002
[1973], pp. 229.
Duménil G. and Lévy D. Capital Resurgent, Harvard University Press, Cambridge, 2004, pp.
206.
Ellul J. The Techological Society, Vintage Books, New York, 1964, pp. 433.
Faulkner N. A Marxist History of the World, Pluto Press, London, 2013 (§§ 7-15), pp. 210.
Federici S. Revolution at point zero, PM Press, Oakland, 2012, pp. 133.
Foster J.B. and Magdoff F. The Great Financial Crisis, New York University Press, New York,
2009, pp. 120.
Foster J.B. The Theory of Monopoly Capitalism, Monthly Review Press, New York, 2014, pp. 290.
Frum D. How We Got Here, Basic Books, New York, 2000, pp. 418.
Gordon D.M., Reich M. and Edwards R. Segmented work, divided workers, Cambridge University
Press, New York, 1992, pp. 274.
Hansen F.R. The Breakdown of Capitalism, Routledge, London, 1984, pp. 129.
Harman C. Explaining the Crisis, Bookmarks, London, 1999, p. 150.
-Zombie Capitalism, Bookmarks Publications, London, 2009, pp. 400.
Harvey D. Seventeen Contradictions and the End of Capitalism, Profile Books, London, 2014, pp.
167.
-The New Imperialism, Oxford University Press, Oxford, 2003, pp. 212.
5
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
 Is Capitalism collapsing?
An historical analysis of Crises, Contradictions, Counter-tendencies and the Devastating effects of Capitalism

-The Enigma of Capital, Oxford University Press, Oxford, 2010, pp. 260.
-The Limits to Capital, Blackwell, Oxford, 1982, pp. 446.
-A Brief History of Neoliberalism, Oxford University Press, Oxford, 2007, pp. 201.
Heilbroner R. The Wordly Philosophers, Touchstone, 1999, New York, pp. 157.
Hilferding R. Finance Capital, Routledge and Kegan Paul, London, 1981, pp. 340.
Hobsbawm E. The Age of Extremes, Abacus, London, 1995, pp. 565.
Holloway J. and Picciotto S. State and Capital, Edward Arnold, London, 1978, pp. 177.
Howard M.C. and King J.E. A History of Marxian Economics, 2 vols., Palgrave MacMillan, New
York, 1989-1992, pp. 730.
Huesemann M. H. and Huesemann J.A. Technofix, New Society Publishers, Vancouver, 2011,
pp. 430.
Humes E. Door to Door, Harper Perennial, New York, 2007, pp. 340.
Jensen D. Endgame, 2 vols., Seven Stories Press, New York, 2006, pp. 820.
Kliman A. Reclaiming Marx’s ‘Capital’, Lexington, Lanham, 2007, pp. 205.
-The Failure of Capitalist Production, Pluto, London, 2011, pp. 207.
Kocka J. A Short History of Capitalism, Princeton University Press, Princeton, 2016, pp. 170.
Kühne K. Economics and Marxism, 2 vols., Macmillan, London, 1979, pp. 740.
La Barca G. International Trade in 1970s, Bloomburyy, London, 2013, pp. 172.
Lapavitsas C. Profiting Without Producing, Verso, London, 2013, pp. 370.
Lefebvre H. State, Space, World, University of Minnesota Press, Minneapolis, pp. 309.
Lenin V.I. Imperialism, the Highest Stage of Capitalism, Resistance Books, Sydney, 1999, pp. 85.
-State and Revolution, International Publishers Co., New York, 1932, pp. 68.
Levinson M. The Box, Princeton University Press, Princeton, 2008, pp. 350.
Levy F. and Murnane R.J. The New Division of Labour, Princeton University Press, Princeton,
2004, pp. 158.
Magdoff H. and Sweezy P.M. Stagnation and the Financial Explosion, Monthly Review Press, New
York, 1987, pp. 170.
Mandel E. Marxist Economic Theory, 2 vols., Merlin, London, 1962, pp. 1069.
-Late Capitalism, London, NLB, 1976, pp. 577.
Martin J. The Poulanzas Reader, Verso, London, 2008, pp. 386.
Marx K. in Karl Marx and Friedrich Engels Collected Works (CW), Electric Book, Lawrence &
Wishart, Book, 2010.
MacKenzie D. and Wajcman J. The Social Shaping of Technology, McGraw Hill Education, New
York, 1999, pp. 450.
Mattick P. Business as usual, Reaktion Books, London, 2011, pp. 96.
McNally D. Global slump, PM Press, Oakland, 2011, pp. 181.
Meadows D. The Limits to Growth, Universe Books, New York, 1972, pp. 159.
Milliband R. The State in Capitalist Society [1969], Central Books, Dagenham, 2009, pp. 255.
Morris I. The Measure of Civilization, Princeton University Press, Princeton, 2013, pp. 350.
Moseley F. Marx’s Theory of Money, Palgrave MacMillan, New York, 2005, pp. 215.
Mumford L. The Myth of the Machine, vols. 2, Mariner Books, Boston, 1971 (Vol. I: §§ 6-12 and
Vol. II: §§ 7-14), pp. 714.
Napoleoni C. Leccionés sobre el capitulo sexton inédito de Marx [1972], Ediciones Era, Ciudad de
México, 1976, pp. 194.
6
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
Dario Cositore

Neal L. and Williamson J. G. The Cambridge History of Capitalism, Vol. 2, From 1848 to the Present,
Cambridge University Press, Cambridge, 2015, pp. 530.
Noble D.F. Forces of Production, Transaction Publishers, London, 2011, pp. 320.
Nocks L. The Robot, Greenwood Press, London, 2007, pp. 194.
O’Connor J. Natural Causes: Essays in Ecological Marxism, The Guildford Press, New York, 1998,
pp. 310.
-The Fiscal Crisis of The State, Transaction Publishers, London, 2009 [1972], pp. 257.
Offe C. The Contradictions of the Welfare State, Hutchinson, London, 1984, pp. 265.
O'Neil C. Weapons of Math Destruction, Broadway Books, New York, 2017, pp. 125.
Postman N. Technopoly, Vintage Books, New York, 1993, pp. 197.
Postone M. Time, Labor, and Social Domination, Cambridge University Press, Cambridge, 1993,
pp. 382.
Rifkin J. The End of Work, Tarcher, New York, 1996, pp. 330.
-The Zero marginal cost society, Palgrave MacMillan, New York, 2014, pp. 233.
Rose G. 90% of Everything, Picador, London, 2014, pp. 270.
Rosdolsky R. The Making of Marx’s ‘Capital’, Pluto Press, London, 1977, pp. 540.
Saad-Filho A. The Value of Marx, Routledge, London, 2002, pp. 100.
Scheidel W. The Great Leveler, Princeton University Press, Princeton, 2017, pp. 500.
Schumpeter J.A. Capitalism, Socialism and Democracy, Routledge, London, 2003, pp. 407.
Schwab K. The Fourth Industrial Revolution, Crown Business, Danvers, 2017, pp. 160.
Standing G. The Precariat, Bloombury Academic, London, 2011, pp. 182.
Steiner C. Automate This, Portfolio, London, 2013, pp. 220.
Stiglitz J.E. The Roaring Nineties, W.W. Norton & Co., New York, 2003, pp. 418.
Sweezy P. The Theory of Capitalist Development, Dobson, London, 1946, pp. 367.
Trotsky L. The Permanent Revolution , Pathfinder Press, New York, 1969 [1931], pp. 252.
Toussaint E. Your money or your life, Pluto Press, London, 1999, pp. 275.
Wajcman J. Pressed for Time, University of Chicago Press, Chicago, 2015, pp. 175.
Zadeh-Hossein I. Beyond Mainstream Explanation of the Financial Crisis, Routledge, London, 2014,
pp. 161.

Add Keynes (On Persuasion and General Theory), Stiglitz (Globalization and The Price of
Inequality), Hayek (The Road to Serfdom and Monetary Theory and Trade Cycle), Friedman
(Capitalism and Freedom), Von Mises (Human Action and Theory of Money and Credit),
Veblen (Theory of the Leisure Class), Polanyi (The Great Transformation), Krugman (End
This Depression Now and The Return of Depression Economics and the Crisis of 2008), Kalecki (Ed.
Lopez and Assous), Minski (Stabilising and unstable economy) and Piketty (21st Century
Capital).

26,951+257/4= 5216 hours of study.

If 4 h/die=1,304 days.
If 6 h/die=869 days.
If 8 h/die=652 days.

If 6 h/die for 6 days a week (313 days of study a year)= 70 days to write the final thesis.
7
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.
 Is Capitalism collapsing?
An historical analysis of Crises, Contradictions, Counter-tendencies and the Devastating effects of Capitalism

If 8 h/die for 5 days a week (261 days of study a year)= 131 days to write the final thesis.

8
This document and any files attached are subject to professional secrecy and contain confidential information intended only for the person (s) to whom
it is addressed. If you are not the intended recipient, you are hereby notified that any use or distribution of this document is strictly prohibited: please
notify the sender and delete the original message.