Archive for October, 2013

Capitalism and ‘High Tech’

October 27, 2013

A reader has asked why many of the examples I have given are from the “high-tech” industry. Actually, there are good reasons to use examples from high tech to illustrate the laws that govern the capitalist economy.

Capitalist production develops unevenly, not only from country to country but from industry to industry. Marx makes clear in “Capital” that not all industries made the transition from handcraft to manufacture and from manufacture proper to “machinofacture” at the same time.

In the 19th century, what Marx and Engels called “modern industry” meant the industries that had adopted steam as their main source of motive power. By this definition, the textile industry, both spinning and weaving, was during the first three-quarters of the 19th century the most modern of modern industries. Consequently, in the early and middle 19th century—the time of Marx—the textile industry was the industry where the laws of motion of capitalism showed themselves most clearly. Understanding the development of the textile industry was (and is) crucial to understanding the politics of the 19th century.

The main center of textile production was in Britain, centered on the industrial city of of Manchester. Frederick Engels, Marx’s co-worker, worked there for many years managing his family’s textile factory. The main raw material for the 19th-century textile industry—cotton—was produced in the United States, not by wage labor but by the labor of African slaves.

During the 19th century, the U.S. was developing its own textile industry, based in the New England states, then the center of U.S. industry. Like the British textile industry, the U.S. textile industry was dependent on cotton produced by slave labor in the southern states of the U.S.

At the time of the American war of independence of 1775-1783, which represents the first phase of the U.S. bourgeois-democratic revolution, slavery, which existed in both southern and northern states, appeared to be dying out. But the invention of the cotton gin, combined with the dramatic rise of the steam-powered textile industry in both Britain and New England, gave a new lease on life to slavery in the southern states of the U.S.

The issue of whether the U.S. would be dominated by the free labor—wage labor—system or chattel slavery moved to the center of U.S. and even world politics, where it was to remain until it was finally resolved by force in the U.S. Civil War of 1861-1865 and then the post-Civil War Reconstruction that ended in 1876.

Read more …