Rentier capitalism: Difference between revisions
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'''Rentier capitalism''' describes the economic practice of gaining large profits without contributing to society.<ref>{{cite web|url=http://www.peterfrase.com/2011/07/slouching-towards-rentier-capitalism/|title=Slouching towards rentier capitalism|author=Peter Frase|date=7 July 2011}}</ref><ref>{{cite web|url=https://www.theguardian.com/commentisfree/2011/aug/29/academic-publishers-murdoch-socialist|title=Academic publishers make Murdoch look like a socialist|first=George|last=Monbiot|date=29 August 2011|work=The Guardian}}</ref><ref>{{cite journal|url=https://www.radicalphilosophy.com/wp-content/files_mf/rp159_commentary2_rentiercapitalismiranianpuzzle_doust.pdf|author=Dariush M. Doust|title=Rentier capitalism and the Iranian puzzle|journal=Radical Philosophy|date=January–February 2010|pages=45–49|issue=159}}</ref> A rentier is someone who earns income from capital without working. This is generally done through ownership of assets that generate [[Yield (finance)|yield]] (cash generated by assets), such as [[Real estate investing|rental properties]], [[Share (finance)|shares]] in [[dividend]] paying companies, or [[Bond (finance)|bonds]] that pay [[interest]].{{Marxism}}The origins of the term are unclear; it is compatible with the [[Marxism|Marxist]] idea of [[surplus value]] extraction, although the combination of words “[[wikt:rentier|rentier]] [[capitalism]]" were never used by [[Karl Marx]] himself. |
'''Rentier capitalism''' describes the economic practice of gaining large profits without contributing to society.<ref>{{cite web|url=http://www.peterfrase.com/2011/07/slouching-towards-rentier-capitalism/|title=Slouching towards rentier capitalism|author=Peter Frase|date=7 July 2011}}</ref><ref>{{cite web|url=https://www.theguardian.com/commentisfree/2011/aug/29/academic-publishers-murdoch-socialist|title=Academic publishers make Murdoch look like a socialist|first=George|last=Monbiot|date=29 August 2011|work=The Guardian}}</ref><ref>{{cite journal|url=https://www.radicalphilosophy.com/wp-content/files_mf/rp159_commentary2_rentiercapitalismiranianpuzzle_doust.pdf|author=Dariush M. Doust|title=Rentier capitalism and the Iranian puzzle|journal=Radical Philosophy|date=January–February 2010|pages=45–49|issue=159}}</ref> A rentier is someone who earns income from capital without working. This is generally done through ownership of assets that generate [[Yield (finance)|yield]] (cash generated by assets), such as [[Real estate investing|rental properties]], [[Share (finance)|shares]] in [[dividend]] paying companies, or [[Bond (finance)|bonds]] that pay [[interest]].{{Marxism}}The origins of the term are unclear; it is compatible with the [[Marxism|Marxist]] idea of [[surplus value]] extraction, although the combination of words “[[wikt:rentier|rentier]] [[capitalism]]" were never used by [[Karl Marx]] himself. |
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Modern economists agree that the power dynamics of the rentier-tenant relationship are oppressive,<ref>{{Cite web|last=Fukuyama|first=Francis|date=May 2016|title=What is corruption?|url=http://www.ridge.uy/wp-content/uploads/2016/05/Fukuyama_Francis.pdf}}</ref><ref>{{Cite book|last=Smith|first=Adam|title=The Wealth of Nations|year=1776|pages=Book 1, Chapter 6, Paragraph 8}}</ref> but capitalist theories such as the natural "euthanasia of the rentier" famously put forth by [[John Maynard Keynes]] have been abandoned in light of the increase in [[rent-seeking behavior]] seen over the past century.<ref>{{Cite journal|last=Keynes|first=John Maynard|title=The General Theory of Employment, Interest and Money|journal=Nature |year=1936|volume=137 |issue=3471 |pages=Chapter 24|doi=10.1038/137761a0 |bibcode=1936Natur.137..761B |s2cid=158925115 }}</ref><ref>{{Cite web|last=Tho|date=2020-03-30|title=Keynes and the Euthanasia of the Rentier|url=https://mises.org/wire/keynes-and-euthanasia-rentier|access-date=2022-02-20|website=Mises Institute|language=en}}</ref><ref>{{Cite journal|last1=Piketty|first1=Thomas|last2=Saez|first2=Emmanuel|last3=Stantcheva|first3=Stefanie|date=February 2014|title=Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities|url=https://www.aeaweb.org/articles?id=10.1257/pol.6.1.230|journal=American Economic Journal: Economic Policy|language=en|volume=6|issue=1|pages=230–271|doi=10.1257/pol.6.1.230|issn=1945-7731}}</ref> Economist [[Guy Standing (economist)|Guy Standing]] expects that the a revolt against rentier capitalism has to come from the precariat, as the [[proletariat]] is too wedded to forms of social democracy to lead a revolt.<ref>{{Cite news |last=Forrester |first=Katrina |date=2016-10-26 |title=The Corruption of Capitalism by Guy Standing review – work matters less than what you own |language=en-GB |work=The Guardian |url=https://www.theguardian.com/books/2016/oct/26/the-corruption-of-capitalism-guy-standing-review-why-rentiers-thrive-and-work-does-not-pay |access-date=2023-02-13 |issn=0261-3077}}</ref> |
Modern economists agree that the power dynamics of the rentier-tenant relationship are oppressive,<ref>{{Cite web|last=Fukuyama|first=Francis|date=May 2016|title=What is corruption?|url=http://www.ridge.uy/wp-content/uploads/2016/05/Fukuyama_Francis.pdf}}</ref><ref>{{Cite book|last=Smith|first=Adam|title=The Wealth of Nations|year=1776|pages=Book 1, Chapter 6, Paragraph 8}}</ref> but capitalist theories such as the natural "euthanasia of the rentier" famously put forth by [[John Maynard Keynes]] have been abandoned in light of the increase in [[rent-seeking behavior]] seen over the past century.<ref>{{Cite journal|last=Keynes|first=John Maynard|title=The General Theory of Employment, Interest and Money|journal=Nature |year=1936|volume=137 |issue=3471 |pages=Chapter 24|doi=10.1038/137761a0 |bibcode=1936Natur.137..761B |s2cid=158925115 }}</ref><ref>{{Cite web|last=Tho|date=2020-03-30|title=Keynes and the Euthanasia of the Rentier|url=https://mises.org/wire/keynes-and-euthanasia-rentier|access-date=2022-02-20|website=Mises Institute|language=en}}</ref><ref>{{Cite journal|last1=Piketty|first1=Thomas|last2=Saez|first2=Emmanuel|last3=Stantcheva|first3=Stefanie|date=February 2014|title=Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities|url=https://www.aeaweb.org/articles?id=10.1257/pol.6.1.230|journal=American Economic Journal: Economic Policy|language=en|volume=6|issue=1|pages=230–271|doi=10.1257/pol.6.1.230|issn=1945-7731}}</ref> Economist [[Guy Standing (economist)|Guy Standing]] expects that the a revolt against rentier capitalism has to come from the [[precariat]], as the [[proletariat]] is too wedded to forms of social democracy to lead a revolt.<ref>{{Cite news |last=Forrester |first=Katrina |date=2016-10-26 |title=The Corruption of Capitalism by Guy Standing review – work matters less than what you own |language=en-GB |work=The Guardian |url=https://www.theguardian.com/books/2016/oct/26/the-corruption-of-capitalism-guy-standing-review-why-rentiers-thrive-and-work-does-not-pay |access-date=2023-02-13 |issn=0261-3077}}</ref> |
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==Usage by Marxists== |
==Usage by Marxists== |
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Revision as of 10:05, 13 February 2023
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Rentier capitalism describes the economic practice of gaining large profits without contributing to society.[1][2][3] A rentier is someone who earns income from capital without working. This is generally done through ownership of assets that generate yield (cash generated by assets), such as rental properties, shares in dividend paying companies, or bonds that pay interest.
| Part of a series on |
| Marxism |
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The origins of the term are unclear; it is compatible with the Marxist idea of surplus value extraction, although the combination of words “rentier capitalism" were never used by Karl Marx himself.
Modern economists agree that the power dynamics of the rentier-tenant relationship are oppressive,[4][5] but capitalist theories such as the natural "euthanasia of the rentier" famously put forth by John Maynard Keynes have been abandoned in light of the increase in rent-seeking behavior seen over the past century.[6][7][8] Economist Guy Standing expects that the a revolt against rentier capitalism has to come from the precariat, as the proletariat is too wedded to forms of social democracy to lead a revolt.[9]
Usage by Marxists
In his early works, Karl Marx juxtaposed the terms "rentier" and "capitalist" to argue that a rentier tends to exhaust his profits, whereas a capitalist must perforce re-invest most of the surplus value in order to survive competition. He wrote, "Therefore, the means of the extravagant rentier diminish daily in inverse proportion to the growing possibilities and temptations of pleasure. He must, therefore, either consume his capital himself, and in doing so bring about his own ruin, or become an industrial capitalist...."[10] In "Theories of Surplus Value" (written 1862–1863), Marx states "...that interest (in contrast to industrial profit) and rent (that is the form of landed property created by capitalist production itself) are superfetations (i.e., excessive accumulations) which are not essential to capitalist production and of which it can rid itself. If this bourgeois ideal were actually realisable, the only result would be that the whole of the surplus-value would go to the industrial capitalist directly, and society would be reduced (economically) to the simple contradiction between capital and wage-labour, a simplification which would indeed accelerate the dissolution of this mode of production."[11]
Vladimir Lenin asserted that the growth of a stratum of idle rentiers under capitalism was inevitable and accelerated due to imperialism:
Hence the extraordinary growth of a class, or rather, of a stratum of rentiers, i.e., people who live by 'clipping coupons' [in the sense of collecting interest payments on bonds], who take no part in any enterprise whatever, whose profession is idleness. The export of capital, one of the most essential economic bases of imperialism, still more completely isolates the rentiers from production and sets the seal of parasitism on the whole country that lives by exploiting the labour of several overseas countries and colonies.[12]
Current usage
Current usage of the term 'rentier capitalism' describes the gaining of 'rentier' income from ownership or control of assets that generate economic rents rather than from capital or labour used for production in a free competitive market.[13] The term rentier state is mainly used not in its original meaning, as an imperialistic state thriving on labor of other countries and colonies, but as a state which derives all or a substantial portion of its national revenues from the rent of indigenous resources to external clients.
Guy Standing has claimed rentier capitalism has become predominant in capitalistic economies since the 1980s.[14] Brett Christophers of Uppsala University, Sweden has asserted that rentier capitalism has been the foundation of the United Kingdom's economic policy from the 1970s onwards.[15] With the return of high inflation to the United Kingdom in 2022, political economist William Davies surveys recent British economic events in light of rentier capitalism.[16]
See also
References
- ^ Peter Frase (7 July 2011). "Slouching towards rentier capitalism".
- ^ Monbiot, George (29 August 2011). "Academic publishers make Murdoch look like a socialist". The Guardian.
- ^ Dariush M. Doust (January–February 2010). "Rentier capitalism and the Iranian puzzle" (PDF). Radical Philosophy (159): 45–49.
- ^ Fukuyama, Francis (May 2016). "What is corruption?" (PDF).
- ^ Smith, Adam (1776). The Wealth of Nations. pp. Book 1, Chapter 6, Paragraph 8.
- ^ Keynes, John Maynard (1936). "The General Theory of Employment, Interest and Money". Nature. 137 (3471): Chapter 24. Bibcode:1936Natur.137..761B. doi:10.1038/137761a0. S2CID 158925115.
- ^ Tho (30 March 2020). "Keynes and the Euthanasia of the Rentier". Mises Institute. Retrieved 20 February 2022.
- ^ Piketty, Thomas; Saez, Emmanuel; Stantcheva, Stefanie (February 2014). "Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities". American Economic Journal: Economic Policy. 6 (1): 230–271. doi:10.1257/pol.6.1.230. ISSN 1945-7731.
- ^ Forrester, Katrina (26 October 2016). "The Corruption of Capitalism by Guy Standing review – work matters less than what you own". The Guardian. ISSN 0261-3077. Retrieved 13 February 2023.
- ^ Karl Marx, "The Economic and Philosophical Manuscripts", Institute of Marxism-Leninism in the Union of Soviet Socialist Republics, 1932. [1]
- ^ "Economic Manuscripts: Theories of Surplus-Value by Karl Marx 1863". www.marxists.org.
- ^ Vladimir Ilyich Lenin, "Imperialism, the Highest Stage of Capitalism", Lenin’s Selected Works, Progress Publishers, 1963, Moscow, Volume 1, pp. 667–766. [2]
- ^ Birch, Kean (6 February 2019). "Technoscience Rent: Toward a Theory of Rentiership for Technoscientific Capitalism". Science, Technology, & Human Values. 45: 3–33. doi:10.1177/0162243919829567.
- ^ Standing, Guy. The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay, London: Biteback (2016)
- ^ Christophers, Brett (12 August 2020). "The PPE debacle shows what Britain is built on: rentier capitalism". The Guardian. London, United Kingdom. ISSN 0261-3077. Retrieved 27 December 2020.
- ^ Davies, William (30 May 2022). "This age of inflation reveals the sickness ailing Britain's economy: rentier capitalism". The Guardian. London, United Kingdom. ISSN 0261-3077. Retrieved 30 May 2022.
Bibliography
- Robert Pollin, "Resurrection of the Rentier", in New Left Review 46, July–August 2007, pp. 140–153.
- Michael Hudson. Financial Capitalism v. Industrial Capitalism. The Other Canon Conference on Production Capitalism vs. Financial Capitalism (Oslo, 3–4 September 1998).
- Karl Marx, "The Economic and Philosophical Manuscripts", Institute of Marxism–Leninism in the Union of Soviet Socialist Republics, 1932. The Economic and Philosophical Manuscripts
- Karl Marx, "Theories of Surplus-Value", Progress Publishers, 1863. Economic Manuscripts: Theories of Surplus-Value by Karl Marx 1863
- Vladimir Lenin, "Imperialism, the Highest Stage of Capitalism", Lenin's Selected Works, Progress Publishers, 1963, Moscow, Volume 1, pp. 667–766. Lenin: Imperialism, the Highest Stage of Capitalism'
- Ahmed Henni, Le capitalisme de rente: De la société du travail industriel à la société des rentiers. Paris: Harmattan, 2012.
- Guy Standing, The Corruption of Capitalism Why rentiers thrive and work does not pay (2016)