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´╝Ő. 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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Cartels can use their extra profits used through price-fixing capotal undermine competitors abroad through underselling. In this sense, the stock exchange is a mechanism of totalizing marketization. On the one hand, Hilferding is suggesting that joint stock companies pursue a more economically rational logic, distinct from the personal caprice of the entrepreneur-capitalist.

The national idea, which found a natural limit in the constitution of a state based upon the nation, because it recognized the right of all nations to independent existence as states, and hence regarded the frontiers of the state as being determined by the natural boundaries of the nation, is now transformed into the notion of elevating one’s own nation above all others.

She had to defend the revolutionary achievements against continental feudalism; and on the other hand the creation of a new empire of modern capitalism was a threat to the established position which England held on the world market, and so France was obliged at the same time to contest England’s domination of the world market. Help Center Find new research papers in: Directly afterwards, he enrolled at the University of Vienna to study medicine.

It suggests that the nature of crises changes over time, as cartels develop. From tohe was publisher of the theoretical journal Die Gesellschaft. Hilferding then proceeds to look at the stock capktal, where shares and securities circulate see p for a concise definition of securities. The interest which its owners have in obtaining the largest possible profit as quickly as possible, their lust for booty, which caoital in every capitalist soul, can be subordinated, to a certain extent, by the managers of the corporation, to the purely technical requirements of production.

Rudolf Hilferding, Finance Capital ()

In the struggle against hilferidng mercantilism and political absolutism, the bourgeoisie was the champion of opposition to the state. The book is arranged in five sections. Thus liberalism was purely negative, in sharp contrast to the state during the mercantilist period of early capitalism which, in principle, wanted to regulate everything, and also to all funance systems which seek constructively rather than destructively to replace anarchy and the freedom of competition by a conscious regulation of economic life, and a self-organizing society.

To protest the policies of the Council, the USPD withdrew its three representatives from the government. In particular, what bothered me reading this was his discussion of finance, monopolies and marketization. Mechanisms such as outsourcing and internationalisation appear as competition from a certain perspective i. On the other hand, universal military service, which arms the mass of the people, was bound to persuade the fonance very quickly that if the army were not to become a menace to its rule, finannce strictly hierarchical organization was required, based upon an exclusive officers’ corps which would be a pliable instrument of the state.


Thus, they too begin to hate the capotal and reading between the lines we can see the start of the Marxist explanation for the class roots of fascism. Following this transformation, the industrial liberal bourgeoisie, favourable, at least initially, to the free market and to the suppression of feudal restrictions, has become, in the course of time, financial imperialistic bourgeoisie, organically operating within the structure of the State.

Skip to main content. Together with Capial Kautsky he formulated the Heidelberg Program in Hilferding disagreed with the Bolsheviks, led by Lenin, and opposed the October Revolution.

While continental liberalism – and this shows a characteristic contrast between ideology and reality – as formulated in classical fashion by the French deduced the theoretical consequences of liberalism in all spheres of political and intellectual life much more boldly and systematically than did its English counterpart, since it came upon the scene later with quite a different body of scientific knowledge, so that it was formulated in a far more comprehensive way, based upon a rationalist philosophy, English liberalism rested essentially upon political economy and its practical realization was subject from the very beginning to definite limitations.

Inhe gave up his job as a doctor and, following August Bebel ‘s call, [8] started teaching Economics and Economic history at the training center of the SPD in Berlin.


It is only natural that the hilferdjng principle should have been realized first in England where it was championed by a bourgeoisie committed finabce free trade which had to appeal to the power of the state only for short periods of time in its conflict with the proletariat. This page was last edited on 12 Decemberat Perhaps more interestingly for our purposes, he argues that fixed capital investments impose commitments and pressures that can be very serious when prices are eventually forced down in a recession.

Margarete gave birth to their 1st child, Karl Emil. His ideas were very influential- most obviously on Lenin whose Imperialism draws on this work. Moreover, the fact that the unification of Germany was accomplished in a counter-revolutionary way was bound to reinforce very strongly the position of the state in the consciousness of the people, whereas in France military defeat led to a concentration of all available forces upon the task of re-establishing state power.

Finance Capital | work by Hilferding |

The latter face disaster if an investment makes lower than average profits in the short term. He published numerous articles in Die Neue Zeit and Kampf. But from the perspective of the cosmopolitan oligarchies that create and exploit these mechanisms, markets increases their power rather than subjecting it to greater competition. This leads him onto the final chapter of this section, where he lays out the logical ends of these developments.


But it is carried away and becomes intoxicated when it unveils its own ideal. It needs also a strong state which will ensure respect for the interests of finance capital abroad, and use its political power to extort advantageous supply hilfeerding and trade agreements from smaller states ; a state which can intervene in every corner of the globe and transform the whole world into a sphere of investment for its own finance capital.

Hence, the tying together of finance capital and the violent subjugation of colonies. The economic policy of finance capital This is the climax of the book, where Hilferding reaches an all-encompassing denunciation of imperialism. Thanks to his correspondence with Kautsky, he got news about the party.

Like Marx, he likes to include extended passages of quite dry analytical language, and then suddenly accelerate into angry rhetoric about the injustices of capitalism. Liberal free trade-ism can therefore be attacked from a number of angles, according to Hilferding. In these senses, the idea of an increasingly dominant elite group of gigantic firms is presumably entirely compatible with marketization as we define it- i. After becoming a leading journalist for the SPD, [3] he participated in the November Revolution in Germany and was Finance Minister of Germany in and from to Most importantly, as Europe moves towards finance capital, and hence greater concentration of capital in the hands of the banks, there is a growing and urgent need to export interest-bearing capital, as well.

Speculation is a classic example of something intrinsically stupid and irrational, which in the process of capitalist development becomes essential- or at least, it is important to a certain stage of capitalist development.

Rudolf attended a public gymnasium from which he graduated as an average student, allowing him access to the university. At first, Hilferding was stationed in Vienna, where he led the field hospital for epidemics. He hilfercing the assumption that the interpenetration of banking and industrial capital is the driver of monopolisation, but he argues that monopolisation actually increased during the last quarter of the 20th century- as Hilferding presumably would have expected.

Instead, it is a sum gained through the process of administering financial transactions. On the continent, however, the liberal view of the state had to be considerably modified from the very outset before it was able to prevail. He lived together with his wife and his two sons, Karl and Peter, who was born in It was not normative but self-interested, and consequently, in places like Hilfercing 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.