Capitalism

The end of the world has been a popular theme in literature, but have you considered the end of capitalism? Fredric Jameson argues that imagining a world without capitalism is harder than imagining the end of the world, as capitalism shapes our values and practices.

Capitalism has indeed woven itself into our lives to the extent that almost everyone has internalized to some extent its principles and ideologies. This internalization manifests in our daily choices, aspirations and perception of societal success and value. It reflects how capitalism, as a total system, governs economic exchanges and profoundly shapes our worldview. It influences how we think about progress, our relationships with others, and our roles within society. The reach of capitalism extends far beyond market transactions or business; it is deeply embedded in social, cultural and more than ever into our personal and intimate spheres.

To define and think against capitalism, a basic understanding of Marxist theory is necessary.

Navigating the topic of capitalism can also be challenging for designers, as its definition and implications are often misunderstood or obscured by various narratives and ideologies. The mystification of capitalism, reinforced by dominant discourses and cultural norms, plays a significant role in making it appealing and obscuring its inherent flaws and systemic inequalities.

Designers, influenced by solutionism and a focus on innovation, struggle to critically engage with capitalism as they often prioritize the pursuit of novel solutions and immediate problem-solving over deeper structural analysis. The allure of market-driven approaches and the belief in entrepreneurship as a path to social change can overshadow the need for a more nuanced understanding of capitalism’s complexities and impacts.

Designers may lack a precise framing of what capitalism truly means, as public discourse around the topic tends to be oversimplified or clouded by ideological biases. This can lead to a superficial understanding of capitalism, limiting designers’ ability to critically examine its systemic effects and identify alternative pathways .

Capitalism

Capitalism is a mode of production or process characterised by the private ownership of the means of production (factories, land, machinery, social media, intellectual property, media outlets, logistics and supply chain networks, etc.) and the exploitation of labor power for the purpose of generating surplus value. The capitalist mode of production is based on the principle of profit maximisation and accumulation, in which the means of production are used to produce commodities that are sold on the market for a profit. The extraction of surplus value from the labor of workers allows capitalists to accumulate wealth and expand their control over the means of production.

This process of accumulation and expansion creates a system of class relations in which capitalists dominate workers and own the means of production. Capitalism is characterised by a constant drive to innovate and increase productivity in order to remain competitive and maintain profit margins, leading to a tendency towards constant growth and expansion, at the entire expense of ecological sustainability and social well-being. These productivity gains are then re-injected into production at the expense of free time and freedom.

Neoliberalism

Neoliberalism is an economic and political ideology that emphasizes the primacy of the market in organizing society and reducing the role of the state in economic affairs. Neoliberalism is characterised by the privatisation of public goods and services, deregulation and the dismantling of the welfare state. This results in the concentration of wealth and power in the hands of a small elite, while the majority of people are left with fewer protections and less access to basic services like healthcare, education, and housing.

Under neoliberalism, the state is restructured to facilitate the accumulation of capital by transnational corporations and global finance capital, often through mechanisms like tax breaks, subsidies and trade agreements that benefit the rich and powerful at the expense of workers, farmers and marginalised groups.

Neoliberalism also promotes the idea of “flexibility” in the labor market, meaning that workers are expected to be mobile, adaptable, and disposable in order to meet the demands of capital. This has resulted in the erosion of workers’ rights, the growth of precarious employment, and the proliferation of low-wage jobs with little to no benefits.

Structure

1. Capitalist infrastructure: Capitalism relies on a global infrastructure deeply intertwined with political, economic, and social systems. This infrastructure includes financial institutions, trade networks, technological platforms, and legal frameworks reinforcing capitalist dynamics and interests.
2. Global governance and institutions: Capitalism operates within a framework of global governance and institutions that are often shaped by and serve the interests of powerful capitalist actors. International organizations, trade agreements, and financial systems reinforce the existing capitalist order and limit the space for alternative economic models and approaches.
3. Technological dominance: Capitalism utilizes and shapes technological advancements to its advantage, further entrenching its hold on the world. Technological platforms and systems controlled by powerful corporations facilitate surveillance, data extraction and market dominance, reinforcing capitalist structures.
4. Economic interdependencies: Capitalism creates complex economic interdependencies across nations and regions. These interdependencies can make it challenging for countries to deviate from capitalist structures or challenge the status quo, as they risk disruptions to trade, investments and access to resources.
5. Cultural norms of capitalism: Capitalism fosters specific cultural norms and values that prioritize individualism, competition, and profit-seeking. These cultural norms perpetuate inequality, reinforce power imbalances and prioritize economic growth over social and environmental well-being.
6. Power relations in capitalism: Capitalism perpetuates power imbalances between the Global North and South, with the North exerting dominance over the South. These power dynamics stem from historical colonialism and neocolonial practices, where the North exploited the resources, labor and markets of the South, resulting in ongoing economic and social inequalities.

Lenses into capitalism

1. The capitalist octopus: Imagine capitalism as a vast octopus, with its tentacles reaching into every aspect of our lives. Each tentacle represents a different facet of capitalism, such as corporations, financial institutions, advertising and consumer culture. Just as the octopus extends its grasp, capitalism entwines itself into our economies, social systems and personal experiences, exerting control and shaping our behavior.
2. The capitalist theater: Envision capitalism as a grand theater production, where individuals play their roles within the capitalist narrative. The stage represents the economic landscape, with actors assuming various roles such as consumers, workers and entrepreneurs. Behind the scenes, unseen forces shape the script and set the stage, representing the systemic dynamics and power structures of capitalism.
3. The capitalist mind prison: Capitalism can be metaphorically depicted as a mind prison that shackles our thoughts and limits our imagination. Like prisoners trapped within the confines of a prison, capitalism constrains our ability to envision alternative futures and fosters a sense of resignation to its dominant paradigm. Breaking free from the capitalist mind prison demands critical consciousness, collective action and the cultivation of radical imaginations that transcend the boundaries imposed by the capitalist meta-paradigm.

Relationships between state and market

In capitalism, the state plays a limited role in the economy, and the market is given a high degree of autonomy. In neoliberalism, the state plays an even more limited role, and the market is given even greater autonomy. This often leads to the privatization of public goods and services, the deregulation of industries and the reduction of social protections.

Both capitalism and neoliberalism place a high emphasis on individual freedom and responsibility, but they differ in their conception of these concepts. In capitalism, individual freedom is often understood in terms of the ability to pursue economic self-interest, while in neoliberalism, it is often understood in terms of the ability to compete in the marketplace. Similarly, in capitalism, individual responsibility is often understood in terms of the obligation to create wealth and contribute to economic growth, while in neoliberalism, it is often understood in terms of the obligation to be self-sufficient and to rely on one’s own resources rather than state assistance.

Patriarchy

Aligned with conservative values capitalism reinforces patriarchy by placing value on traits traditionally associated with masculinity, such as aggression and competitiveness and devaluing traits associated with femininity, such as collaboration and care work. This leads to the undervaluing of jobs typically held by women, such as caregiving and service work and reinforces gendered hierarchies in the workplace. Also, capitalism relies structurally on the exploitation of cheap labor, which disproportionately affects women and people of color who are often paid lower wages and work in more precarious positions.

Racism

Capitalism reinforces racism by perpetuating systems of inequality and discrimination that have existed for centuries.

1. Scholars often trace the historical roots of capitalism and its entanglement with racist practices and ideologies. This includes exploring the role of slavery, colonialism and imperialism in the development of capitalist systems, as well as the ways in which racial hierarchies were constructed and perpetuated to justify exploitation.
2. Intersectional analysis recognizes that systems of oppression, such as racism and capitalism, intersect and mutually reinforce each other. Scholars explore how race, class, gender, and other social categories intersect to shape power dynamics and determine access to resources and opportunities within capitalist societies.
3. Studies examine how capitalism has historically relied on racialized labor, from colonial-era plantations to contemporary global supply chains. This involves analyzing the ways in which racial and ethnic groups have been marginalized, exploited and subjected to unequal working conditions, wages and opportunities within capitalist economies.

The pursuit of profit and authoritarianism

When authoritarian leaders collaborate with capitalist elites, it can be disastrous for democracy and human rights. In such cases, democracy becomes nothing more than a façade, while the real decision-making power remains concentrated in the hands of a few. This kind of system often results in the suppression of dissent and the restriction of freedoms, all in the name of preserving social stability and protecting the economy.

The rise of authoritarian regimes in countries like China and Russia, where capitalism and different forms of authoritarianism are present, demonstrates how capitalism can thrive even under a totalitarian regime. This further highlights the point that capitalism doesn’t guarantee democracy, and indeed can coexist with and even reinforce authoritarian regimes.

Plantations

Plantations played a significant role in the development of capitalism, particularly during the colonial era. They were large-scale agricultural enterprises that produced valuable commodities for international trade, such as sugar, tobacco, cotton and coffee. Plantations were characterized by intensive labor systems, relying on enslaved or indentured workers who endured harsh conditions and exploitation.

Scholars emphasize that plantations were central to the accumulation of wealth and capital in the capitalist system, contributing to the rise of European powers and global economic dominance. Plantations were therefore closely intertwined with colonialism, imperialism and resource extraction. They facilitated the unequal global distribution of power and resources, with profits flowing back to the capitalist centers while perpetuating economic disparities and colonial control.

Extractivism

Extractivism, in the Anthropocene, reflects the dominant mode of resource extraction and exploitation driven by capitalism. It is a manifestation of the unequal power dynamics between the Global North and the Global South, perpetuating a colonial legacy of resource appropriation and economic dependency. The disproportionate extraction of natural resources from the Global South to meet the demands of the Global North exacerbates social and environmental injustices.

Extractivism contributes to the acceleration of ecological crises, including climate change, biodiversity loss and environmental degradation. The pursuit of profit through extractive industries disregards the ecological limits of the planet, pushing ecosystems beyond their resilience thresholds and further entrenching unsustainable patterns of production and consumption. The consequences of extractivism disproportionately affect marginalized communities in the Global South, who bear the burden of environmental degradation, land dispossession and the erosion of traditional livelihoods.

Digital capitalism

Digital capitalism operates by mystifying labor as leisure within commercially oriented platforms. Users, seeking connectivity and access to digital services, willingly engage with these platforms, often unaware that their activities and interactions are a form of labor. By constantly sharing personal preferences, creating content and participating in social interactions, users generate valuable data that is harvested, analyzed and commodified by platform owners.

The smartphone has become a powerful tool through which platforms penetrate the intimate spaces of users’ lives, enabling the monetization of traditionally private aspects of human existence. These platforms employ surveillance marketing techniques to extract personal data, exploiting an enormous breach of privacy. Operating under the guise of freedom, social connection and democracy, they create a narrative that encourages users to willingly participate and engage in seemingly leisurely activities.

Users, unaware of the extent to which their privacy is invaded, believe they are enjoying the benefits of convenience and connectivity. However, behind the scenes, their personal lives are meticulously analyzed, mined, and commodified for targeted advertising and consumer narratives. The allure of personalized experiences further tricks users into a cycle that traps them within commercially driven platforms, where their intimate experiences are continuously commodified and monetized.

Digital capitalism is a master at using language and concepts associated with communal and democratic systems, skillfully masking its true nature. Phrases like “decentralization,” “sharing economy,” “social networking,” and “tribal communities” are frequently employed to characterize digital platforms. They paint a picture of an egalitarian space where power is dispersed and everyone has an equal say, a stark contrast to the traditional capitalist model where power is concentrated and hierarchically distributed.

These narratives make platforms seem less commerical and more inclusive and provide  capitalism an illusion of antagonism against its structure. However, underneath these narratives, the mechanisms of capitalism not only remain but become amplified. The ethos of sharing requires surrendering personal data in exchange for services, while the idea of community enables wider data collection and surveillance.