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*. 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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It seems, instead, that the dominance of the US model of finance- which is an extremely marketised system based on speculation rather than commitment- has prevailed in the neoliberal decades. Part of a series on. However, certain elements of it now appear dated.

Rudolf Hilferding – Wikipedia

In a short time, Hilferding took a leading role in the paper and was soon appointed editor-in-chief. The latter only became reactionary in practice, rather than in theory. He observes with a cold and steady eye the medley of peoples and sees his own nation standing over all of them.

He spends some time discussing different types of concentration. 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 contracts 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.

In fact, the SPD leadership opposed socialization at this point since the armisticedemobilisation of the army and feeding the German people seemed more pressing issues at the time. On the continent, however, it was a matter of land power, not sea power. The need to create a national state was bound to make the bourgeoisie from the very beginning a champion of the state.

He was born in Viennawhere he received a doctorate having studied medicine.

Rudolf Hilferding, Finance Capital ()

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. In this, Hilferding saw an opportunity for a path to socialism that was distinct from the one foreseen by Marx: As a university student, he became acquainted with many talented socialist intellectuals. Skip to main content. On the other hand, England’s victory necessarily led industrial capital in continental Europe to support the protective tariff, totally frustrated the advance of economic liberalism, and created the conditions needed for a rapid development of finance capital on the continent.


Hilferding highlights the fact that industrial capitalism has been replaced by financial capitalism. On 10 AugustRudolf Hilferding was born in Vienna into a prosperous Jewish family, [2] [9] consisting of his parents, Emil Hilferding, a merchant or private servantand Anna Hilferding, and of Rudolf’s younger sister, Maria.

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.

As Lapavitsas has since argued, this idea has been a little confounded by the fact that it was the US model that emerged as the next global hegemon, rather than Germany. Together with Karl Kautsky he formulated the Heidelberg Program in But imperialism only dissolves the faded ideals of the bourgeoisie in order to put in their place a new and greater illusion.

For him this nation is real; it lives in the ever increasing power and greatness of the state, and its enhancement deserves every ounce of his effort.

The imperialist wants nothing for himself, but he is also no visionary calital dreamer who would dissolve the tangled profusion of races at every level of civilization and of potentiality for further development, into the bloodless concept of ‘humanity’, instead of seeing them in all their colourful reality.

The government’s lack of support was the reason why ifnance committee was disbanded in April What an illusion it is, in the world of capitalist struggle where superiority of weapons is the final arbiter, to believe in a harmony of interests. The common action of the nation, united by a common goal of national greatness, has taken the place of class struggle, so dangerous and fruitless for the possessing classes.

Rudolf Hilferding

Perhaps most importantly and as implied by the titleHilferding failed to realise that retail would come to dominate productive capital rather than the other way around. He later described the USSR as “the first totalitarian state” and a “totalitarian state economy”. Rudolf Hilferding 10 August — 11 February was an Austrian-born Marxist economist, leading socialist theorist, [1] politician and chief theoretician [2] for the Social Democratic Party of Germany SPD during the Weimar Republic[3] almost universally recognized as the SPD’s foremost theoretician of his century, and a physician.

Even before his school leaving examinations, in he joined a group of Vienna students that weekly discussed socialist literature and later formed with young university teachers the student-organization Freie Vereinigung Sozialistischer Studentenwhose chairman was Max Adler.


The latter face disaster if an investment makes lower than average profits in the short term. Books for Libraries Press. 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.

Lutz Graf Schwerin von Krosigk. The final chapter of this section is interesting. He had to give up this job and was replaced by Rosa Luxemburg [23] after being threatened with eviction by the Prussian police in More fundamentally for TEMS, he is also suggesting that as capitalism develops marketization and the regulatory prominence of the price mechanism diminishes- which seems to run counter to some of our guiding assumptions.

One thing he does do here is expand the idea of disruption in the circulation process, which Marx introduces in Volume II. The whole painfully constructed system of dependent relationships on the land, and of guild associations with their complex superstructure of privileges and monopolies in the towns, was thrown overboard. Unlike interest-bearing capital, shareholders only get a claim to a future proportion of profit. In this sense, the stock exchange is a mechanism of totalizing marketization.

Finance capital abandoned this belief long ago. But while he anticipated these debates, his error was to imagine that capitalism- driven by its own internal laws of motion- was on a trajectory from market-based finance to bank-based finance. It is clear-headed and sober in evaluating the real conflicts among capitalist interest groups, and it conceives all politics as a matter of capitalist syndicates either fighting or combining with each other.

Thus the needs of finance capital found various ideological elements to hand which could easily be used for creating a new ideology in harmony with its own interests. Later on, however, he suggests that monopolies and cartels are more likely to survive depressions and crises, while smaller businesses go to the wall.