[Namsan Ddalggakbari] Is Capitalism Really Without Alternatives?

"Questioning the Inevitability of Capitalism
Analyzing Crises through Marxist Economics and Geography
'Uncontrolled Capital Ultimately Destroys Workers and Land, the Sources of Wealth'"

[Asia Economy Reporter Naju-seok] ‘TINA (There Is No Alternative)’ became famous after being used by former British Prime Minister Margaret Thatcher. It means ‘there is no alternative.’ It was often used to mean ‘there is no alternative to capitalism.’ In fact, with the collapse of real socialism such as the Soviet Union, capitalism became an unquestionable and obvious reality.

David Harvey, a British geographer and Marxist theorist, questions the solidity of capitalism in his book Capitalism is Not Inevitable. He asks whether capitalism is truly inevitable by citing examples of mass mobilizations around the world, such as protests against subway fare hikes that evolved into constitutional amendments under military dictatorship in Chile, the Black Lives Matter (BLM) movement for Black rights, and the changed social landscape in the COVID-19 era.

During the 2008 financial crisis, the U.S. government spent money to save financial institutions that caused the crisis through greed rather than the citizens who were at risk of losing their homes. As a result, the top 1% earned large sums of money through bailout support. Meanwhile, poor citizens suffered the pain of losing their homes. Financial institutions bought houses that ordinary people sold at low prices and resold them at high prices, making profits.

In this miserable reality, there was no alternative, or TINA. Harvey questions whether capitalism can continue to be inevitable. He analyzes the crisis of capitalism based on Marxist economics and geography, interpreting Marx’s theory?which fundamentally faces contradictions?in a modern context.

According to him, capital inherently pursues growth. The growth rate is steep because it is compounded. Considering the growth pattern of the global economy, which operates on a scale of $80 trillion (approximately 95,400 trillion KRW), it is difficult to maintain this indefinitely.

He warns, “A contradiction of capital appears: it is too big to collapse, yet too monstrous to survive.” Marx viewed capitalists as a group that creates profit by reducing workers’ wages. This leads to the contradiction that workers with thinner wallets cannot purchase goods.

Harvey explains why capitalism, despite its incompatibilities, has been able to persist through geography and finance. First, he mentions the economy of ‘debt,’ the view that poor individuals or countries increased consumption by borrowing, which kept the market functioning. Another factor is the ‘spatial solution’ in the form of colonies or overseas markets. He argues that capitalism opened markets and opportunities as it expanded globally.

Interestingly, the U.S. economy took the lead by investing capital in the British market. The growth and global expansion of economies such as Korea, Germany, and Japan were also backed by U.S. investment and support. China similarly went through a comparable process to integrate into the market and grow, eventually reaching a position to compete with the U.S.

The problem is that the global economy has been pushed into a growth crisis as it has become difficult to find places outside capitalism. The growth-oriented capitalism inevitably causes issues such as the climate crisis, which darkens future prospects. Harvey warns, “Uncontrolled capital ultimately destroys its two sources of wealth: workers and land.”

What is the alternative? Even Harvey, who analyzed the crisis of capitalism through Marxist economics, does not present a clear solution. He finds new possibilities in the crisis situation caused by COVID-19. He explains that various emergency measures taken during this unprecedented human crisis allow us to consider alternatives to capitalism.

In the past, Marx said, “A truly wealthy country is not one where the working day is 12 hours, but one where it is 6 hours. Wealth does not come from controlling surplus labor time, but from the time that each individual and society as a whole can use beyond the time necessary for direct production.” It was a paradoxical statement that society should move toward a free and wealthy society where individuals can do what they want.

Harvey argues that the COVID-19 crisis offers an opportunity to enhance leisure, which signifies human ‘freedom’ and real ‘wealth.’ He devotes many pages to breaking the prejudice against Marx’s theory, which has been forgotten by the public, and seeking its modern meaning. Because the book is based on a podcast, its overall structure is not very refined. The focus on modern interpretation and meaning of Marx’s theory sometimes leads to excessive bias in certain sections.