What is Capitalism

To say that state capitalism is a variety of capitalism may be a tautology, but it brings out the need to be clear on what capitalism is before embarking on any discussion of what state capitalism might be. In this chapter we shall identify the essential features of capitalism and then go on to discuss state capitalism and the nature of the capitalist class. We shall be describing in Marxian terms, concisely but thoroughly, the economic mechanism and set of social relationships that constitute capitalism. We believe Marx’s analysis to be in general still valid even if, as we shall see in the course of this book, the institutional forms of capitalism have changed from those of Britain in the nineteenth century which Marx studied. We can assure readers who may initially find parts of this chapter difficult that if they persevere they will acquire a basic understanding of the key concepts in Marxian economics which will not only allow them to follow better the other, less theoretical chapters but will also equip them to tackle the many other books and articles written these days from a general Marxist theoretical standpoint.