Is The “Arc” of Capitalism Coming To Its End”

(MORRIS BERMAN, Counterpunch, September 20, 2012)
[CLICK the above credit line for the full article . . . this is only a summary . . . highly recommend reading the entire story via the link above.]

An important derivative of the Annales research is the work of the World Systems Analysis school, including Immanuel Wallerstein and Christopher Chase-Dunn, which similarly focuses on long-term structures: capitalism, in particular. . . . The “arc” of capitalism, according to this school, is about 600 years long, from 1500 to 2100. It is our particular (mis)fortune to be living through the beginning of the end, the disintegration of capitalism as a world system. It was mostly commercial capital in the sixteenth century, evolving into industrial capital in the eighteenth and nineteenth centuries, and then moving on to financial capital—money created by money itself, and by speculation in currency—in the twentieth and twenty-first. In dialectical fashion, it will be the very success of the system that eventually does it in. . . . The last time a change of this magnitude occurred was during the fourteenth and fifteenth centuries, during which time the medieval world began to come apart and be replaced by the modern one. . . . the whole climate change debate is a serious threat to capitalism. The Left, she says, wants to soft-pedal the implications; it wants to say that environmental protection is compatible with economic growth, that it is not a threat to capital or labor. It wants to get everyone to buy a hybrid car, for example (which I have personally compared to diet cheesecake), or use more efficient light bulbs, or recycle, as if these things were adequate to the crisis at hand. But the Right is not fooled: it sees Green as a Trojan horse for Red, the attempt “to abolish capitalism and replace it with some kind of eco-socialism.” . . . Naomi Klein writes: “The expansionist, extractive mindset, which has so long governed our relationship to nature, is what the climate crisis calls into question so fundamentally. The abundance of scientific research showing we have pushed nature beyond its limits does not just demand green products and market-based solutions; it demands a new civilizational paradigm, one grounded not in dominance over nature but in respect for natural cycles of renewal—and acutely sensitive to natural limits….These are profoundly challenging revelations for all of us raised on Enlightenment ideals of progress.” . . . The Occupy movement, as far as I could make out, wanted to restore the American Dream, when in fact the Dream needs to be abolished once and for all. . . . What then, can we expect, as the arc of capitalism comes to a close? This is where Naomi shifts from unlikely recommendations to hard-nosed reality. She writes: “The corporate quest for scarce resources will become more rapacious, more violent. Arable land in Africa will continue to be grabbed to provide food and fuel to wealthier nations.  Drought and famine will continue to be used as a pretext to push genetically modified seeds, driving farmers further into debt. We will attempt to transcend peak oil and gas by using increasingly risky technologies to extract the last drops, turning ever larger swaths of our globe into sacrifice zones. We will fortress our borders and intervene in foreign conflicts over resources, or start those conflicts ourselves. ‘Free-market climate solutions,’ as they are called, will be a magnet for speculation, fraud and crony capitalism, as we are already seeing with carbon trading and the use of forests as carbon offsets.  And as climate change begins to affect not just the poor but the wealthy as well, we will increasingly look for techno-fixes to turn down the temperature, with massive and unknowable risks….As the world warms, the reigning ideology that tells us it’s everyone for themselves, that victims deserve their fate, and that we can master nature, will take us to a very cold place indeed.”

To put it bluntly, the scale of change required cannot happen without a massive implosion of the current system. This was true at the end of the Roman Empire, it was true at the end of the Middle Ages, and it is true today. . . .  I personally never visited Zuccotti Park, but most of what I saw on the Web, including very favorable reportage of the Occupy movement, seemed to suggest that the goal was a more equitable American Dream, not the abolition of the American Dream, as I indicated above. In other words, the basic demand was that the pie be cut up more fairly. I never had the impression that the protesters were saying that the pie, in toto, was rotten. This reminds me of an anecdote about Martin Luther King, who apparently said to Harry Belafonte, just before he (i.e., King) was assassinated, that he thought he might have been making a big mistake; that he sometimes felt like he was herding people into a burning church. This is a very different insight, quite obviously, than the notion that black people should be getting a larger share of the pie. After all, who wants a larger share of a rotten pie, or to live in a church that is burning down? . . . as the system collapses, alternatives are going to become increasingly attractive; and you can be sure that 2008 is not the last crash we are going to live through. The two sides go hand in hand, and ultimately—I’m talking thirty to forty years, but maybe less—the weight of the arc of capitalism will be too onerous to sustain itself. In la longue durée, one is far smarter betting on the alternative worldview than on capitalism. Thus the biologist David Ehrenfeld writes: “Our first task is to create a shadow economic, social, and even technological structure that will be ready to take over as the existing system fails.” . . . After all, writes Magnuson, “permanent growth means permanent crisis.” Or as I have put it elsewhere, our job is to dismantle capitalism before it dismantles us. Again, this does not mean taking on Wall Street, which I don’t believe can succeed. But it does mean leaving the field: for example, seceding. (Movements for secession do exist at this point, Vermont being a prominent example.) And if that’s not quite viable right now, there is at least the possibility of living in a different way, as David Ehrenfeld suggests. My guess is that “dual process”—the disintegration of capitalism and the concomitant emergence of an alternative socioeconomic formation—is going to be the central story of the rest of this century. And I suspect that austerity will be part of this, because as capitalism collapses and we run out of resources—petroleum in particular—what choice will we have? . . . This does not, it seems to me, necessarily mean a return to some type of feudalism; although that could well happen, for all I know. But we are finally talking about the passing not only of capitalism, but of modernity in general—the waning of the modern ages, in effect. In her interesting biography of the Hegelian scholar, Alexandre Kojève, Shadia Drury writes: “Every political order, no matter how grand, is doomed to decay and degenerate.” As for modernity in particular, she goes on: “[M]odernity’s inception and its decline are like those of any other set of political and cultural ideals. In its early inception, modernity contained something good and beguiling. It was a revolution against the authority of the Church, its taboos, repressions, inquisitions, and witch burning. It was a new dawn of the human spirit—celebrating life, knowledge, individuality, freedom, and human rights. It bequeathed to man a sunny disposition on the world, and on himself….The new spirit fueled scientific discovery, inventiveness, trade, commerce, and an artistic explosion of great splendor. But as with every new spirit, modernity has gone foul….Modernity lost the freshness and innocence of its early promise because its goals became inflated, impossible, and even pernicious. Instead of being the symbol of freedom, independence, justice, and human rights, it has become the sign of conquest, colonialism, exploitation, and the destruction of the earth.” . . .
In a word, its number is up, and it is our fortune or misfortune, as I said before, to be living during a time of very large, and very difficult, transition. An old way of life dies, a new one eventually comes into being.