Abstract
In his general analysis of the evolution of capitalism, Marx had posited that industrial capital would subjugate (autonomous) financial capital, older forms of money-lending, on the grounds that interest-bearing capital derives from the capitalist production process (and is therefore ultimately dependent on it) and further that any commercial credit was a secondary function (merely concerned with facilitating circulation) to the value-adding production process (Marx 1971, p.468). It is argued in this chapter that the development of the financial sector, since the industrial revolution, has culminated in a private banking system that is analogous to the feudal money brokerage Marx had in mind. It could, therefore, be gradually subjugated by the productive sector and, any appearance of strength or autonomy would be merely illusory.
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Mouatt, S. (2011). The Corporate Subjugation of Money and Banking. In: Mouatt, S., Adams, C. (eds) Corporate and Social Transformation of Money and Banking. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230298972_6
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DOI: https://doi.org/10.1057/9780230298972_6
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