Thoughts on Vulture Capitalism by Grace Blakeley
Thoughts on Vulture Capitalism by Grace Blakeley.
Recently, I was talking to a friend about the manifold failures of our current economic and political situation. Given that capitalism is a common feature in many of the current crises, I suggested that capitalism could be the problem. Maybe, he replied, but what is the alternative?
That’s a very valid question that requires an understanding of capitalism to answer. It’s not possible to propose alternatives until we understand what we are talking about.
Blakeley deals with the nature of capitalism very early in this book. She states that “capitalism is defined by the class division between owners and workers; between those who own all the stuff needed to produce commodities, and those forced to work to produce those commodities”.
This is a really important distinction. Capitalism is not about free markets, as many people think; it is about a power relationship between those who control the means of production, the means to get things done, and those who don’t. Because controlling the means of production gives you the upper hand, capitalism is inevitably a system in which those who own the means of production are dominant. This is a classical Marxist analysis. Blakeley writes from a left-wing point of view, which is quite refreshing in itself. We live in a time when socialism is kept under wraps, for fear that it might cause alarm.
Markets, free or otherwise, predate capitalism by thousands of years. As soon as people were living in civilised societies, they started to specialise in certain trades and so needed to meet people who could supply the things they needed and who might buy the things they produced. Historically, marketplaces are not capitalism, they are trade, they are an aspect of civilisation.
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The book is full of eye-opening explanations of ideas that we tend to take for granted. Flag bearers for capitalism like to evoke the idea of plucky entrepreneurs taking on all odds and building a fortune. This is rarely the case, at least it is rarely the place where real wealth and power reside. Early capitalist ventures like the East India Company were business ventures that received the active support of the state. The internet revolution of the last few decades is based squarely on the development of ARPANET, the resilient communications network developed by the US military during the Cold War. The state underpins capitalism and provides the platform on which capital operates.
Blakeley presents capitalism as a set of power relations in which those who are rich and powerful leverage that wealth and power to achieve further wealth and power. They do this by working with other capitalists with similar interests. They co-opt the resources of the state to work to their advantage. They establish exclusive networks of power to prevent anyone who might damage their plans from any position of power. They use these networks to dominate the media space, government and finance.
For many people, presenting capitalism in this way, will come as a surprise. After all, free markets …
But consider how capitalism plays out in our daily lives. Banks that are “too big to fail” get bailed out by the state, whilst smaller companies go into administration. Massive frauds like the non-delivery of COVID-19 PPE by companies linked to politicians are not prosecuted. Big corporations like oil companies use complex business arrangements to avoid cleaning up the horrific pollution they leave behind. There are so many examples of wealth and power behaving badly and legally avoiding their responsibilities that we are led to the conclusion that this is how the system works. These “failures” are not failures at all, this is the system. This is exactly what Blakeley is arguing. Capitalism is wealth and power, capital, cooperating to realise more wealth and power. Even when this cooperation looks brutal, destructive and heartless, this is how capitalism works.
Blakeley argues that capitalism is a system that benefits the few. All the rest of us have to scramble for the crumbs that are left over after the rich have taken what they want. Capitalism is not a system that encourages entrepreneurship. It protects those with wealth and power, not those who aspire to it. Entrepreneurship is the exception to how the system operates.
I was deeply impressed by this book. It is impeccably researched, citing a wide range of sources. Difficult and complex ideas are presented in a highly readable style. Blakeley offers an experience of revelation to her readers. She also offers some alternatives.
This concept of capitalism suggests an all-consuming force, but it relies on the compliance of the mass of people to continue its dominance. Ordinary people have to believe that capitalism is the only option, even when it works against their interests. Capital puts enormous effort into controlling the narrative and preventing the discussion of any alternative. This is why billionaires buy newspapers and media outlets, to control what they are saying. Capitalism’s greatest fear is that ordinary people will get together, realise they are being duped and take action collectively.
Blakeley ends the book by setting out how democratic socialism offers an alternative way of organising society. Her vision is of a genuinely democratic society, where a well-informed demos takes responsibility for their community and makes collective decisions as close to the lives of ordinary people as possible.
Above all, this book is a plea to join the dots. Capitalism is the driving force across the world. It benefits a small group of people. Everyone else and the planet we live on suffer from this arrangement. The failings of this system are now more obvious than ever, as rampant inequality and ecological degradation make for a bleak future. It’s time for change, and here are the alternatives.
