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Industrial Feudalism and Wealth Inequalities

Author

Listed:
  • Hanna Szymborska

    (Birmingham City University)

  • Jan Toporowski

    (SOAS, University of London)

Abstract

The possibility, first raised by Rudolf Hilferding, of stabilizing a capitalist economy through the operations of a 'general cartel', leaving only social and political 'contradictions' to disturb the functioning of the system, gave rise to a discussion among Marxists not only on whether such a stabilization was at all possible, but also on the nature and scope of those contradictions. This discussion had been anticipated in the 1890s in the work of the Polish Marxist Ludwik Krzywicki (1859 - 1941). He put forward the idea that, in a capitalist economy stabilized in this way, a state of 'industrial feudalism' would prevail, in which society would become stratified into social classes without the possibility of mobility between those classes. This analysis was extended in 1940s by Oskar Lange (1904-1965) as he attempted to make sense of the American New Deal and rediscovered in the 1950s by Tadeusz Kowalik (1926-2012). This paper explains the concept of industrial feudalism and argues that the main mechanism for such a stratification today is the unequal distribution of wealth, in the context of declining welfare provision.

Suggested Citation

  • Hanna Szymborska & Jan Toporowski, 2022. "Industrial Feudalism and Wealth Inequalities," Working Papers Series inetwp174, Institute for New Economic Thinking.
    • Handle: RePEc:thk:wpaper:inetwp174
    DOI: 10.36687/inetwp174
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    References listed on IDEAS

    as
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    4. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, December.
    5. Edward N. Wolff, 2014. "Household wealth trends in the United States, 1983–2010," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(1), pages 21-43.
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    Keywords

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    JEL classification:

    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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