A Theory of Imperialism

Abstract

Abstract The argument developed over the last few chapters suggests that capitalism at its core is indeed a reasonably coherent, durable and successful system. But these characteristics arise for reasons quite different from what either the Walrasians, or neoclassical economists of other persuasions, or even the Keynesians think.They arise be cause of its coupling with outlying regions, with pre-capitalist or semi-capitalist economies. This confers on the system at its core certain benefits of tremendous significance.First, by providing external markets it keeps up the level of activity at a reasonably high tempo for long stretches of time, and thereby boosts the domestic inducement to invest at the core.This results not only in impressive growth rates in output and productivity, which permit significant increases in real wages at the core, but also in a situation where resort to external markets via export surpluses do not have to be a perennial feature of the system.