Rethinking the concept of capitalism: a historian’s perspective

Abstract

ABSTRACTThis essay seeks to rethink the concept of capitalism by focusing on power relationships. Conventionally, capitalism has been treated as being essentially an economic or socio-economic system, whereas recent scholars have highlighted the political process and other underappreciated aspects. I propose that capitalism be redefined as a type of civilization: in essence, as a power structure, in a very wide sense, which is established by a group of people who organize themselves and allocate available resources. It presupposes polity, citizenship, and political process, which, along with property rights, contractual safeguards, and other institutions supporting the market economy, may be called the political foundation of capitalism. As such, capitalism has a highly distinctive feature in that economic power is almost independent of political authority, religious command, or physical violence. This redefined concept has significant implications for understanding the history of capitalism. Above all, it assists in rethinking the framework of interpretation and observing the changing dynamics of international relationships in the modern world. Furthermore, it advances fresh perspectives on American history, specifically on such issues as the transition to capitalism, the fate of the ruling class, the nature of slavery in the antebellum South, and gender in the history of capitalism.