Imperialism, the Highest Stage of Capitalism #1 - Concentration of Production and Monopolies

Lenin wrote in 1916 a book which I believe should be read by everyone regardless of political belief. The book was published in 1917.

My copy of Imperialism, the Highest Stage of Capitalism

More than a century later I hold this book to be one of the most influential on me, hence why I wish to summarize and analyze for you all and hopefully push you to read it yourself. You can read this book and others like it for free on Marxists.org, if you would like to read along or read in general click here

The book begins with prefaces for the reader. First in Russian, and then French and German for those editions. Lenin writes about how literature was scarce and when exactly he wrote the pamphlet. All prefaces provide more context that Lenin wanted the reader to know and he directly addresses the reader multiple times. He also connects Imperialism to current happenings at the time, namely World War I and Russian Revolution.

Chapter 1 is titled "Concentration of Production and Monopolies." In this chapter, Lenin discusses the economic trends within capitalist societies that he believes have led to the development of imperialism. Keep in mind that at the time, Lenin had seen the rise of Standard Oil and U.S. Steel, both of which dominated the corporate landscape. He gives examples throughout.

Summary

Lenin begins by examining the evolution of capitalism from its early stages to what he considers its highest form, imperialism. He notes that capitalism matures and snowballs from a concentration of production into the emergence of monopolies. He argues that competition among capitalists eventually results in a few large corporations and trusts dominating every corner of industry.

Lenin then says that this concentration of economic power is the natural outcome of capitalist development, driven by the pursuit of maximum profit. Since capitalists seek to maximize returns on investment, they engage in mergers, acquisitions, and the formation of cartels to eliminate competition. They also engage in government corruption with massive influence over policy. This, in turn, leads to the dominance of a few corporations in key sectors of the economy.

Lenin also provides numerous examples such as the banking sector and the formation of industrial trusts in order to illustrate to the reader the trend that he speaks about. He says that smaller businesses are also either pushed out or bought out by bigger enterprises.

Analysis

Historical Context:

Since it was written in 1916 we should examine the historical context of the early 20th century. The emergence of industrial giants such as Standard Oil and U.S. Steel in the United States serves as evidence of the concentration of production. The elephant in the room that is World War I also looms, all the major capitalist powers were involved in fierce conflict and provide a backdrop for Lenin's analysis of imperialism.

Monopolies:

Lenin focuses on the shift from competitive capitalism to monopoly capitalism. He argues that the concentration of production and the emergence of monopolies are inherent features of capitalism and happen by design. He suggests that these trends result from the relentless pursuit of profit and the competitive nature of capitalism, where the smaller companies are absorbed or driven out of business by larger, more powerful ones. This in turn causes monopolization of every industry. A modern example is Amazon, a corporation that now controls a multitude of industries including parcel services, online stores, smart home devices, pharmacies, etc. I'm sure I'm missing something, you get the point.

Economic and Political Power:

Lenin highlights the close connection between economic power and political power. How monopolies control not only industries, but also influence governments and policy to protect their interests. This link is a key feature of imperialism, he explores this more in-depth in further chapters.

Foundation for Imperialism:

Chapter One as a whole serves as a very strong theoretical foundation for understanding imperialism. He posits that the concentration of economic power and monopolies are precursors to the imperialist expansion of capitalist nations seeking new markets, resources, and opportunities for investment. Lenin argues that the concentration of economic power and monopolies create conditions that make imperialism, with its expansionist tendencies, inevitable and a feature.

Marxism:

Lenin's analysis is rooted in a Marxist framework. He interprets the development of monopolies as a manifestation of class struggle within the capitalist system.

Epilogue

Overall, Chapter One sets the economic backdrop for the future chapters in an eloquent, easy way to read. It sets the stage for Lenin's broader argument that imperialism is the highest stage of capitalism, characterized by the dominance of finance capital, the export of capital to foreign markets, and the division of the world among imperialist powers. This chapter emphasizes the economic dimension of imperialism and its impact on the structure of capitalism.