Wednesday October 22nd, 2014, 12:54 am (EDT)

Monopoly Capital

An Essay on the American Economic and Social Order

Monopoly Capital by Paul Baran and Paul Sweezy
Paperback, 401 pages
ISBN: 0-85345-073-0
Released: January 1966
Price: $23

This landmark text by Paul Baran and Paul Sweezy is a classic of twentieth-century radical thought, a hugely influential book that continues to shape our understanding of modern capitalism.

All the basic ideas of Marx’s great work Das Kapital were formulated from 1840 to 1865, the heyday of competitive capitalism in Britain which was then by far the world’s leading economic power; and it was natural that Marx should focus his attention on this system. In his work, monopoly appears only occasionally, as a remnant of a mercantilist past or as a shadow cast by a future he did not expect capitalism to live to see.

Yet capitalism did live to see that future. In the decades after Marx’s death, monopoly, in the shape of giant corporations linked together by a network of financial institutions, moved to the center of the stage. This momentous fact was recognized by Hilferding, and it was Lenin’s genius to make it the foundation stone of his theory of imperialism. Yet paradoxically enough, the impact of this profound economic transformation was felt least of all in the area most immediately affected: Marxian economic theory. Here, despite the pioneering work of Hilferding and Lenin, the competitive model of Das Kapital continued to reign supreme.

The authors of this book reconsider this traditional approach to economic theory. In order to follow Marx’s own example and to make the most fruitful use of his powerful analytical method, it has become necessary to shift the focus of attention. For in the present stage of world capitalism, and most especially in the United States, the giant monopolistic (or oligopolistic) corporation has become the dominant entity, and this fact has an overriding significance for an understanding of the system’s modus operandi.

The purpose of Monopoly Capital is to effect this shift in the focus of attention from competition to monopoly. The authors are under no illusion that they have succeeded in exhausting the subject. They had no such ambitious goal. Their purpose and hope is to help people to see present-day capitalist society differently and more realistically, to highlight the central problems which need to be tackled and solved, and to indicate directions in which further study and thought are needed.

This book … deals with a vital area of economics, has a unique approach, is stimulating and well written. It represents the first serious attempt to extend Marx’s model of competitive capitalism to the new conditions of monopoly capitalism.

—Howard J. Sherman, American Economic Review

Baran and Sweezy have produced an appraisal of American society … that is totally at odds with the interpretation of American society we find in the books of most professors … unlike most books we read, this one attacks prevailing beliefs at their roots.

—Robert L. Heilbroner, New York Review of Books

A brilliant description of the economic forces at work in the main centers of economic power—the giant corporations … Monopoly Capital may be regarded as an analysis of the sources of contemporary political formations … and the corporate ideology … Monopoly Capital will be a munificent source of insights and ideas for many years to come.

—James O’Connor, The Nation

This is in every way a stimulating and refreshing books, written lucidly and easily, without jargon or dogma, and representing a welcome attempt to look at the monopoly capitalism of today with fresh eyes. Merely as exposition, rendering what are often quite difficult problems accessible to the layman, it is something of a tour de force. For comprehensive sweep, topicality, and quality of thought we have not had its equal in Marxian economic literature for a very long time.

—Maurice Dobb, Science & Society

Paul M. Sweezy (1910-2004) was born in New York City, educated at Exeter and Harvard, and after receiving his Ph.D. in 1937 went to the London School of Economics, to Vienna, and to other places on the Continent for graduate study. He taught economics at Harvard until 1946 and was visiting professor of economics at Cornell, Stanford, and the New School. He was a founding editor of Monthly Review and author of Monopoly Capital (with Paul Baran) and The Theory of Capitalist Development, among many other books and articles.

Paul A. Baran (1909-1964) was Professor of Economics at Stanford University. Born in the Ukraine, he was educated in Germany and the Soviet Union, and moved to the United States on the eve of the Second World War. After wartime military service, he joined the staff of the Federal Reserve Bank of New York, leaving to become a member of the Stanford economics faculty in 1949. He was a frequent contributor to Monthly Review, co-author (with Paul M. Sweezy) of Monopoly Capital, and author of The Political Economy of Growth and The Longer View.

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