Friends,

The Old Money-New Money dynamic is probably the most intricate and difficult part of the analysis I offer on capitalism. That is why we have had to spend so much time on it. And there is still one more point about this I must make.

Who are the Old Money and New Money?

Old Money are the real (titular) or effective aristocracy at the very top of the economic and social pyramid of society. New Money are the class just below them. Indeed we usually find that in order to become New Money, one is most likely born into a family of a certain material and social level.

Though the "rags to riches" tour de force does happen, it is rare. And of course, there is a whole body of statistical data showing how remarkably dynastic class is in America.

The second thing to emphasize is the difference between what Istvan Meszaros, philosopher, marxist, and activist, calls the world capital system (as a whole) and capitalism proper. The latter is only a few centuries old. The former preceded that by thousands of years.

I will define the capital system like this: it is the historical system of the absolute control of wealth, extraction, and distribution of resources literally without democratic or legal accountability (except to the king) to anyone. Sans "markets."

Capitalism: let's call it a system of buying and selling goods and services for a profit, under a structure of democratic accountability and subject of "market" forces, one capitalist in competition with another.

What we mean by capitalists: multinational corporations, banks, and industrial and technological firms, and so forth.

We do not mean the "mom and pop" store, the local karate studio, the corner diner, the family restaurant, and the like. They are, strictly speaking (very strictly speaking), part of the capitalist system, the reality of their effective function are rather like. Their presence in the community is a comforting touchstone. They're just there and it is good.

They do not have the werewithal to even consider thinking about dreaming of becoming nearly as rapacious (its different galaxies) as the multinationals.

And I'll continue with this tomorrow.

wingedcentaur