Capital Accumulation and Social Reproduction

Though 35 years old, we find compelling and useful Ross and Trachte locating the evolution of capitalism into three distinct eras: entrepreneurial capitalism (through most of the 19th century), monopoly capitalism (through most of the 20th century), and global capitalism (from 1975 onwards). 127 For them – and us -- the post-1975 era of global capitalism emphasizes the free movement of capital across borders, with multinational corporations operating on a global scale and influencing global trade, production, and labour markets. Ross and Trachte’s view of this phase as dominated by corporate interests, where the demands of the working class are marginalized, public expenditures on supports and services are cut back, and there is stagnating purchasing power of the working class rings true for us today.

During late monopoly capitalism (from 1945 to 1975) -- the “Golden Age of Capitalism -- conditions of work became more regulated, and through collective organization, workers curbed employer power and negotiated better wages and working conditions. Additionally, governments assumed responsibility for welfare services to ensure their equitable distribution. However managed capitalism struggled during the 1970s allowing entry of a new perspective – neoliberalism – that promoted the revival of market forces embodied in government policies of economic globalization, trade liberalization, scaling back of the welfare state, and privatization of publicly held institutions. This new phase of global capitalism brought about declines in union strength, increased job insecurity, and growing income and wealth inequalities. Its effects are now seen as the polycrisis of rising income and wealth inequalities, precarious employment, housing unaffordability, growing food insecurity, and declining access to healthcare. 29

Ross and Trachte’s analysis proved profoundly prescient. Teeple 34 draws similar conclusions as to the effects of neoliberal inspired governance corresponding to their concept of global capitalism as do Labonte and Stuckler. 58 Hallstrom specifies the post-1975 period as implicated in the profound shift in public policymaking in Canada away from redistribution and social spending. 128 As a result the welfare state is now ineffective in balancing capital accumulation and social reproduction, and this is especially so in liberal welfare states.4,29