Origins of the Word Capitalism: Thackeray not Marx?
Robert Lawson writes:
Recently I was explaining to a friend why I generally refrain from using the word "Capitalism":
"My reasoning is mostly tactical. The word was first coined by Marx and continues to be used as a pejorative by the left. 'Capitalism' as a term implies to me that capital is special and that the owners of capital, the capitalists, are therefore the special beneficiaries of the system. This of course was Marx's view. Even today, to many people capitalist = fat cat. But the fact is that 'capital' as a factor of production plays no more of a special role in a market economy than any other factor. You and I would argue that the real beneficiaries of the system are consumers and laborers. It would in my book be more accurate to say "laborism" than "capitalism".
Comment
I am not sure that Karl Marx invented the word ‘capitalism’; he certainly began using early, particularly in volume 1 of ‘Capital’, or at least his editors of the Moscow edition sprinkle his text liberally with it (from memory).
The Oxford English Dictionary, considered an authority on the English language, credits William Makepeace Thackeray for the first published use of the word ‘capitalism’ in his novel, The Newcomes (1853-55), though it is clear from its context that this refers to finance capital, rather than as a ‘system’. Financiers in 19th century novels tend to get a bad press; see Trollope’s ‘The Way We Live Now’.
The origin of the word ‘capitalist’ is of much earlier vintage: in French, A. R. J. Turgot (1727-1781) used ‘capitaliste’ in his essay, ‘Reflection on the Formation and Distribution of Wealth’ (1769-1770), and WilliamGodwin used its English version, ‘capitalist’, in his Political Justice (1794).
I take Robert Lawson’s point about the word capitalist over emphasizing its importance as the main factor of production, though I am not so sure that ‘laborism’ is a better alternative because it is another factor. I would have thought that ‘consumer’ is better than ‘capitalist’ and ‘labourer’ (two factors) bearing in mind that Adam Smith considered the consumer was the sole purpose of production (perhaps ‘consumerism’?).
Still, Smith called his fourth age of man, ‘commerce’ (after Hunting, Shepherding and Farming), and I have long preferred to name it as he did, despite the differences between the elements that he considered were important in the commercial economy and the mass consumer societies that have followed. Just a thought.
[Read the ‘Division of Labour’ Blog, to which Robert Lawson is a regular contributor, at: http://www.divisionoflabour.com/]
Recently I was explaining to a friend why I generally refrain from using the word "Capitalism":
"My reasoning is mostly tactical. The word was first coined by Marx and continues to be used as a pejorative by the left. 'Capitalism' as a term implies to me that capital is special and that the owners of capital, the capitalists, are therefore the special beneficiaries of the system. This of course was Marx's view. Even today, to many people capitalist = fat cat. But the fact is that 'capital' as a factor of production plays no more of a special role in a market economy than any other factor. You and I would argue that the real beneficiaries of the system are consumers and laborers. It would in my book be more accurate to say "laborism" than "capitalism".
Comment
I am not sure that Karl Marx invented the word ‘capitalism’; he certainly began using early, particularly in volume 1 of ‘Capital’, or at least his editors of the Moscow edition sprinkle his text liberally with it (from memory).
The Oxford English Dictionary, considered an authority on the English language, credits William Makepeace Thackeray for the first published use of the word ‘capitalism’ in his novel, The Newcomes (1853-55), though it is clear from its context that this refers to finance capital, rather than as a ‘system’. Financiers in 19th century novels tend to get a bad press; see Trollope’s ‘The Way We Live Now’.
The origin of the word ‘capitalist’ is of much earlier vintage: in French, A. R. J. Turgot (1727-1781) used ‘capitaliste’ in his essay, ‘Reflection on the Formation and Distribution of Wealth’ (1769-1770), and WilliamGodwin used its English version, ‘capitalist’, in his Political Justice (1794).
I take Robert Lawson’s point about the word capitalist over emphasizing its importance as the main factor of production, though I am not so sure that ‘laborism’ is a better alternative because it is another factor. I would have thought that ‘consumer’ is better than ‘capitalist’ and ‘labourer’ (two factors) bearing in mind that Adam Smith considered the consumer was the sole purpose of production (perhaps ‘consumerism’?).
Still, Smith called his fourth age of man, ‘commerce’ (after Hunting, Shepherding and Farming), and I have long preferred to name it as he did, despite the differences between the elements that he considered were important in the commercial economy and the mass consumer societies that have followed. Just a thought.
[Read the ‘Division of Labour’ Blog, to which Robert Lawson is a regular contributor, at: http://www.divisionoflabour.com/]
posted by Gavin Kennedy at 8:33 PM
2 Comments:
I too thought it was Marx, interesting. Thank you.
www.deeplyimbedded.com
www.savethebeesshirts.com
I agree that "capitalism" is a misleading term, but I am surprised to see that no one is mentioning "the free market" (which is a sylable shorter) or "free enterprise" as an alternative. Or "economic freedom."
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