Imperialism: The Highest Stage of Capitalism

Lenin’s Imperialism stresses capitalism’s concentration and centralization of the means of production—principally capital and land—to amass great wealth and power into the hands of the few. Lenin is explicit: “The enormous growth of industry and the remarkably rapid concentration of production in ever-larger enterprises are one of the most characteristic features of capitalism” (18). Industry and the industrial revolution of the 19th century set the stage for late-stage capitalism.

In late-state capitalism, the way banks operate changes. In earlier times banks served as repositories. They acted as the middlemen for increasingly liquid transactions as economies evolved from trade and barter systems to systems that relied on fiat currency, where the government dictates the currency’s value. With the rise of capitalism, banks increasingly use wealth for speculation and investing. They concentrate wealth in fewer hands until they have “almost the whole of the money capital of all the capitalists” at their disposal (36).

Once the banks gain control of wealth, bank capital becomes finance capital. The largest and most powerful corporations can manipulate the stock market and exploit investment opportunities, especially in colonial territories where labor is cheap, maximizing profits at the expense of the proletariat. When surplus capital is created, its concentration is increased even further; it is not poured back into the community or the economy to increase the standard of living. Instead, it is used to pad the pockets of the oligarchy and banks.