Introduction: Capitalist Moral Philosophy, Narrative Technology, and the Boundaries of the Nation- State
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Notes Introduction: Capitalist Moral Philosophy, Narrative Technology, and the Boundaries of the Nation- State 1. Karl Polanyi, The Great Transformation (Boston: Beacon Press, 1944), 84. 2. Polanyi, Great Transformation, 84. 3. Emma Rothschild, Economic Sentiments: Adam Smith, Condorcet, and the Enlightenment (Cambridge, MA: Harvard University Press, 2001). Joseph Schumpeter also down- plays Smith’s significance, viewing him mainly as a compiler of other economists’ insights: see History of Economic Analysis, ed. Elizabeth Boody Schumpeter (Oxford University Press, 1954), 184–6. 4. The terms ‘capital’ and ‘capitalist’ are used throughout the nineteenth century: E. P. Thompson, for example, quotes ‘A Journeyman Cotton Spinner’ attacking ‘over- grown capitalists’ in an 1818 issue of The Black Dwarf: see The Making of the English Working Class (New York: Vintage, 1963), 202. However, the word ‘capitalism’, as a system with its own organic or mechanical logic that can be contrasted with others, does not come into common use until the mid- nineteenth century. The Oxford English Dictionary credits William Makepeace Thackeray with the term’s first use in The Newcomes (1854): ‘The sense of capitalism sobered and dignified Paul de Florac (II, 75).’ In Marx’s work, the idea of an internally coherent capital- ist system of production is clear by the 1848 Communist Manifesto, but he may not have used the word ‘Kapitalismus’ in any of his published works. According to Meghnad Desai, Marx only used the word once, in a letter to a Russian corre- spondent: see Marx’s Revenge: The Resurgence of Capitalism and the Death of Statist Socialism (London: Verso, 2002), 46. Earlier, the idea of international finance as an organized, predatory, urban- industrial system is popularized by William Cobbett, whose 1830 Rural Rides refers to London as ‘the Wen’ on a sickly body politic: ‘It is the destructive, the murderous paper-system, that has transferred the fruit of the labour, and the people along with it, from the different parts of the country to the neighbourhood of the all-devouring Wen’: Rural Rides, ed. George Woodcock (Harmondsworth: Penguin, 1967), 81. See also Schumpeter, History of Economic Analysis, 552; and Raymond Williams, Keywords, revised edn (Oxford University Press, 1983), 50–2. 5. For a recent critique of the ‘theology’ of economics, see Duncan K. Foley, Adam’s Fallacy: A Guide to Economic Theology (Cambridge, MA: Harvard University Press, 2006). Perhaps the most visible sign of Smith’s resurgent status as icon is the famous Adam Smith tie worn by members of the Reagan administration in the 1980s. In his eulogy for Reagan in 2004, Bruce Chapman recalled that ‘You had a wide range of choices: there were green Adam Smith neckties, maroon Adam Smith neckties, red, white and blue Adam Smith neckties. For a while, I didn’t think Ed Meese owned any other kind of tie. There were even Adam Smith scarves for the women.’ 6. See, for example, Ralph Davies, who notes that ‘organisation of capitalist lines was steadily making headway’ by the sixteenth century: The Rise of the Atlantic Economies (Ithaca: Cornell University Press, 1973), 24. 198 Notes to Introduction 199 7. The idea that capitalism is a kind of ‘creative destruction’ runs through The Communist Manifesto, but the term itself comes from Joseph Schumpeter, who identifies it as a ‘process of industrial mutation ... that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, inces- santly creating a new one’. See Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper Torchbooks, 1976), 83. 8. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, ed. R. H. Campbell and A. S. Skinner, 2 vols (Indianapolis: Liberty Fund, 1981), 1: 456, reprinted in paper from the Oxford edition of 1976. Subsequent references will appear as WN. 9. One of the most trenchant analyses of this tension is Marshall Berman’s All That is Solid Melts Into Air, which argues that nineteenth-century thinkers such as Goethe, Nietzsche, Kierkegaard, and Mill had a far more ‘ironic and contradic- tory, polyphonic and dialectical’ (23) response to economic modernism than those of the twentieth century, who either ‘embraced [modernity] with a blind and uncritical enthusiasm, or else condemned [it] with a neo- Olympian remote- ness and contempt; in either case, it is conceived as a closed monolith, incapable of being shaped or changed by modern men’ (24). Marshall Berman, All That is Solid Melts Into Air: The Experience of Modernity (Harmondsworth: Penguin, 1982). 10. Thomas Frank notes that in the 1990s ‘market populism’ made this implicit equation of God and the markets much more explicit, resulting in a media cult of tech billionaires who acted like ordinary people – but a cult lacking Smith’s concern with distributional justice for the poor, which Michael Ignatieff and Istvan Hont analyse in their essay on ‘Needs and Justice in the Wealth of Nations’, in Wealth and Virtue: The Shaping of Political Economy in the Scottish Enlightenment, ed. Hont and Ignatieff (Cambridge University Press, 1983), 1–44. See Thomas Frank, One Market Under God: Extreme Capitalism, Market Populism, and the End of Economic Democracy (New York: Anchor Books, 2000). 11. An ‘emergent’ system is one that evolves a complex order out of a few simple rules rather than a top-down hierarchy, and can be seen to adapt to its environ- ment in productive ways that are visible on the macro level. Steven Johnson’s 2001 Emergence is a fascinating introduction to this intellectual concept and its application to the fields of urban planning, biology, and internet marketing, while Mark Taylor’s 2004 Confidence Games argues that economic theory has not yet caught up with the ways emergent orders in global finance can implode as well as expand. Both Johnson and H. Porter Abbott note that this concept resembles social theories of the late nineteenth century: Johnson says that ‘You can see the last ten years or so as a return to those Victorian webs’ originally sug- gested by ‘Darwinian and social reform movements’ (22) while Abbott traces the word ‘emergence’ to George Henry Lewes’s 1874–79 Problems of Life and Mind. See Johnson, Emergence: The Connected Lives of Ants, Brains, Cities, and Software (New York: Scribner, 2001); Taylor, Confidence Games: Money and Markets in a World Without Redemption (University of Chicago Press, 2004); Abbott, ‘Narrative and Emergent Behavior’, Poetics Today 29.2 (2008), 228 n. 2. 12. Ian Watt, The Rise of the Novel (Berkeley: University of California Press, 1957), 60. 13. Jane Smiley, Thirteen Ways of Looking at the Novel (New York: Alfred A. Knopf, 2005), 26; Nancy Armstrong, How Novels Think: The Limits of Individualism from 1719–1900 (New York: Columbia University Press, 2005), 4–5. 200 Notes to Introduction 14. Georg Lukács, The Historical Novel, trans. Hannah and Stanley Mitchell (Boston: Beacon Press, 1962), 35. 15. Raymond Williams, Culture and Society 1780–1950 (New York: Columbia University Press, 1983); Raymond Williams, The Country and the City (Oxford University Press, 1973), 165. 16. Fredric Jameson, The Political Unconscious: Narrative as a Socially Symbolic Act (Ithaca: Cornell University Press, 1981). 17. F. R. Leavis’s appreciation in The Great Tradition of Dickens’s Hard Times, alone among Dickens’s novels, can perhaps be seen as a projection of this sort: see ‘Hard Times: An Analytic Note’, The Great Tradition: George Eliot, Henry James, Joseph Conrad (New York University Press, 1963), 277–48. See also Igor Webb, From Custom to Capital, which caricatures Smith as an industrial apologist: ‘Smith’s whole mode of thought was permeated by what Ruskin later called mercantile language’: From Custom to Capital: The English Novel and the Industrial Revolution (Ithaca: Cornell University Press, 1981), 31. Raymond Williams’s Culture and Society, with its historical survey of Victorian and modern cultural critique, was one of the first critiques of the romantic separation of high culture from suppos- edly more sordid economic affairs. 18. See, for example, Catherine Gallagher’s 1985 work The Industrial Reformation of English Fiction, a virtuoso formalist approach to the industrial novels of the 1840s that reads these novels through the patriarchal critiques of Coleridge and Carlyle rather than orthodox economic theory: The Industrial Reformation of English Fiction: Social Discourse and Narrative Form, 1832–1867 (University of Chicago Press, 1985). 19. Martha Woodmansee and Mark Osteen, eds, The New Economic Criticism: Studies at the Intersection of Literature and Economics (London: Routledge, 1999); Regenia Gagnier, The Insatiability of Human Wants: Economics and Aesthetics in Market Society (University of Chicago Press, 2000); Mary Poovey, ‘Aesthetics and Political Economy in the Eighteenth Century: The Place of Gender in the Social Constitution of Knowledge’, in Aesthetics and Ideology, ed. George Levine (New Brunswick, NJ: Rutgers University Press, 1994), 79–105; Mary Poovey, A History of the Modern Fact: Problems of Knowledge in the Sciences of Wealth and Society (University of Chicago Press, 1998); Mary Poovey, Genres of the Credit Economy: Mediating Value in Eighteenth- and Nineteenth- Century Britain (University of Chicago Press, 2008); Mary Poovey, ed., The Financial System in Nineteenth- Century Britain (Oxford University Press, 2003); Claudia C. Klaver, A/Moral Economics: Classical Political Economy and Cultural Authority in Nineteenth-Century