Imperialism, the Highest Stage of Capitalism

Once industrial capitalism faces it’s domestic contradictions given the decrease in variable capital and the proliferation of constant capital, fresh exchange value concomitant to the former variable wanes; consequently, profits fall.

The rate of exploitation becomes higher as productive advances – given growing constant capital which is a necessary move in capitalism – means socially necessary labour time decreases and there is an increase in relative surplus.

This means more can be made but the ability of the population as a whole to consume it subsides making the quest for new markets imperative.

At this stage bank capital and industrial capital conflate instituting financial oligarchy. As a result developed nations can circumvent protectionist policy by the export of finance capital as opposed to commodities to the third world.

The fight between the colonies culminating in the First World War is symptomatic of this contest for markets and consolidates the territorial division of capitalism exposing imperialism as it’s highest stage.

Additionally, this facilitates the welfare extraction necessary to pacify the populations of the developed nation states, which Cecil Rhodes had intimated could cause civil war if it weren’t forthcoming.