CAPITAL DE FACTO

An economics book reconsiders capitalism in light of the theoretical failings of Marxism.

According to Calbay, while Marxism has been thoroughly “defeated in practice,” it remains attractive to many on theoretical grounds. Furthermore, the author contends that the defense of capitalism has been largely advanced using unacceptable subjective grounds. Calbay’s mission is twofold: to furnish a theoretical repudiation of Marxism and to articulate “a consistent, logical, and simple” account of capitalism, what he calls a “general theory of capitalism.” The author asserts that a core problem with Marxism is the labor theory of value, the idea that labor is a commodity that the worker sells. Calbay rejects this theory, claiming that in capitalism, labor cannot be sold since it violates the worker’s freedom, a linchpin of capitalist systems. Moreover, the problem of surplus value is solved as well—only the creation of capital can generate surplus, an excess of which is expressed as profit. In short, private property rights and individual freedom are the signature hallmarks of capitalism, not the brute existence of private property, markets, or merchants. The author’s critique of Marxism and his defense of capitalism are sensible, offering many pertinent points. But neither appraisal is philosophically searching or new; in fact, the arguments are all quite familiar. Moreover, his presentation is almost entirely at a level of such generality that much of it is vague. Calbay seems aware of this, announcing that “we will consider the mechanism in its most general form. The gears and the composition of the lubricant are not our priority although, of course, in ordinary life, their condition is even more important than knowing how the mechanism works as a whole.” Unfortunately, his writing style—turgid and sometimes confusing—diminishes his arguments. As he warns, this is an “anti-Marxist treatise.” Unfortunately, it is an uneven work of theoretical analysis.

A judicious but familiar collection of positions on capitalism and Marxism.