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Capitalism in Black and White


Audio version here.

Black people are not really black. White people are not really white. The words “black” and “white”, applied to people, do not mean what they mean when applied, for example, to  the stripes on a zebra or to objects like coal and snow. The colors of people’s skins vary on a continuum, from almost black to very light shades of pink. The words “black” and “white” (together with red, yellow, and brown) are used to divide people into distinct social categories, called “races”, with each “race” assigned a different status in social and economic life. How did this artificial way of categorizing and ranking people come to be? And why does it continue to exist in spite of all the political work done to challenge it over the past 60+ years?

In my last post, I argued that racism originated with slavery in the American south in colonial times as a way of preventing alliances between poor whites and African slaves, and it continues to function as what W.E.B. Dubois called “a psychological wage” granted to whites: exploited though they were, and are, by their employers, at least they are better than the once-enslaved black people who continue to be marginalized and underpaid, relative to whites. Racism is thus at the service of capital: it prevents working class solidarity and helps keeps the costs of labor down. Today, I’d like to do more to show why racism is essential to capitalism. In this discussion, I will be drawing heavily on an article  by political philosopher Nancy Fraser. 

Taken in abstraction from each other, capitalism and racism look like separate issues. Capitalists own and control wealth that can be made to grow by putting people to work, people who have no wealth of their own and who therefore have no choice but to sell part of their lives to capital. The capitalist pays the workers enough (in general) so that they can go on working, as well as support a family that will produce a continuing supply of workers. But after paying wages and other costs of production, there is a nice surplus left over for the capitalist, which he (or the corporation) can use to further expand production, as well as to finance lives of luxury. The existence of distinct races of workers does not seem essential to this process.

But capitalism did not just spring into being in Europe around 1500. Where did the initial supply of wealth that could be used as capital come from? And why was there a supply of workers who had to sell their labor power? It wasn’t as if a few smart people decided one day to use some of their wealth to buy equipment and raw materials and advertise for workers. Nor did peasants and artisans just decide one day to go out looking for wage work.

A major source of the initial wealth that became capital was the silver and gold violently expropriated by Spain, destroying ancient civilizations and enslaving the natives. Then, when too many of the indigenous people died from disease and overwork, they turned to enslaving Africans to work in the mines. In Europe, peasants were forced off the land and into wage labor when, with the help of the State, lands were enclosed for the profitable raising of sheep for the wool industry. And the nation that was to become the behemoth of capital, the US, was built on land and resources expropriated from its original inhabitants most of whom were slaughtered and the rest confined to reservations. This confiscated land then produced great wealth for capital investment and the building of the nation, not by employing workers to grow tobacco, sugar and cotton, but by violently extracting the labor of people who had themselves been seized and transported from Africa. Yet all this time, the nation was claiming to be a democracy, the land of the free where all men are created equal. The only way to believe this was to also believe that “all men” meant only white men. America was thus constructed as a white nation, which meant that everyone else, whose land and labor we were seizing, was something other than American.

Capital must always be growing. We see now that capital has two ways to increase itself. First, exploitation. Capital exploits wage labor: labor creates more than it costs the capitalist to employ it and that surplus adds to the pile of capital. But the other way is simply violent theft and seizure: what Nancy Fraser calls expropriation, in contrast to exploitation. The native landscapes where we now live, paying banks and landlords for the privilege, were expropriated, stolen, from native people. The nation became wealthy and powerful in the 19th Century through the expropriation of the lives and labor of enslaved Africans and their descendants. The ideology of racism, the supremacy of the white man and the devaluation of blacks and indigenous people, was inevitable and necessary to justify and explain this ugly reality, the reality of racial capitalism.[1]

But what about now? Now that the nation, that is its owners, are rich, haven’t we outgrown our need for racism? Let me quote Nancy Fraser:

No one doubts that racially organized slavery, colonial plunder and land enclosures generated much of the initial capital that kick-started the system’s development. But even “mature” capitalism relies on regular infusions of commandeered capacities and resources, especially from racialized subjects in both its periphery and its core. Accordingly expropriation has always been entwined with exploitation in capitalist society—just as capitalism has always been entangled with racial oppression. 

“Regular infusions of commandeered capacities and resources, especially from racialized subjects in both its periphery and its core.” What does this academic language mean? It means that populations, masses, of people whose skin color marks them as other than white, can be treated as if they did not have the rights to fair treatment that, at least in principle, white workers have. Besides the territorial conquest and enslavement of the past, there are more modern forms of expropriation: prison labor, transnational sex trafficking, corporate land grabs, foreclosures on predatory debt (think sub prime loans), and segmented labor markets enabling employers to pay workers of other “races” less than a living wage, which is a way of stealing from them.

So the claim is that racism and capitalism are entangled because capital always needs more than the profits it can get from the relatively honest bargain it makes with workers it pays for their labor. Capital also needs to steal, to seize, to expropriate. The category of race makes this possible: Quoting again from Fraser: “’Race’ emerges…as the mark that distinguishes free subjects of exploitation (citizen workers) from dependent subjects of exploitation”. Political powers support capital accumulation in part by fabricating (at least) two distinct categories [i.e. races] of subjects, one suitable for expropriation, another for exploitation.”

Racism and capitalism are two aspects of one system of domination, the system of racial capitalism. So the movements against racism and capitalism must be one, united movement.




[1] Following David Roediger, Class, Race, and Marxism (Verso, 2018), p. 25.

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