Sven Beckert’s latest book on capitalism, a comprehensive examination of this profound economic system, presents a sweeping narrative that spans nearly a millennium. He defines capitalism as “the ceaseless accumulation of privately controlled capital,” emphasizing its persistent evolution and impact on societies worldwide. Beckert takes us back to capitalism’s roots in the vibrant port of Aden in 1150. This new vibrant cosmopolitan trade hub would turn out to be the birthplace of an economic structure that would come to completely indelibly mark history across the globe.
Their book tells the story of how this capitalism emerged from these complicated global networks marked by great opulence and great misery. Running through Beckert’s work is an “actor-centred history.” It reminds us that capitalism is not merely the sum of past events but is a dynamic process constantly being forged by human action. He makes the case that capitalism is a historical, human-made phenomenon. Most importantly, he highlights the ever-changing tension between personal choice and broader structural influences across time.
Beckert dives into a series of often surprising historical examples to illustrate the complex and fragmented nature of capitalism. Perhaps the most telling case of all is that of the city of Potosí, in what is now southern Bolivia. In early 17th century, Potosí was lauded as the “wonder of the world” and the “envy of kings.” At its peak, the city was pumping out more than 60% of the entire world’s silver. This fortune allowed Spain to pay for wars and service their debts. The wealth created by the silver of Potosí radiated from Europe. It powered the economic growth of far-off places such as India and China.
Their story illustrates the contradictory and often deadly nonlinear path of capitalism’s dramatic progress. Beckert argues that the Industrial Revolution was the greatest capitalistic breakthrough. For much of this time, economic growth was not based on direct, structural white supremacy and exploitation like it had for most previous eras. This transition serves as a clear example of how the search for profit always required changing methods of obtaining and controlling labour.
In his book The Monied Confederacy, Beckert delves into the ways European traders were essential to realizing a Eurocentric Americas. This realization allowed them to upend the prevailing trading routes across Asia and the Middle East. This serendipitous discovery would go on to become a turning point in history. It enabled European countries to establish their economic hegemony worldwide and radically restructured their formative economies.
The book goes on to grapple with the moral quandaries involved in the process of capitalism’s growth. Beckert illustrates how Americans deployed the Protestant work ethic in order to defend child labor in the household. Further, he explains how it plays a part in the forced labor of enslaved workers overseas. He highlights a stark example from the island of Barbados, where 74 sugar planters utilized “American lands, African labour and European capital” to establish a private slave colony. This ruthless exploitation drove millions of enslaved Africans and subsequently enslaved Indigenous peoples throughout the Americas. American capitalism’s booming growth was fueled by the trillions of dollars in wealth created by their unpaid labor.
Along his journey, Beckert introduces us to some of the most representative actors who have shaped capitalist history with their lasting legacies. Amongst these are Jakob Fugger, the most powerful merchant banker of the Renaissance, General Pinochet, under whose Chilean regime the first implementation of neoliberal economic policies were put into practice, Ardeshir Godrej, an influential Indian entrepreneur, and Hermann Röchling, a leading industrialist in touch with Nazi Germany. Each of these figures opens wonderful doors to Beckert’s explanation of the bigger themes at play in capitalist development.
Beckert’s years of research illuminate a surprising realization—that capitalism is more than just an economic system. Retreating further behind the curtain, it creates a dense matrix of relations and power geometries that are perpetually in flux. He argues that understanding capitalism requires acknowledging its deep historical roots and recognizing its global impact on societies, economies, and individuals.