Imperialism: The Highest Stage of Capitalism

Imperialism is the natural result of capitalism, not an example of decay or extrinsic imposition or accidental growth. Imperialism is capitalism’s final stage; it only appears at the very tail end of a capitalist regime. It is part and parcel of what capitalism actually means.

Ironically, the very system that initially champions free trade and competition inevitably leads to late-stage capitalism and imperialism which do the exact opposite: They destroy free trade via the creation of monopolies. This is the reason that Lenin defines imperialism as the monopoly stage of capitalism.

Early capitalism thrives on free trade and entrepreneurial endeavors. The monopolies of late-stage capitalism reverse this trend and reward monopolistic policies and practices. Regardless of the political system of governance, true power lies with those whose wealth dictates the ebb and flow of the economy; in this case, the financial oligarchy in league with banks. The transition to finance capital at the expense of classical trade and production makes a financial oligarchy possible. A small circle govern this imperialist system and hold all capital.

Finance capital replaces labor, along with goods and services. Money creates more money while exploiting new colonies in developing countries for cheap labor. National monopolies transition to global, international monopolies that control international relations and set global markets, from which none can escape. The international monopolistic imperialists can determine where and how their capital is being multiplied.

Lenin takes Karl Kautsky, the foremost Marxist theorist of his time, to task:

“Kautsky argued that there was nothing inevitable about imperialism,” writes Tom Bramble. “It was only a ‘policy’ of annexation preferred by finance capital and the arms industry and could be combated by another capitalist policy that did not involve annexation of territory and which would be advantageous for other sections of capital. Further, Kautsky argued, as blocs of finance capital came to dominate ever larger parts of the world, they might eventually unite in the form of ‘ultra imperialism,’ what he called the ‘joint exploitation of the world by internationally united finance capital.’ The big powers would no longer need to go to war to settle disputes.

“Lenin took apart Kautsky’s ‘ultra imperialism,’ continues Bramble, “for both its logical flaws and its political implications. The international cartels that Kautsky believed could be the basis for a peaceful division of the world were only an example of the division and constant re-division of the world. Specifically, the old imperial powers Britain and France controlled vast swathes of Africa and Asia; Germany, by contrast, had very few colonies. But Germany was the far more dynamic industrial power by the early twentieth century; it was inconceivable it would be content with its exclusion from large areas of the world. There could, therefore, be no ‘internationally united finance capital’ sharing out the spoils of colonialism.” (Bramble, Tom. “Understanding war: Lenin’s ‘imperialism: The Highest Stage of Capitalism.’” 2022. Mronline.org.)

Public relations and academic scholarship can’t alter the parasitic nature of imperialism. Even if empires united to impose peaceful relations between all countries of the world, it would still be an alliance of capitalist imperialists beholden to finance capital and the monopolies that have created their vast wealth. This peace would be a false peace. In capitalism, peace is only the preamble to violence and war.

The subjugation of the proletariat can’t last forever. At some point, the status quo will change, and the means will be violent.