Can Capitalism Lead to Fascism?

The relationship between capitalism and fascism has long been a topic of debate among economists, historians, and political theorists. While some argue that a capitalist system will inevitably lead to fascism under certain conditions, others maintain that it depends on the specific context. This article explores the dynamics that may foster a transition from a capitalist system to fascism, and the potential outcomes that could arise.

Understanding Fascism

Fascism is often portrayed as a form of extreme nationalism and authoritarianism, with roots in both socialist and state interventionist ideologies. However, it can also be seen as a reaction to crises and revolutionary fervor, which can mobilize people towards a more authoritarian regime.

While many leftists may not see a distinction between capitalism and fascism, the truth is that modern capitalism has adopted many elements of inverted fascism. In the West, where government intervention has been frequent, neoliberal policies have been implemented to open up markets, often under the guise of free market principles. This form of fascism is internalized, meaning it serves the interests of the owning class while perpetuating social inequality.

Modern Forms of Fascism

As the profits of capitalism diminish, the owning class is increasingly turning to strategies that resemble fascism. By reducing the working class and pitting it against itself, the rich can maintain their power. This internalization of fascism, or inverted fascism, ensures that the owning class can survive and thrive even as their power grows.

€?Example: The 2015 film Snowpiercer depicts a dystopian future where the owning class controls the resources, often at the expense of the working class. The system is designed to maintain the lifestyle of the rich while ensuring the survival of the middle class, but it comes at the cost of significant social inequality and declining quality of life for the majority.

The Mechanisms Behind Fascism

The mechanisms behind the transition to fascism in a capitalist system are complex. As growth rates decline, the capital singularity may emerge, where a few individuals control most of the wealth. This concentration of wealth often leads to increased social inequality and a decline in the quality of life for the working class and the middle class.

Fascism, in this context, serves the interests of the owning class, as it allows them to maintain and increase their power. By culling the working class and creating internal distrust and conflict, fascist regimes can stay in power and ensure their own prosperity. Even in a capitalist system, the owned class, comprising less than 1% of the population, would have no way to protect themselves against the majority if they tried to challenge them directly. This internal instability is therefore a key feature of fascist regimes.

Alternative Outcomes

While the current trajectory suggests a move towards fascism, it is also possible that people will eventually realize the injustices and challenges of the system. This could lead to a complete overthrow of the existing order, as Marx predicted. However, history shows that such moments are often followed by external intervention, such as military interventions or the installation of fascist regimes, as seen in post-war states.

For example, when the working class begins to rise up against the capitalist system, the response often comes from external forces. The United States has a long history of intervening in other countries to stabilize or install regimes that align with its interests, many of which can be described as fascist or authoritarian.

Conclusion

While the relationship between capitalism and fascism is complex and context-dependent, the current trends suggest that a move towards a more tyrannical and authoritarian regime is likely. However, historical and contemporary examples demonstrate that alternative outcomes are possible, depending on the actions of the citizens and external powers.

Understanding the forces at play is crucial for developing effective strategies to address social injustices and prevent the emergence of fascist regimes. By recognizing the potential threats and exploring potential solutions, we can work towards a more equitable and sustainable future.