In recent media coverage, the term “late-stage capitalism” has become a popular way to describe our current, highly financialized climate and phase of neoliberalism, the political and economic ideology that advocates free markets and reduced government regulation, emphasizing private enterprise with a “let the market decide” mentality. But what does this mean? Have we really entered this phase? Are we in the final chapter of capitalism in the nation, or just turned the page?
The term “late-stage capitalism” originally comes from the political philosopher Karl Marx and Marxist thought, where it is believed that capitalism is not feasible and contains so many contradictions that it will lead to its own collapse. The late-stage asserts that we are witnessing this implosion now.
A major argument that we have entered late-stage capitalism is increased inequality in the U.S. The wealth gap between the rich and essentially everyone else is expansive. The majority of wealth is concentrated in a small percentage of the population and stays there. Families struggle to support themselves through rising prices, while billionaires grow their fortunes through the exploitation of those struggling. Revealing a system obviously rigged and flawed.
More evidence is the concern of corporate dominance and industry monopolies. A small portion of companies has near total dominance over many industries, like food, pharmaceuticals and technology. This in itself is limiting competition and weakening the capitalist system.
Another reason that the late stage has been entered is the issue of sustainability; it is being shown that a profit-driven capitalistic society cannot be sustained. Two examples of massive issues caused by clearly profit-driven decisions are climate change and rising healthcare costs. Companies prioritize earnings over making healthcare more available for all people or environmental protection; this and more are pushing society to the brink.
However, it is hotly debated; many do not agree that we are in the late-stage or that it means the beginning of the end of capitalism. It is proven through history how adaptable capitalism is, surviving world wars, economic depressions and many financial crises. This means that being in the late-stage doesn’t necessarily result in collapse. Ideally, it could create innovation and change.
Late-stage capitalism may be more of a warning than a prognosis; it highlights the detrimental flaws in our nation and the capitalist system as a whole. But whether the late-stage means the end is nearly impossible to tell.
