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Published in: Society 3/2018

10-05-2018 | Culture and Society

The Wages of Intimate and Anonymous Capitalism

Author: John Paul Rollert

Published in: Society | Issue 3/2018

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Abstract

The spirit of capitalism is a sentimental reflection of its practice, and the practice envisioned by the likes of Adam Smith and other early proponets of capitalism assumed an intimate commerce among friends and neighbors. With the advent of the industrial revolution and the development of the modern corporation, commercial relationships increasingly became anonymous, with the result that the sentimal forces that once shaped capitalism withered, leaving a crude, uncomplicated form of self-interest in their place.
Drawing on economic history, classic works of political economy, and personal interviews, I tell the story of these two competing visions of capitalism, the intimate capitalism of the old world (a phenomenon still visible in small town America, today) and the anonymous capitalism of contemporary commerce.

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Footnotes
1
My interview with Fritz Stanizek was conducted on 17 March 2006.
 
2
As Smith declares in The Theory of Moral Sentiments:
It is thus that man, who can subsist only in society, was fitted by nature to that situation for which he was made. All the members of human society stand in need of each others assistance, and are likewise exposed to mutual injuries. Where the necessary assistance is reciprocally afforded from love, from gratitude, from friendship, and esteem, the society flourishes and is happy. All the different members of it are bound together by the agreeable bands of love and affection, and are, as it were, drawn to one common centre of mutual good offices.
(Smith, Adam. The Theory of Moral Sentiments. Indianapolis: Liberty Fund, 1976. 85.)
 
3
Smith, Adam. The Wealth of Nations, Volume I. Indianapolis: Liberty Fund, 1982. 378.
 
4
Defoe, Daniel. The Complete English Tradesman. Manila: R.P. Garcia Publishing Co. 43.
 
5
Ibid., 22.
 
6
Ibid.
 
7
Franklin, Benjamin. The Autobiography. New York: Penguin Books, 1986. 65–6. [Emphasis Franklin.]
 
8
These passages are found, respectively, at pages 61–62 and 66 of The Autobiography.
 
9
Dickens, Charles. A Christmas Carol. London: Octopus Books Limited, 1986. 14.
 
10
“Enron Traders Caught on Tape.” CBS News. Online. 1 June 2004.
 
11
My interview with “Victor” was conducted on 11 April 2006.
 
12
On this point, in The Wealth of Nations, Smith famously declares:
In the progress of the division of labour, the employment of the far greater part of those who live by labour, that is, of the great body of the people, comes to be confined to a few very simple operations; frequently to one or two. But the understandings of the greater part of men are necessarily former by their ordinary employments. The man whose whole life is spent in performing a few simple operations, of which the effects too are, perhaps, always the same, or very nearly the same, has no occasion to exert his understanding, or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him, not only incapable of relishing or bearing a part in any rational conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgment concerning many even of the ordinary duties of private life. Of the great and extensive interests of his country, he is altogether incapable of judging; and unless very particular pains have been taken to render him otherwise, he is equally incapable of defending his country in war. The uniformity of his stationary life naturally corrupts the courage of his mind, and makes him regard with abhorrence the irregular, uncertain, and adventurous life of a soldier. It corrupts even the activity of his body, and renders him incapable of exerting his strength with vigour and perseverance, in any other employment than that to which he has been bred. His dexterity at his own particular trade seems, in this manner, to be acquired at the expense of his intellectual, social, and martial virtues. But in every improved and civilized society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it.
(Smith, The Wealth of Nations, 781–2.)
 
13
Jefferson, Thomas. “Query XIX” in Notes on the State of Virginia in Thomas Jefferson, Writings. New York: Penguin Putnam Inc. 290–291.
 
14
Dewey, John. The Public and Its Problems. Athens, Ohio: Ohio University Press. 96.
 
15
Wilson, Woodrow. The New Freedom as cited in Dewey, The Public and Its Problems. 96.
 
16
Ibid., 97–8.
 
17
Hayek, Friedrich A. The Constitution of Liberty. Chicago: The University of Chicago Press. 1960. 76.
 
18
Ibid., 84.
 
19
Marx, Karl and Engels, Friedrich. Manifesto of the Communist Party in The Marx-Engels Reader, Second Edition. New York: W.W. Norton & Company, 1978. 476.
 
20
Smith, The Wealth of Nations, Volume I, 26–7.
 
21
The quotes from this sentence and the next are taken from an email from Victor dated 23 August 2006.
 
Metadata
Title
The Wages of Intimate and Anonymous Capitalism
Author
John Paul Rollert
Publication date
10-05-2018
Publisher
Springer US
Published in
Society / Issue 3/2018
Print ISSN: 0147-2011
Electronic ISSN: 1936-4725
DOI
https://doi.org/10.1007/s12115-018-0250-1

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