David Shemano wrote: >> I am trying to understand the importance of this
debate.<<

I’m not sure that there really was a debate going on, but its importance is
part of the Marxian and socialist intellectual traditions: we understand
the present partly by examining the past. In addition, starting with Marx,
people want to make a moral point against capitalism by pointing to its
ideologists’ pretensions about the system being based on “freedom” go
against the reality of unfree labor being crucial to capitalism’s rise
(along with the basic unfreedom of nominally free labor). (There's a
conflict between capitalist theory and practice.)

>>If the point is that a capitalist economy can coexist with and thrive in
a relationship with a slave economy, that does not seem like a very
important point. Seems obvious.<<

It may be obvious, but hiding behind that is what is meant by “capitalism.”
To many, including money libertarians, modern liberals, and many leftists,
capitalism refers to a system of production of goods and services for the
market (what Marx called “commodity production”). For others, capitalism is
more than just market-oriented production: I think it was that old bald
Russian with the Van Dyke beard who defined capitalism as “generalized
commodity production” in which not only products of labor but also
labor-power are treated as commodities to be bought and sold. (Labor-power
refers to one’s ability to work during a specific time period rather than
to actual labor done or a human being.)

The role of slavery under the first definition of capitalism can easily
differ from its role under the second definition. I follow the second one.
In general, I follow Marx’s terminology.

>> If, however, the point is that the rapid economic takeoff of capitalist
economies in the 19th century was "dependent" on its prior profitable
relationship with a slave economy, I just don't see it. We can only
speculate about counter-factuals, but the notion that a "necessary"
condition to the growth in the North in the last quarter of the 19th
Century was slavery in the South for the prior 200 years does not ring true
to me. I don't dispute that the wealth created in the South was a
contribution to the growth in the North, but it seems to me that wealth
(profitable cotton, tobacco, etc.) would have been created if the South had
a wage-based similar to the North. And I further believe that if the South
simply never existed, the North would still have grown steadily and then
taken off in the late 19th Century as industrialization took off.<<

I’ll ignore the counterfactual about the South never existing (however
pleasant that would be), because capitalism is a world system. If the area
below the Mason-Dixon line didn’t exist, slave colonies in the Caribbean
and elsewhere could have played a similar role. We can't treat either the
US or its North as an island.

To understand whether or not the existence of slavery was necessary to the
rise of world capitalism, we have to think about what the “creation of
capitalism” (or the so-called “Primitive Accumulation”) means. It involves
the creation of two classes. One (the small minority, the capitalists) owns
and controls the means of production (capital goods) allowing them to
produce, own, and sell the means of subsistence (consumption goods). The
other (the vast majority, the proletariat) lacks direct access to the means
of production or subsistence and thus must work for the capitalists in
order to survive. That is, they must sell their labor-power to the
capitalists, submitting to the latter’s authority for a period of time, in
exchange for wages or salaries. Note that despite the proletarians’ social
dependence on the capitalists, they are not slaves or serfs. The owners
normally do not apply direct coercion to get workers to work. (There are
exceptions, of course, as with the forcible breaking of labor unions, etc.)
Instead, the reserve army of unemployed labor, the need to pay bills and
support the family, etc., push workers to sell their labor-power and then
work on the job under the boss’s thumb.

As Marx described the process, the creation of this system involved (1) the
concentration of ownership of the means of production in relatively few
hands; and (2) the exclusion of producers from direct access to them.
Starting in a very agrarian society, that involved wholesale conversion of
“feudal” property rights in land into “modern” capitalist ones. This
process involved phenomena as diverse as the English king’s stealing of
Church lands and the voluntary conversion of some “feudal” landlords into
capitalists. Most importantly, old feudal traditions which gave the direct
producers access to their own land (so, in theory, they could survive on
their own) were abolished, so that only the new owner had access or the
ability to allow others access. The land instead belonged to some
capitalist, who “enclosed” the land with fences, kicking workers off the
land and making them dependent on the new landlord for their
subsistence. In addition, in the urban sector, guilds were broken (or
avoided in some
way), ending producers’ control over production. This forcible process
involved the concentration and centralization of economic power in a
relatively small number of hands.

This concentration and centralization in a small number of hands was aided
by the accumulation of wealth in the slave colonies. Wealth from abroad
also helped fuel England’s capitalist engine, providing profits which
promoted accumulation and the spread of the wage-labor system. Cheap cotton
(produced by slave labor), for example, helped the English cotton textile
industry, which was at the center of the Industrial Revolution.

A case may be made that in its early stages, England’s capitalism could
have been bottled up and squelched. After all, earlier Italian and Dutch
efforts in this direction stalled. But England’s major role in the
capitalist world system meant that its capitalists could benefit mightily
from the loot accumulated from the colonies. This may have saved their
bacon.

After a while, however, capitalism becomes less dependent on this kind of
international exploitation. Capitalists gain control over production and
can introduce machinery and the like to raise workers’ productivity. This
provides a surplus which can be accumulated, promoting the growth of the
system.

By the way, the ability to forcibly squeeze slaves for labor (and the
unreliability of slave labor using machines) actively discourages this kind
of technological change. In general, it limits the role of free wage labor
because the products of slave labor are cheaper (all else constant). Thus,
the existence of slavery (or other forced-labor forms of production) can
actually block the existence and spread of wage labor. However, slave labor
isn't very useful in many spheres of the economy (think about slaves acting
as stock brokers, for example) wo that this blockage is not universal.

Capitalism’s growth still benefits a lot from super-exploitation
(sweatshops and the like). Increasingly, its benefiting from the
“exploitation” of nature, i.e., getting benefits now which are going to
impose costs on us later (as with global warming) or imposes costs on those
not creating the pollution.

Was slavery's existence necessary to the existence of capitalism and its
rapid growth over the centuries? In theory, no. Marx's theory of capitalist
growth in his CAPITAL describes a relatively idealized version of the
system which lacks slavery as a major element except to "get the ball
rolling." (As mentioned, Marx's description involves no direct coercion of
workers.) This theory involves exploitation, class conflict, and economic
crises, but the system doesn't automatically fall apart, absent a organized
and class-conscious working class movement. However, the coercive power of
the capitalist state is crucial, protecting capitalist property and power
while helping to avoid the rise of an organized and class-conscious working
class movement. In the end, though capitalism may not require slavery, it
does require coercion.

In practice, however, capitalism and forced labor have been intimately
connected since the beginning. Unless there's a social movement opposing
it, stockholders and managers really don't care if some of their profits
come from slave labor and they will seek out those profits if they can.
Capitalists don't care about the health of humanity; instead all they care
about is their profits. If slavery promotes profits, individual capitalists
will try to gain from it. More long-sighted capitalists have typically
opposed slavery, however, perhaps because it can undermine the legitimacy
of the system.

I'm sorry this is so long-winded. I'll stop there.

-- 

Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way
and let people talk.) -- Karl, paraphrasing Dante.
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