Gold bought mercenaries.  A lack of gold during the late 1600s was drawing 
England into a
terrible deflation.

On Fri, Dec 03, 2004 at 12:23:54PM -0500, Doug Henwood wrote:
> Devine, James wrote:
>
> >  >"The treasures captured outside Europe by undisguised looting,
> >enslavement, and murder, floated back to the mother-country and were
> >there turned into _capital_ ( emphasis CB) "<
> >
> >I can't channel Bob today, since for some reason the ether is occluded
> >by bad vibes. But I'd guess that he might use the metaphor that I've
> >used before in pen-l. The destruction of the English independent
> >peasantry and the resulting creation a large proletariat (dependent on
> >the capitalists for survival) created an engine of growth for England.
> >Looting from the colonies, the slave trade, etc. provided fuel for that
> >engine at a crucial time.
>
> The slave trade, yes, because that's a form of noncapitalist labor
> that nonetheless produces commodities that enter capitalist
> circulation - but loot? How would metals and other treasures provide
> fuel? Wouldn't they be more like an increase of money that doesn't
> emerge from an increase in productive capacity, and therefore is more
> likely to raise the price level than stimulate accumulation?
>
> Doug

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu

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