Fix, ‘The Ritual of Capitalization’
September 22, 2021
For more than a century, political economists have sought to understand the nature of capital. The prevailing wisdom is that there must be something ‘real’ — some productive capacity — that underpins capitalized values. This thinking, I argue, is a mistake. Building on Jonathan Nitzan and Shimshon Bichler’s theory of capital as power, I argue that capitalization is an ideology. It is a quantitative ritual for converting earnings into present value. Although the ritual is arbitrary, it gives rise to astonishing empirical regularities, reviewed here.
The Ritual of Capitalization
Fix, Blair. (2021). Real-world Economics Review. Issue 97. September. pp 78-95.