What is Financial Capital?

Introduction to financial capital content: The most typical feature of "modern" capitalism is the concentration process, which is manifested on the one hand by the emergence of cartels and trusts that "free competition is being abandoned", on the other hand it causes bank capital and industry Increasingly close links between capital. This connection makes capital take its highest and most abstract form of expression-financial capital.

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Financial capital

Financial capital is the monopoly capital formed by industrial monopoly capital and bank monopoly capital. Channels include financial linkages, capital participation and personnel participation.

This integration is reflected in three aspects: First,

After World War II, developed

Financial capital is in

Industrial capital and

The main organizational form of financial capital is the financial capital group, or consortium. In each imperialist country, there are few huge consortia that manipulate all the economic and political life of the imperialist countries. According to 1975 statistics, the two largest US consortia are

Based on the formation of financial capital, financial oligarchs have emerged. Financial oligarchy refers to the few monopoly capitalists or monopoly capitalist groups that manipulate the lifeblood of the national economy and actually control the state power. The financial oligarch also influences and influences internal affairs, diplomacy and social life through the establishment of policy advisory bodies and mastery of news, science, education and culture.

Participation is the main means by which financial capital rules the national economy. Through the participation system, major consortia controlled other people's capital several times or dozens of times their own capital and extended their tentacles to a wide range of economic fields. Financial capital also seized high monopoly profits by issuing marketable securities, starting new enterprises, reorganizing small and medium-sized enterprises, implementing various mergers and organizing various monopoly organizations, and realizing its rule of the entire national economy.

While financial capital strengthens the rule of the national economy, it also extends its tentacles to all aspects of social life, especially the political life of the country. The financial oligarch's penetration and control of the state apparatus is mainly achieved through personnel participation and "individual union". This "individual association" can be achieved directly by financial capitalists or their agents in government positions, or by purchasing senior government officials or parliamentarians.

In addition, financial capital also exerts influence and control on the government through various channels. For example, in monopolistic capitalist countries, there are organizations such as "National Manufacturers Association", "Employers Association", "Federation of Economic Groups" and so on. These financial oligarchic clubs often influence and influence government decisions by making recommendations and research reports. In fact, it is the financial capitalists who are formulating specific policies and guidelines for the government, asking the government to implement their intentions and serve their various economic and political interests at home and abroad.

Therefore, the complete economic and political domination of financial capital marks that capitalism has entered its highest stage, which is the essence of imperialism.

The formation and domination of financial capital has pushed capitalist private ownership of the means of production to a new height. Very few financial oligarchs are capturing more and more national wealth, and they are gradually expanding the deprivation of the means of production to huge monopoly capitalists through mergers or mergers. They also control more and more capital of others through various channels. Financial capital also puts the property and finances of the bourgeois state under its direct control through individual association with the bourgeois government. In this way, the increasing concentration of the means of production and the increasing socialization and internationalization of production will inevitably intensify the contradictions inherent in capitalism.