Recent discourses about modern economic systems have included the concepts of late capitalism and late-stage capitalism in the fold. These terms often appear in opinions and reports coursed through news media, think pieces posted on social media, and even casual conversations. Nevertheless, while both sound similar, these two have distinctive meanings that reflect different perspectives on where the economies stand today. This article discusses the difference between late capitalism and late-stage capitalism based on their origins, actual usage, and focus.
What is the Difference Between Late Capitalism and Late-Stage Capitalism?
Origin and Usage
German economist and philosopher Ernst Mandel used the concept of late capitalism in his 1972 book “Late Capitalism” to describe the phase of capitalism that emerged after the Second World War. This phase was characterized by the globalization of economies and global expansion of markets, the rise of multinational corporations or internationalization of businesses, and the increasing role of technology and information in the economy.
Note that the term “late capitalism” first appeared in print and was used by German economist Werner Sombart at the start of the 20th century. Mandel reintroduced it after witnessing the economic changes that transpired beginning in 1940. These changes include the post-war economic boom, increasing globalization, and the commercialization of technologies.
The concept of late-stage capitalism is more recent. It is often used in a critical or satirical context to describe the perceived excesses, inequalities, and dysfunctions of modern capitalist societies and neoliberal economic policies. It has gained popularity among left-leaning progressives and across online discourse and social commentaries to underscore the absurdities or contradictions and prevailing problems of modern capitalism and neoliberalism.
Usage of the term “late-stage capitalism” has gained a lot of traction on social media platforms. It has been used by advocates for social change and the general public to express their frustration with the seeming unfairness in modern economic systems. It has now become a popular term that represents the growing dissatisfaction with the current state of capitalism.
Main Focus
The focus of late capitalism is on the structural and economic changes that have occurred in the capitalist system. It suggests a stage in capitalism marked by intricate economic dynamics such as the interconnectedness of global markets, the expansion of service industries, and cutting-edge technological advancements. Furthermore, because of its focus on economic structure, it highlights the new economic conditions and trends that have emerged in recent decades.
Nevertheless, because of its aforementioned focus, the merit of late capitalism lies in its ability to describe, analyze, and critique the advanced stage of capitalism as it transpires in the globalized stage. It provides a framework for understanding the structural and systemic changes within capitalism and their social, economic, and political consequences.
The focus of late-stage capitalism centers on the social and moral implications or drawbacks of capitalism as it reaches what some consider an unsustainable or crisis-prone phase. It often implies that the capitalist economic system is approaching its end because of the perceived decline in its effectiveness. This decline is often associated with challenges like growing income inequality, environmental degradation, social unrest, and the commodification of all aspects of life.
Hence, while it is often used in a more informal, critical, or even satirical context, the concept of late-stage capitalism carries significant value in its ability to highlight pressing issues with modern capitalism. It serves as a powerful term that captures and underscores the range of problems arising from the failures or inadequacies of a capitalist economic system.
The Difference Between Late Capitalism and Late-Stage Capitalism in a Nutshell
Both terms and concepts refer to the current phase of capitalism. However, based on their intended usage and focus, the main difference between late capitalism and late-stage capitalism rests on how they are used to describe the modern economic condition under a capitalist system. Note that late capitalism is a more academic term rooted in Marxist economic theory. It specifically focuses on the structural economic aspects of the current stage of capitalism. Late-stage capitalism carries a more critical and often negative connotation. It is a critique of modern capitalism and it suggests that this economic system is nearing its limits or is facing significant challenges.