Confronting Capitalism: How the World Works and How to Change It

by Vivek Chibber

A strategic guide to building a more democratic and egalitarian future

Why is our society so unequal? Why, despite their small numbers, do the rich dominate policy and politics even in democratic countries? Why is it so difficult for working people to organize around common interests? How do we begin to build a more equal and democratic society?

Vivek Chibber provides a clear and accessible map of how capitalism works, how it limits the power of working and oppressed people, and how to overcome those limits. The capitalist economy generates incredible wealth but also injustice. Those who own the factories, hotels, and farms always have an advantage over the people who rely on that ownership class for their livelihoods. This inequality in power and income is reflected in the operation of the state, where capitalists are able to exert their will even under relatively democratic conditions. The most important reason is that states depend on the employment and profits from capitalist enterprise for both finances and legitimacy. Every meaningful victory for working people has been won through collective struggle but collective action is very difficult to coordinate. In the final section of the book, Chibber walks the reader through some of the historical attempts to build socialism and presents a vision of how we might, perhaps against the odds, build a socialist future.

Genres: Politics, Economics, Nonfiction, Academic, History, Education, Sociology

176 pages, Kindle Edition

Published August 30, 2022

About the author

Vivek Chibber is Professor of Sociology at New York University and the author of Postcolonial Theory and the Specter of Capital and Locked in Place: State-Building and Late Industrialization in India, which won the Barrington Moore, Jr. Prize. He has contributed to, among others, the Socialist Register, American Journal of Sociology, Boston Review and New Left Review.

Reviews

[Reid tries to read · Rating 3 out of 5]

Pretty good little primer on how capitalism works that (mostly) avoids the trap of moralistic claims by looking at the pure nuts and bolts of the capitalist system and emphasizing how its exploitation is a material reality rather than a moral sentiment. I particularly like his section on the state, and how Vivek points out that the state always has a built in bias towards capitalists because it needs to promote capital accumulation within its polity/territory in order to continue funding itself. However, he never dares step his toes in suggesting any sort of way to combat capitalism that is more revolutionary than trade unionism. He also completely glosses over imperialism, which leads him to some suspect conclusions. His last chapter is particularly cringe, where he promotes European social democracy while ignoring the third world exploitation such “democracy” is based on. He also states that central planning is unnecessary because, to him, economics is just a means to an end, with that end being socialism. My dude socialism itself is a means to an end (communism). To paraphrase Lenin, the most simple way to boil down Marxism is that it is the belief that to overthrow capitalism you must establish a dictatorship of the proletariat. Vivek ultimately rejects the Russian model of revolution for today because the current left does not have the inroads with the working class that the bolsheviks did, and because the American state is much more powerful and competent at suppressing revolt that the Tsarist state. These are both true, but this doesn’t mean we should argue for the oxymoronic “revolutionary reformism” that Vivek does. I think that it’s pretty unlikely that there will be a successful revolutionary proletarian uprising in America, but that doesn’t mean it can’t happen elsewhere where the capitalist state is less powerful/competent, and a left wing party might have more traction with the working class. The communist revolution is inherently an international one, which to me means that the best thing Americans can do is to promote anti-imperialism and hamper America’s efforts to function as the police of the world capitalist system through any means necessary.

[madison carter · Rating 3 out of 5]

while this book wasn’t ground breaking for me personally, it was fairly digestible and covered a decent amount of ground without overloading or skimping. it tells it like it is and that’s about it. for me, it felt dry but if i had read this like 5-6 years ago, my mind would’ve been blown.

if you don’t know your basics or need to assign a text to a class, good option. if you are versed in anti-capitalism and hoping for insightful/inspiring commentary, pass.

[Emma Goldman · Rating 4 out of 5]

A good basic explanation, aimed at younger folk than me I think. Almost Capitalism 101. Would recommend it to new trade union members, and as a good gift to teenagers with no real background in class politics or political activity. Certainly covers all the main points, plus detailed exploration of the options for opposing exploitation of workers and the drawbacks of individual based struggle, or over reliance on academic/professional trxts and theories.

[Sascha Döring · Rating 4 out of 5]

If you're a young activist or just getting involved with socialist politics, then this book should serve as a great introduction to the challenges ahead. If you're more of a veteran of the movement then nothing in there will be groundbreakingly new but I found that I very much admire Chibber's ability to address the problems of socialism in such a clear and concise language.

[Ben Gutteridge · Rating 5 out of 5]

Really excellent extended essay that is probably the best capitalism primer I have read yet. Strong emphasis on labour.

(i) Chibber explains what capitalism is and why it is unjust in simple, clear language, without resorting to fanciful metaphors and allegories the way e.g. Yanis Varoufakis does in his own intro to capitalism, Talking to my Daughter about the Economy. I'd say this is much better — shorter, more grounded and mature, and more cohesive.

(ii) he explains why both a strong labour movement and a strong labour party are necessities to mitigate control of the state by the wealthy, and how many countries have lost one or both of these in recent decades.

(iii) a solid intro to class struggle

(iii) the best bit imo, Chibber lays out some practicalities of moving forward, and pretty much cements himself as my socialism lodestar. It amounts to this: any realistic socialist movement in the coming years is pretty much going to be shooting for a Nordic style social democracy, ie strong unions and a strong welfare state, and the best way to have a successful labour movement is to (i) have it be worker led, not an intellectual-moral exercise for academics and the affluent, and (ii) adopt a model similar to the early, democratic Bolsheviks (according to Chibber, the only left organising model that has ever really been successful), with strong centralised power and a cadre system of full time organisers placed directly into workplaces

If I had one issue with this book it's that Chibber centres the working class (and somewhat dismisses the professional classes) in an age when, in many countries, the concept of the working class is indistinct and hotly contested. I'd have liked one more chapter that concretely defines a broader and more inclusive definition of workers


Intro/Basic structure
- since 1980 essentially all economic growth has
Intro/basic structure
- capitalism produces a fundamental imbalance between workers and the wealthy, one which prevents workers from ever truly attaining security or meaningful control over their work or their time

Capitalism and the state
- A handy potted version of Ralph Miliband's book on the topic.
- A state under capitalism will always be biased in favour of the wealthy, because:

- The wealthy are more likely to get into office.
- The wealthy exercise greater influence on the people in office.
- Most importantly, the state’s dependence on capital ensures that politicians will favor capitalists even if the first two mechanisms fail.

- In a democracy you would expect policies to be implemented if they have majority public support, but in practice the policies implemented are those that are supported by the wealthy — policies favoured by the masses are implemented only when they happen to overlap.

Solutions
- The only way to mitigate this is with a strong labour movement, which requires both a union arm (ie that can strike) and a political arm (ie a labour party that can effect change without needing constant strikes).
- Since 1980 the power of unions/labour has declined massively, leaving weak and/or increasingly centrist labour parties that do not support the cause of labour (UK Labour, US Dems)

Practicalities
- see above
- Socialism =/= planning. There is no good evidence that planning works. "given the dubious record of central planning, we have to seriously consider that a post-capitalist economy might have to take the form of some sort of market socialism... What’s important is that whatever the market socialism’s institutional structure, the principles underlying its design are faithful to what socialists seek—of putting people before profits."

[Kait McNamee · Rating 4 out of 5]

If you missed basic economics classes like I did (all honors, but there is apparently no honor in basic economics) and you were taught that trickle down economics was a viable method of wealth distribution, this book is for you. Please, please read or listen to it.

[Differengenera · Rating 2 out of 5]

effectively a collected reprint of his ABCs of socialism. more inclined to indict the patients terminal case of Kautskyitis here cos it's a book

[Tommy Gittings · Rating 4 out of 5]

In my opinion this book mostly achieves what it sets out to do, presenting convincing arguments as to why capitalism is fundamentally problematic and why the solution must come from a combination of political and union power. My only criticism is that it does not touch on how to deal with large companies whose power is somehwat decoupled from their workforce, either because the workforce is located in a different part of the world to where the comany exerts its influence, or because the company does not need need a large workforce relative to its impact (as in the case of some tech companies).

[Maya Statham · Rating 4 out of 5]

A genuinely very well written analysis that explores the flaws of capital in a way that is both relatively in-depth, but also not mind-numbingly arduous to get through. The part I most enjoyed was the very last chapter, which sought to examine soviet attempt and failure of the implementation of socialism and the lessons we can take from it, also providing a compelling criticism of the neoliberal ‘left-wing’ politics of the west, most especially the US, and how far removed it has become from the interests of workers, rounding out a cogent argument for a gradualist approach, a revived labour movement, as well as the proposal that a post-capitalist economy must not revolve around central planning, emphasising a decent argument for market socialism. “A Left isolated from labour is a showpiece, not a political force”. So much more I could say about this honestly but I am now bored of writing my silly little review for my silly little 10 goodreads friends who most definitely do not care. :))

[Ellen Marie · Rating 3 out of 5]

Ugh, I KNEW this book would make me angry and yet I read it anyway because apparently I’m an idiot.

This is a great “why capitalism sucks 101” book, but those who are familiar with anti-capitalist discourse may find most of it too simple.

I did think the comparisons between socialism now v. the Bolshevik era was super interesting though! I genuinely never thought of how socialism has moved from the working class to academia and what that might mean.

“In a capitalist system, the state is structurally dependent on capital as part of its very essence. This dependence is built into the fundamental architecture of a state in a capitalist society.”

“As long as we are in a capitalist system, the state will have to respect the structural power of capital, and as long as it does that, there will be a limit to democratisation.”

[karolowaty · Rating 4 out of 5]

There is my second book in English, so this review should be also written in English. First of all I want to appologise about my gramar.

This book generaly explaining how capitalism work. After read I know more about conection between labor (workers) and CEO's (owners). It's sad how some of individual companies treats the employees on lowest level. I belong to "working class people" and I know how big the problem is. I really recomended this book for everyone who want to know more about our system.

[Jacob Wilson · Rating 5 out of 5]

Read this book. This is an incredibly succinct, tightly written, and compelling work by Chibber. In it, he provides clean, neat analysis and incisive insights into socialist strategies for social transformation.

While I do not share all of Chibber's conclusions, he very neatly sums up much of my own thoughts and strategies for social change, and maps onto my own trajectory as a person involved in politics and the labour movement. This is essential reading.

[Sascha · Rating 5 out of 5]

Concise and complete run through what it took me most of my academic life to understand and adds some quick connections and much more of a future plan than I've seen elsewhere. Great to have it all in one place, and it even provides such a solid base that it invigorated my enthusiasm.

[Amy Baudhuin]

short and sweet introduction to anti capitalist rhetoric- i found it to be a bit repetitive but interesting nonetheless!

[Evan Coveney · Rating 4 out of 5]

4.5

[Deena Newaz · Rating 4 out of 5]

A good primer to understand capitalism with accessible explanation of Marxist economic theory. The discussion of the cultural left is very interesting and at time wonky.

[Reid Flynn · Rating 5 out of 5]

wow. you could give this to an amoeba and give it instant class consciousness

[Garrigan Stafford · Rating 4 out of 5]

Great introductory book on anti-capitalist politics alongside a short but good motivation on what direction the left take.

Would recommend to anyone interested but new to left wing politics.

[Harper · Rating 5 out of 5]

Have you heard of this capitalism thing?? Pretty crazy. Capitalism situation is crazy. Free Diddy

[Josh Freund · Rating 4 out of 5]

A very accessible, relatively short primer on the (ever more glaring) problems inherent in capitalism, the importance of labor organizing, and some brief thoughts on where we might go from here.

I appreciated that for Chibber the solution wasn’t as simple as “socialism!”; he came off as realistic and clear-eyed about the shortcomings of certain implementations of the above and the need to thoughtfully transition from the current system, even while wanting to head more in that direction, which I found refreshing. Similarly, he touched on some of the weaknesses present in how the U.S. Left approaches organizing, the rampant moralizing and opining on identity politics without actually affecting change, and so on.

I did wish he had spent time in the final chapter analyzing and drawing lessons from the Nordic social democracies or “interesting experiments with workers’ control in some Soviet satellites” he alluded to; alas, the book ended quite suddenly without really diving into either of those.

One other (minor) quibble would be that the material felt repetitive at times, though this admittedly could be helpful for someone to whom all of this was new.

All in all, a worthwhile read, especially considering its brevity.

[Kate Page · Rating 4 out of 5]

This is a good clear explanation of Marxism, very readable and useful. It’s quite traditional, although not dogmatically so. Its major flaw is that it manages to ignore China altogether, while stressing the importance of understanding exactly what happened in Russia, and learning from this. Hmmm.

[Benjamin · Rating 4 out of 5]

I’ve don’t read Jacobin magazine anymore but I do try to read all the books they put out in their collaboration with verso. This is around the 20th book I’ve read in that collection. I find each of the books to be insightful even if I don’t fully agree with them.

This one completely slipped by me last year but I got a copy of it for Christmas and flew right through it over the last 3 days. Chibber’s talent here is distilling a lot of theory and history into a readable 150 page essay on capitalism and how it relates to our daily life. While the writing in here is textbook/academic it is never pretentious or too complicated to get through. Each section methodically builds on itself to make a fascinating case for a direct confrontation with Capital/Capitalism.

Chibber makes a case for a working class labor movement as well as an electoral movement to advance the needs of everyone. I’m not sure how I feel about electoralism right now but I agree that a stronger labor movement would benefit everyone.

Chibber makes a scathing rebuke of the current left in this country by identifying its mostly separate from the actual laboring masses, as it resides in non profits and college campuses. I think this is one of the more important insights of the book. Until the labor movement moves back with the laboring masses it’s dead on arrival for the time being.

There is a long section of recommended reading at the end of this which shows how researched this book was. It’s pretty impressive because it doesn’t seem like it’s everything that went into this.

Overall this is a neat little book and one you could easily hand a friend or coworker to read.

[James Shaw · Rating 4 out of 5]

This book is well written and the ideas are well presented. I couldn’t agree more with his view of the modern Labor party and how it’s occupied and supported by students and professionals interested in lifestyle politics and seeking higher morality instead of by workers united for collective change.

It is a little dramatic in stating how things are for workers. I grew up in a working family and was a 'worker' in construction before starting my own business and becoming a 'capitalist'. Ninety-nine percent of the other business owners (capitalists) I know started as 'workers' and did not come from a capitalist family. So his claim that workers have little power to change their circumstances is a little dramatic. It can be hard, but it is very possible.

It is also inaccurate stating the instability/job insecurity is a workers only problem. There is a lot of instability and insecurity when running business (being a capitalist). Both workers and employers face instability. I have been in both scenarios and can say that the problems are different, but both face instability and insecurity.

I do however agree that overall, more social support is good for society. Higher taxes on the super wealthy are certainly necessary to redistribute wealth. However, like everything in life, it is about striking the right balance.

[Kaylin · Rating 4 out of 5]

I felt like a lot of my thoughts were finally being articulated and organized by reading this book rather than being a jumble in my head.

It was very informative and digestible. I didn't have any trouble following what was being said. It was explained very well and in a respectful tone that I think would probably not alienate a reader if they had differing views. My only quam was the solutions chapter at the end, I am not satisfied with. I almost feel like we need a sequel that breaks that down even further because the solutions are so complex and varied it could be its own book. A deeper analysis of why communism has never worked/actually been implemented properly (what worked and what didn't in those executions), also what the Scandinavian countries achieved and how, as well as potential new political paths that have yet to be explored. These were all briefly mentioned, but that is what I would most like more elaboration on.

[Leo · Rating 3 out of 5]

Good on the basic structure of capitalism, quite bad on the state (extremely US-centric), better on class struggle. A decent quick summary of the lessons of the Bolshevik/Soviet experience, though this is the only past experience it discusses. Nothing on imperialism or internationalism. Very US-centric in its examples. Surprisingly, makes no attempt to give the reader an account of where we are in history, what the nature of the present crisis is, or why Marxism is best able to explain it (e.g. drawing on the Brenner argument about a long downturn driven by overcapacity in global manufacturing). No mention of the financial crisis or discussion of the climate crisis. A fairly useful entry-level introduction to some of the most basic and fundamental tenets of the Marxist critique of capitalism, very clearly and readably written, but could have been much better.

[Amanda books_ergo_sum · Rating 4 out of 5]

This is an EXCELLENT anti-capitalist book, for three reasons:
✨ it’s authentically old-school Marxist
✨ it’s one of the most beginner-friendly anti-capitalist books I’ve ever read
✨ this isn’t a book about capitalism with a solutions chapter tacked on the end—the entire book is a solutions chapter

This book was all about how and why labour movements plus voting (and not just voting alone) is essential for social justice.

So why four stars? There’s a tiny detail in here that currently sits on a fault-line in my brain: he’s such a classical Marxist that he prioritizes labour over other Leftist stuff like gender and race—not because he doesn’t care about it, but because he thinks labour is capitalism’s Achilles’ heel. My gut says this is bad (I like the cultural turn in Marxism 😅)… But he has a book focused entirely on this detail so I'll keep an open mind until I read that one.

[Jacob · Rating 4 out of 5]

yeah im ngl, i read this because I need to hit my goal, its a good, brief starter into capitalist critique … for further reading I would recommend just looking at all the books in my reading list that are basically this book

at this point every time I read one I think im just coping with my material reality and the unchanging, immovable presence of the for profit system that dwindles at my psyche like a marble sculptor … feasting at the left over pebbles and breathing the miasma of stone dust and dried blood … listening to The Free Wheeling Bod Dylan, Bob Dylan’s 1967 studio album … I love bob dylan man hmhmhmhm if they tell you bob cant sing you a duty bound to, forth rope, suplex them. thats for you adam fuck you bob is a goat “can write can sing” fuck you man

[Antonis Maronikolakis · Rating 2 out of 5]

A bit too introductory. Very little is covered for most of the book. If you are familiar with the basics of capitalism and main challenges/downsides, you will not get much out of this. No data is presented, large generalizations are made (the author, like a lot of the left in the US, has a unrealistically positive view of Europe) and there is little content. The last 20 pages or so are the most informative, where the author moves on to more subjective analysis. There, we are getting some useful insights and ideas, but they are not elaborated on and mostly look like an afterthought. A shame, considering this was the most interesting part of the book.

[Kathy Mcconkey · Rating 4 out of 5]

A basic primer on how the market functions and how it cannot be relied upon to solve some very fundamental human problems we have. What is socialism and how it comes about is also covered at the basic level. Interesting perspective on revolution versus reform. Info on Russia was helpful, but would like to know what happened in China. Served the purpose I had for reading the book (basic knowledge), but I'm sure more educated readers will be disappointed.

[Eric G. · Rating 5 out of 5]

A basic and succinct primer on the critique of capitalism without the typical jargon to weigh it down. It's logic is clearly laid out and builds on itself methodically. It is free of internecine babbel of the chattering class. It is a book on class written for the poor and working classes rather than for fellow private college proffesors and students
This is a book you can give to your family, neighbors and co-workers without a second thought.