Based on Maurice Dobb's views about how primitive accumulation of capital was central to the emergence of capital

1. GROUP 2
M.A. ECONOMICS
(2016-18)

2. •CLASSICAL FEUDALISM
9-12TH CENTURY
•CRISIS OF FEUDALISM
12-14TH CENTURY
•TRANSITION PERIOD
(Petty commodity production)
15-17TH CENTURY
•EMERGENCE OF CAPITALISM
•INDUSTRIAL REVOLUTION (1760-1820)
18TH CENTURY ONWARDS

3. ACCUMULATION
by Karl Marx
OWNERSHIP of assets
TRANSFER of property
Mere flow of money is not capital
Labour itself becomes a commodity
Creation of two classes in the
society in an unidyllic manner

4. ACCUMULATION
by Maurice Dobb
• CONCENTRATION of titles of wealth in the
hands of bourgeoisie class
• DISPOSSESSION OF MAJORITY
from access to resources

5. How did the
Capitalists amass such
a great
Volume of
Wealth?

6. WAYS TO INCREASE OWNERSHIP
• Exchange of durable goods of
old class with non-durable
goods or money of new class
• An increase in income from
windfalls gains such as
Increase in urban rent
Exploring new channels of
trade
• Increase in capital value of
property
• Acquisition of property at
cheaper rates and realization at a
higher rate later when the market
value stands high in exchange for
labor power and industrial
equipments.

7. PHASES OF DOUBLE TRANSACTION
•Increment in the value of property between the two phases.
•Special circumstances necessary for the increment in value of
property

8. Why are the two
phases regarded as
SEPARATE rather than
being CONCURRENT?

9. Phase of realization did not exist.
Development of credit and banking
mechanism is complementary to the
development of capitalism
Facilitates the conversion of frozen assets
(public debt or land assets) into liquid
assets.
There would be no class as a whole to
which the bourgeoisie class would sell
assets to.
Main contention is not mere acquisition of
wealth by capitalists.
After a large reserve army of labor had been
created, only wages to workers had to be
provided.
One stratum of bourgeoisie was still selling real
estate to other stratum of bourgeoisie.
The growth of unstable ‘country banks’ in the
early 19th century reflects the inadequate
development of the banking system
Realization has a major significance as a
period of shift in bourgeoisie preference
from real estate to means of production
PAUL M.SWEEZY MAURICE DOBB

10. Manorial production declined in 13th -
14th century.
Expected streams of income were not
high. Value of land started falling.
Rich farmers started buying land for
production, while merchants for
speculative gains.
The large influx of bullion from
America in 16th century caused fall in
value of metals compared to
agricultural and crafts products.
FALL IN MANORIAL PRODUCTIVITY

11. Money supply increased. Prices increased
leading to the PHASE OF PRICE
REVOLUTION.
Fall in Prices of land at decline of feudalism
Check on Land Prices
Aristocratic merchants to gobble up land from
feudal lords and independent small peasants
at lower prices.

12. 16th PRICE REVOLUTION IN ENGLAND
SOURCE: David Hackett Fischer, The Great Wave

13. PUBLIC DEBT
• During 14th-15th century, existing property changed hands on a
considerable scale.
• To run the administrative expenses, crown and nobility floated the public
debt to big merchants in return for TAX COLLECTION RIGHTS, e.g.
debts owed to city of Royalists reached £2mn.
• Growth of banking institutions + Extension of crown borrowing + State
debt
Promotion of bourgeoisie accumulation

14. TOP
• Great Financiers (Specialized
on exchange transactions)
MIDDLE
• Tradesmen and Merchants
BOTTOM
• Poor shopkeepers and distressed
artisans

15. COLONIALISM
Since 1415

16. INDUSTRIAL DEVELOPMENT
• Requirements
• Home market for manufactures was limited
• Needed virgin lands across sea to expand market
Expansion of markets for products
Expansion of sources for raw material
Prosperous middle bourgeoisie were a thrifty
class
Standard of living of masses low

17. • IRFAN HABIB: No CAPITALISM without
COLONIALISM
• Forced mining of silver and gold (112.5 metric
tonnes imported annually )
Favourable balance of trade
internal ( export) prices
external (import) prices
• Little attention paid to effect of this policy on depressing demand price

18. COLONIAL COERCION
Serve needs of parent country Control production
Use monopoly to drain gold and
raw material (cheap)
Later sale of exports chief concern
Import restriction ( except on raw
materials )
Prohibit manufacture of
commodities which compete with
exports
Forced colonial profit = plunder

20. A legal process of
Enclosing a Number
of Small
Landholdings to
create one larger farm
Consolidation of
the strips into
Fenced Fields
The division of the
Commons among the
Individual Villagers
MEANING

21. The open field system prevented improvement
Wastelands and common pastures were full of
scrubs
Those who survived on commons were inefficient
ARGUMENTS IN FAVOUR OF ENCLOSURE

22. ENCLOSURES
&
PRODUCTIVITY
ALLOWED
INTRODUCTION OF
LANDLORDS
INCREASED THE
RENT

23. CONSEQUENCES OF ENCLOSURE
Destroyed the social fabric of village life
Landless people were deprived of general access
to open places for grazing
Much of enclosure before 1780 , was probably
labour shedding
Enactment of General Enclosure Act, in 1801 by the
Parliament
Emergence of classic Capitalist structure of English
farming
Transformation of farms into Economic units
Landlord class reaped benefits from the enclosure movement
& the rise of yeomanry from the ranks of English peasantry

24. “It was the consolidation of the
Yeoman Oligarchies that
decisively changed the Realities
of Village Life.”
David McNally

26. REACTIONS TO ENCLOSURES
Riots took place
1) IN 1607, MIDLAND REVOLT OCCURRED IN
NORTHAMPTONSHIRE AS A PROTEST AGAINST
THE ENCLOSURE OF COMMON LAND
2) NEWTON REBELLION

27. ENCLOSURES & THE INDUSTRIAL
REVOLUTION
EMERGENCE OF
NEW TECHNOLOGY
(Industrialized
methods of weaving
wool were invented)
ADVANCED
CROPPING SYSTEMS
WERE DEVELOPED
(Replaced many Laborers
& they move to Cities)
CREATED A
VERITABLE
RESERVE ARMY OF
INDUSTRIAL
LABOUR

29. MALTHUSIAN THEORY OF POPULATION
EXPONENTIAL
GROWTH OF
POPULATION
CREATION OF
EXCESS
LABOUR FORCE
RESERVE
ARMY

30. DOBB’S REFUSAL OF THE
MALTHUSIAN POPULATION THEORY
A
• INSIGNIFICANT GROWTH RATE OF POPULATION
DURING 14TH -16TH CENTURY IN EUROPE
A
• “PLAGUE OF BEGGARS” EMERGES IN EUROPE
A
• LACK OF AVAILABILTY OF FOOD LEADING TO DECLINE
OF POPULATION
GROWTH OF THE PROLETARIAT WAS AN INDEPENDENT
PROCESS

31. DEVELOPMENT OF PROLETARIAT
. .
LAW OF MAXIMUM
WAGES
STATUTE OF
ARTIFICER
1563
ESTABLISHMENTS OF
‘POOR LAWS’
VAGABONDS
& BEGGARS
ACT 1495

33. INNOVATIONS IN THE INDUSTRIAL REVOLUTION
SPINNING JENY
•Invented by james hargreaves in 1764
•Led to huge rise in the production of
finished cotton as one can now spin many
threads with a single turn of wheel

34. WATER FRAMES
•INVENTED BY RICHARD ARKWRIGHT FOR
PRODUCING YARN
•THE MACHINE USES WATER WHEEL TO
PRODUCE YARN OF CORRECT THICKNESS
POWER LOOMS
•USED WATER AS POWER INSTEAD OF HUMAN
POWER THUS SPEED UP THE PROCESS OF WEAVING
•ITS HIGH SCALE PRODUCTIONS MAKES CLOTH MORE
AFFORDABLE THUS LEADING TO HIGH DEMAND &
STIMULATES EXPORT GROWTH

35. STEAM ENGINE
•Developed by james watt in the
year 1769
• Helps in rapid transportation of
raw material & workers from one
place to another
SPINNING MULE
• It is a combination of spinning jeny &
water frames
•Used for spinning cotton & other
fibres in the mills

38. DAVID HARVEY
Capital can be created through a variety of means
In today’s world, capital is accumulated both through
Exploitation of Labor Power & Primitive Accumulation
Privatization , Financialization, Management of crises &
State Redistributions played a key role in accumulation of
wealth & power among the richer class
Spatial Expansions play an important role in
maintaining capitalism
Capitalism cannot be understood by focusing only on
Extraction of surplus value through wage labor

39. Dobb,Maurice.1946.’Studies in the Development of Capitalism’
Harvey,David.2003.’The New Imperialism’
Marx,Karl.1867.’Capital,Volume 1, Chapter 26: The Secret of Primitive
Accumulation of Capital’
Hilton, Rodney.1976.’Transition from Feudalism to Capitalism,
Introduction’
Habib,Irfan.1995.’Capitalism in History, Volume 23’
www.thelandmagazine.org.uk/articles/short-history-enclosure-britain
www.jstor.org/stable/2597236
Wikipedia.org