Czech anthropologist and historian Ivo Budil distinguishes between what he calls “manifest” and “latent” capitalism. According to him, manifest capitalism tends toward the destruction of production and productive sectors altogether, until little remains except speculation and perpetual warfare. Latent capitalism, by contrast, fosters the development of manufacturing, science, technology, and the broader foundations of real prosperity.
In latent capitalism—the “good” kind—capital is subordinated to political authority. In manifest capitalism, the relationship is reversed: politics becomes subordinate to capital.
Coincidentally, a few days ago a similar framework was presented by Nick Cohen, one of the more prominent intellectuals associated with the American Democratic establishment. But he sees the matter in precisely the opposite way. For him, the greatest possible disaster would be a world in which investment funds, multinational corporations, and billionaire elites were subordinated to national governments. He labels such arrangements “kleptocracy,” borrowing a term long promoted by George Soros.
As his most objectionable examples, Cohen points to Hungary, where national government retains real authority over capital, and to Trump’s America, where even the wealthiest magnates hesitated to openly challenge the state.
Keep this in mind the next time you hear alarmist rhetoric about “threats to democracy” or “creeping dictatorship.” What is really at stake is not dictatorship over ordinary citizens. It is the question of whether there will be any limits left on the power of big money.