Ellen Wood’s seminal work, The Origin of Capitalism, was published in 1999, on the cusp of the 21st century, as part of a conversation among what remained of the Marxist left on how to best combat what they termed “globalization”. It was republished in 2017, with Verso books. It included an added introductory note explaining that “neoliberalism”, then the term in vogue with the same general ideological circles, could also be understood as an enemy of Wood’s work. This was, and is, an admirable goal, and it is difficult to fault Wood for her frustrations with the Marxist left’s historiography of capitalism up until that point. Nearly twenty years of failed resistance had only heightened the sense that too many people succumbed to the siren call of granting capitalism a sense of unearned inevitability. One can understand Wood’s desire to confront the “begged questions”, as she writes, in modern assumptions about capitalism’s origins as a way of pushing back against the slow surrender of any of capitalism’s ideological opponents, both at the end of the 1990s and in the beginning of the post-2016 reality of American politics.
Unfortunately, the timeliness of the project and the nobility of its aims do not distract from the failures of the book as a work of historical research and analysis. The thrust of her argument, that the origins of capitalism can be traced to changing social relations in the context of property and commodity production, feels sound, but the extent to which she insists on the primacy of English rent markets in the 16th and 17th centuries without adequate evidential grounding, while shoehorning a wide variety of prespectives from classical economics to historical materialism into a single bloc of universally inaccurate suppositions, remains unsupported throughout the work.
Wood’s focus on rent markets, and her subsequent claims that they were the drivers of changing social relations in the English capitalist economy, leaves her open to the same criticisms of confusing opportunity for imperative that she levies at her opponents. When elaborating her thesis on the agrarian origins of capitalism, she claims that the surveyors computing the new, non-customary rents did so “on the basis of some more or less abstract principle of market value.” This claim pre-supposes a competitive market for rent, before the speculation of value that created inputs for that market; that pre-supposed market for rent thus assumes that the intentional and political creation of this rent market that was, since she claims it was not borne out of a competitive market for the commodities produced on that land, born out of an already existing profit seeking motive in the landholding class. That existing motive for profit seeking cannot, she claims, have already existed in feudalism, as she rejects the traditional view of historical materialists that capitalism was borne out of the interices of feudal society, but it also could not have come about organically, as she rejects the idea of a natural human predisposition towards profit seeking behavior. From where, then, does it come? This question remains unanswered, prompting us to wonder what gains, as Marxists, could be had by abandoning the concept of historical materialism when searching for capitalism’s alternatives.
Wood’s work also seeks to reject the notion of “failed transitions”, namely those of the Italian city-states and the Dutch republics, but in doing so once again fails to create fully supported arguments or reckon with the implications of her definitions, particularly in regards to the economics of the Low Countries. When discussing the mechanisms by which the Dutch Republic sought to protect and promote international trade, Wood claims that their tools were entirely “extra-economic”, namely those that involved military force. These tools are offered as proof-positive that the Dutch still operated on pre-capitalist models. This belies a history of counter-examples that cut both ways; not only did the Dutch often operate on profit-maximizing principles internationally that worked counter to extra-economic aims (their relationship with England foundered in the late 16th century because they would not stop trading with the Spanish despite being at war), the British empire made extensive use of the aforementioned tools long after their supposed rupture with commercial economic dictates. In fact, recent scholarship by Asheesh Kapur Siddique, among others, extensively demonstrates the falsity of English reliance on ‘improvement’ as justification for imperial conquest, showing that well into the 18th century the form of governance that colonies in India, that largest of British holdings, should take, arguing that the British heavily relied upon archives of native Moghul rulers for extraction of economic surplus.
All of this also goes without confronting Wood’s unsubstantiated claim that Dutch domestic producers were not subject to market imperatives, as those claims are relatively unsourced and do not make use of extensive studies of the Dutch economy, such as Jan de Vries and Ad van der Woude’s extensive De Eerste Ronde van Modeme Economische Groei, that have been part of the debates on the subject since the late 1990s. Dutch linen production, for example, operated under identical imperatives to the market for leases that Wood describes, with domestic producers being subject to internal competition on a national market. That these products were shipped overseas, rather than produced for domestic consumption, might be a convincing avenue of argument to follow and explore further, but Wood forgoes that possibility and instead writes off the Dutch domestic economy as one still operating under commercial, extra-economic modes of value extraction. When putting forward the reasons that the Dutch economy should not be viewed as one operating under capitalist imperatives, Wood often falls back onto demographic data of Dutch and English peasant classes. This inadvertently supports the idea that the Dutch, as a result of an insufficient peasant class upon which to exert the market imperatives already experienced by the ruling classes, were in fact one of those “failed transitions” that the central thesis of her work claims cannot exist.
The argument that capitalism requires a large rural population that can be subjected to market imperatives on the basis of their relationship to their land is one that could certainly be explored, in addition to the other interesting arguments offered by a comparative study of Dutch and English economies. However, by rejecting any possibility of a “failed transition”, Wood forecloses on those studies entirely. Her suspicion seems to be that by suggesting the Dutch failed to transition into capitalism, one is proposing that capitalism is a natural state to progress into from feudalism. My attachments to historical materialism aside, this appears to me to be a form of analysis that disregards real evidence of market imperatives. To admit that the Dutch domestic economy operated on the same market imperatives does not mean that it was a result of natural human inclination; rather, it invites us to a deeper study of how, exactly, these imperatives come about, one that creates a more robust argument that resists accusations of strawmanning. That Dutch social relations depended on intra-market competition that demanded improvement might put the lie to her specific argument about capitalism’s English origins, but it does not necessarily invalidate the broader point of capitalism’s specificity.
On a broader scale, the work suffers most when it chooses to eschew consideration of still-unsettled historical debates on matters that form fundamental supporting pillars to Wood’s argument. Whenever it occurs, it only calls more attention to the additional substantiation that many of Wood’s claims require. When Wood asserts that “landed classes succeeded in shaping the [English] state to their own changing requirements”, it only highlights the fact that these “landed classes” were composed of different social groups with widely varying relationships to both land ownership and productive forces, and that the methods by which disparate members of these landed classes shaped said state are still a matter of active historical debate. This also becomes apparent when making claims that would be contested by the historians with whom she is arguing; when, as mentioned above, she asserts that the ‘abstract principle of market value’ dictated terms of the rent market, she chooses not to bolster this claims against the competing ones of classical economists that this market value would be determined by the values found in existing markets for the commodities produced on the land. Nor does she choose to explain or support claims of a lack of interest in improvement in the Dutch countryside, leaving her argument weak when contested with the realities of Dutch land reclamation projects. These are brushed away with the remark that these reclamation projects were not improvement because they were not motivated by ‘improvement’ in the capitalist sense, that of increased productivity for commodity sale, but, because she provides no evidence to refute the body of data that supports the opposite, her argument would not stand up to scrutiny by her ideological opponents.
Fundamentally, Edward Tverdek was correct when he wrote in a review that “Wood raises the questions we ought to be raising if we are to dismantle this tired orthodoxy.” It is worth considering capitalism’s origins as a specific institution, one made by the hands of humanity and thus equally capable of being challenged and dismantled. Uncovering the roots of capitalism in the changing of opportunity to imperative is a worthwhile goal, one that makes clear that humanity need not choose to subject itself to those imperatives and, broadly speaking, did not choose to do so until forced to by the fact of capitalism’s need to marketize the world under the barrel of a gun. Likewise, her desire to rescue the humanist values of the Englightenment from postmodernity is understandable and even sympathetic. Unfortunately, however, Tverdek was also accurate in saying that the historical materialist interpretation of feudalism’s contradictions resolving into capitalism is one that “Wood would like us to abandon, [but] the reader may be left wondering why we should.” His review, and mine as well, identify Wood’s tendency to unsympathetically portray the arguments of classical economists and orthodox Marxists alike in pursuit of her goal, which often works to her detriment when she provides little to no substantiation of more controversial claims. Hopefully, though, this means that, especially with the book’s re-issue in 2017, such a controversial work of scholarship can reignite historical debate around the man-made origins of the capitalist system.