Essay: Capital Monopoly
Foster and Magdoff define capital monopoly as new kind of monopoly in the capitalistic economy that involves economic transformation resulting to advanced economic accumulation of capital. During the economic transformation, economic remains constant (stagnant) while primarily depending on the financial speculation that sustains the small economic growth taking place in the economy.
The reduced capital production is brought about by maturation of the building up process in the advanced capitalistic economy and the end result is stagnant financialization. The stagnant financialization is a tool that creates power and wealth hence a resultant capital monopoly. The monopoly capital arises due to economic stagnation and accumulation of capital along with investment in mature economies. Monopoly capitalistic economies problems arose since economic policy did not find the essence of expanding the finance sector through acquisitions, employment creation, mergers and financial market growth hence a stagnant financialization arising.