Corporate Control and Economic Development

Marx’s theory of finance capital has received little attention among social theorists. The theory of finance capital was central to the writings of early 20th-century Marxists, such as Hilferding ([1910] 1981) and Lenin (1917). These theorists identified a new stage of capitalism marked by the ascendancy of finance capital. ¹ Marx argued that over the course of capitalist development, three species of capitalists emerged: industrial, finance (money), and landowning capitalists. ² All share three forms of surplus value: profit, interest, and rent. The development of finance capitalists and landowning capitalists, however, presupposes the existence of industrial capital (Balinsky, 1970).