

[…] the goal, which, unless we are not both communists, is to end the rule of markets over the world […]
I shared that perspective until it was brought to my attention that capitalism is not synonymous with a market economy. In case you’re interested, I’ll excerpt the most relevant chapter of the book that brought it to my attention, but otherwise I’ll cut straight to the Marx of it and note that he examines the configuration of precapitalist market economies in both slave and feudal societies in Capital vol. 3.
Excerpt
from Socialism with Chinese Characteristics by Roland Boer:
Chapter 5.2.2 - Market Economies in History
This point is rather straightforward: market economies have existed in many periods of human history, but they have by no means been capitalist market economies. This reality was already foreshadowed in the text I quoted earlier, from 1979, where Deng Xiaoping observed that a ‘market economy was in its embryonic stages as early as feudalist society’. Further, on a number of occasions he offered the comparative point that a planned economy is also part of capitalism, the more so during times of economic difficulties. While most Chinese scholars make similar observations, neither they nor Deng were the first in the Marxist tradition to deploy historical arguments in relation to market economies.
The first was actually Marx, in the third volume of Capital(1894b, 583–599; 1894a, 588–605), where he examines the market economy of ancient Rome. His concern is to trace the effects of “usurer’s capital”. Found in the ‘most diverse economic formations of society’, in Rome a portion of this capital led to commodities, money, trade, borrowing, surplus, and profit. In other words, we have some of the core components of a ‘market economy’. But is it a capitalist market economy? Not at all. It is a slave economy, for its primary purpose was to find, transport, and buy the labour of others as slaves. The whole market economy of ancient Rome (and indeed ancient Greece) was geared for and subordinated to this purpose. Marx subsequently outlines the way some of these components worked: usury, interest, surplus, money, labour, and so on, were arranged quite differently and functioned in ways that are far from a capitalist market economy. Or, if they do at times seem similar, they function in ‘altered conditions’, without a capitalist framework (Marx 1894b, 587, 590; 1894a, 592, 595). Marx moves on to outline how some elements of feudal markets worked, and then how the different constellation of a capitalist mode of production overturned and reconfigured many of these earlier features (especially usury). For Marx at least, market economies are not all the same and do not function in exactly the same way. They may have some components in common, and to a casual observer such market economies may appear to be similar, but it is both the arrangement of the parts in relation to each other and the overall purpose or function of the market economy in question that indicates significant differences between them.
We may add to Marx’s initial thoughts that it was precisely a slave market economy that was a major component of the Ancient mode of production of both Greece and Rome (Boer and Petterson 2017), and that the ancient Persians of the first millennium BCE developed a military market economy by deploying the relatively recent invention of coinage (Boer 2015), and that the European feudal market economy was primarily focused on the estate’s own production and well-being (Kula 1976). I mean not local peasant produce markets, but state-wide and even empire-wide socio-economic systems of which market economies formed an important component. As Chinese scholars routinely point out, market economies have existed throughout human history and constitute one of the significant creations by human societies (Yang J. 2009, 174). But they also point out that these market economies are by no means capitalist in nature, since they are shaped by the socio-economic system of which they are a component: to assert otherwise is—as Deng Xiaoping made clear—to become dogmatic, or to fall into what we may also call ‘economics imperialism’, in which the assumptions of a capitalist market economy (and its economic theory) are de-historicised, de-socialised, universalised, and superimposed on any historical market economy, thereby skewing analysis (Milonakis and Fine 2009; Fine and Milonakis 2009).
Thanks for linking to it! Like a much-needed wash, I found relief I didn’t entirely know my brain needed in reading Boer’s straightforward synthesis of the history and theory of Dialectical and Historical Materialism as it applies to the particular experience of China.