In his latest book, Unending Capitalism, Karl Gerth argues that the Communist state prioritized rapid industrialization over building socialism—directly contradicting its socialist rhetoric. The Chinese economy of the Mao era (1949–76), therefore, was a form of “state capitalism” shifting along the state-to-private spectrum as the state tightened its control over the economy or relaxed it, as in the years of New Democracy during the early 1950s and the 1960s, following the failure of the Great Leap Forward. In this context, consumerist trends were consistently encouraged by the state when they were perceived as contributing to capital accumulation. The state, in fact, promoted select goods for mass consumption (a crucial aspect of consumerism) and fueled consumerism by adopting capitalist policies, including advertising and competitive branding, with the ultimate goal of accumulating capital to channel into industrialization. Consumption of these select goods was accompanied by the emergence of a popular discourse about them and the construction of social identities—two additional traits that Gerth defines as typical of industrial consumerism.
The book is organized into seven chapters. Chapter 1 focuses on the consumption trends that developed around three luxury goods: wristwatches, bicycles, and sewing machines. Chapter 2 discusses the Communist state's choice to prioritize capital accumulation after 1949. Chapter 3 explores the influence of the Soviet model of “state consumerism” and consumption trends linked to Soviet-style fashion. Chapters 4 and 5 focus on state strategies for promoting select consumer goods and the management of the distribution apparatus, respectively. The two remaining chapters discuss consumption during the Cultural Revolution (chapter 6) and the Mao badge fad (chapter 7).
Based on an impressive array of sources, this book offers an in-depth view of consumption during the Mao years. Gerth convincingly proves that consumption played an important role in the state effort to promote capital accumulation and that the people responded enthusiastically to the opening of limited opportunities for the acquisition of luxury goods. Above all, this book tells a fascinating story about how commercial products become tools for negotiation between state goals and people's expectations for material wealth and for social identification beyond socialist uniformity.
However, this book suffers from an oversimplification in defining some of its key concepts, including “consumerism.” Discarding the wider context (p. 5, 233n1), Gerth focuses narrowly on consumption practices linked to a limited number of luxury products promoted by the state. As a result, we almost forget that even the basic necessities were rationed during this period and scarcity characterized the economy. It was this background of scarcity, in fact, that determined the luxury value of the items discussed by Gerth. Consumption of these goods constituted a notable exception, rather than becoming “more commonplace” and fueling the expansion of consumerism (p. 10).
In addition, reading through the book, we realize that these goods were not produced or consumed in mass quantities. Their availability was limited, as chronic shortages affected their distribution. They were intended for consumption by a select portion of the urban population in an overwhelmingly rural country. What Gerth describes is a culture of consumption and a consumer experience very different from consumerism, which is associated with an economy of plenty (real or perceived) in which a large portion of the population participates (consumer society). In the absence of a mass dimension, a crucial aspect of industrial consumerism, the question arises of whether the pursuit of a vaguely defined “material desire,” the creation of social identities (a practice predating capitalism), and the development of a discourse surrounding commercial products (which in Mao's China developed around and in response to state propaganda and in a context of scarcity) can really be equated with consumerism.
Oversimplifying the definition of consumerism contributes to the flattening of very different historical and economic circumstances, a problem that cannot be solved by just adding a qualifier to the term (“state consumerism”). This oversimplification allows Gerth to associate consumption trends in Mao's China with industrial capitalism (an association that cannot be sustained merely by the reinvestment of capital extracted through consumption into the industrial sector) and acratically posit it in direct opposition to socialism.
Because Unending Capitalism is a controversial book—and it was clearly intended to be so—it will generate further debates, leading to two main positive consequences. By attracting attention to consumption in the discussion of the economy during the early People's Republic, it will stimulate a more nuanced understanding of this period. In addition, Gerth's comparison with the Soviet Union will encourage future works to take a more global approach, initiating an important conversation with students of other socialist economies.
