The Fallacy of Capitalist Innovation

Cereal, Marcuse, and debunking Hayek's theory of capitalist innovation

Having the choice between thousands of brands of cereal is not innovation. It is at most an imitation; just an endless series of almost identical cereal boxes. Rip-offs on rip-offs.

Cereal brands: contributing to one-dimensional society

Marcuse would argue here that mass production and distribution of cereal contribute to the “one-dimensionality” of society. Just like other corporations and agents under capitalism, mass production and distribution shape human needs and thoughts; they “claim the entire individual” (Marcuse, 1991, p. 10)[1]. Individuals develop an immediate identification with their society, and society as a whole. In Marcuse's words, identification with society is called mimesis, while the internalisation of mimesis in individuals within a technological society constitutes alienation in its extreme form. Alienation takes all forms everywhere, including cereal boxes in a supermarket, and constructs the one-dimensional society.

Hayek: the Kellogg’s stan

Yet, in Hayek’s view[2], this cereal shelf embodies progress and innovation at its finest. The plethora of cereal boxes laying here just before our consumerist eyes is almost too good to be true. This wonder is only possible under neo-liberalism, a system in which Hayek believes agents are free - meaning they are not coerced by anyone - and where progress can flourish driven by inequality. Inequality is apparently not a problem in the Hayekian world. In fact, it is even beneficial to progress, which Hayek defines as the adaption to new conditions and the gaining of greater knowledge. Indeed, the rich classes permit to progressively reduce the prices of the consumerist goods by their consumption of innovative and expensive cereal. Eventually, everyone will get to purchase a cereal box from a supermarket shelf. On the other hand, equalising is Hayek’s worst nightmare as it will hinder innovation and progress. Overall, Hayek thus argues that progress is driven first and foremost by the access to consumer goods. In other words, societal progress is driven by cereal brands.

‘Hayek as Tony the Tiger’ - Andrew Craig (2021)

How Hayek reinforces one-dimensional society

In Hayekian society, progress can only take the form of consumerist goods such as cereal boxes. Indeed, Hayek strongly opposes any form of state intervention except if the state must protect property, as he believes any other forms of state intervention would be a form of coercion. However, a tension arises in his theory: how could he stand against coercion but think that the masses are supposed to follow passively the way of life and consumption of the higher classes? In this case, people do not have a choice. The range of choice between thousands of cereal brands constitutes a mere illusion of freedom produced by firms and higher classes. For individuals this does not imply freedom but coercion because they are led to think they have these false needs for cereal; yet these needs are no product of their autonomy. Consumerist products indoctrinate and manipulate individuals by promoting a false consciousness as they spread around; they become a way of life, the one-dimensional society.

Hayek's theory of capitalist innovation is not progress. His argument implies a society dominated by the higher classes and corporations which seek to perpetuate a repressive and capitalist norm in order to self-sustain. In that way, Hayek's theory of capitalist innovation is reproducing and reinforcing one-dimensional society by making more cereal brands, more cereal flavours, more cereal boxes and more replicas of one-dimensional thought. One-dimensional society is a self-preserving repressive society, as it strips individuals from their own critical thinking and coercively imposes upon them repressive needs. Marcuse writes that this imperative of one-dimensional society is “self-expanding and self-perpetuating in its own preestablished direction driven by the growing needs which it generates and, at the same time, contains” (Marcuse, 2002, p. 37)[3]. Marcuse invites us to call into question the perceived state of innovation and freedom under coercive advanced capitalism; to liberate ourselves and develop multi-dimensional thought.

Words by Anaelle Thoreau

Illustration by Andrew Craig

Refrences

 [1] Herbert Marcuse, 1991, One-Dimensional Man.

 [2] Friedrich A. von Hayek, 2011, The constitution of liberty: the definitive edition, University of Chicago Press, Chicago.

 [3] Herbert Marcuse, 2002, One-dimensional man: studies in the ideology of advanced industrial society, Routledge, London.