James Aaron Sheehy. CAPITAL FLOWS AND THE LIQUIDITY OF
LANDSCAPES. (Under the direction of Dr. Deborah Dixon)
Department of Geography, July 1998.
Capitalism has lead to the establishment of distinct
social landscapes, which are reliant upon and adjust to
fluctuating amounts of capital flows. These landscapes
evolve in patchwork pattern due to the uneven development
existent within capitalism. In contemporary times, capital
flows have increased and quickened due to the combination
of "time-space compression" (Harvey 1989) and the agents of
government, technology, transportation, multinational
corporations, financial institutions, and communication.
The increased pace of capital allows businesses to move
operations more easily, thus giving them additional
economic options. Therefore, faster capital facilitates
the dynamism of these landscapes, causing them to transform
more expeditiously over smaller temporal scales. In order
to assess the impacts of the processes delineated above
this thesis will analyze capital flows and their ensuing
landscapes using observation, historical analysis, visual
anthropology, and quantitative data. Keywords: landscapes,
connectivity, landscape value, capital, structural decline.
CAPITAL FLOWS
AND THE LIQUIDITY OF LANDSCAPES
A Thesis
Presented to
the Faculty of the Department of Geography
East Carolina University
In Partial Fulfillment
of the Requirements for the Degree
Master of Arts in Geography
by
James A. Sheehy
July 1998
 
CAPITAL FLOWS
AND THE LIQUIDITY OF LANDSCAPES
by
James A. Sheehy
APPROVED BY:
DIRECTOR OF THESIS .:!> (=*
Dr. Deborah Dixon
CHAIR OF THE GEOGRAPHY DEPARTMENT.
Dr. Michael Palmer
DEAN OF THE GRADUATE SCHOOL.
Dr. Thomas L. Feldbush
Acknowledgements
Various individuals were responsible for helping the
author complete this project. I would now like to
recognize these unselfish people and their contributions.
I would first like to extend a huge debt of gratitude to
Dr. Deborah P. Dixon for her suggestions, insight, time,
energy, and support during all the phases of this project.
She is largely responsible for transforming a hodgepodge of
scattered ideas into a workable piece of literature. Next,
I would like to thank my partner Jennifer L. Knight who
through her love, endless support, patience, time, and
understanding helped make this goal a reality and my life
that much fuller. Also, I would like to recognize my good
friend Marc T. Smith for his assistance, humor, and
intuitive advice that made the picture taking phase of this
project all the more enjoyable. Lastly, I would like to
express my deepest thanks and heartfelt appreciation for my
parents, Mr. and Mrs. James J. Sheehy, Jr., whose guidance
in life allowed me to continue when things seemed at their
worst.
Table of Contents
List of Figures iv
Chapter I: Introduction 1
Setting the Stage 1
Methodology 9
Chapter Contents 12
Chapter II: Capital Flows 14
Defining Capital 15
Currents Trends Within Capitalism 25
Facilitators of Capital Movement 33
Chapter III: The Li<iuidity of Landscape 67
Introduction 68
Major Landscapes 7 8
Undermining Landscapes 105
Chapter IV: Conclusions 110
Bibliography 113
List of Figures
Figure 1 Garbage Mound 4
Figure 2 Cahokia Mounds 4
Figure 3 Casino Queen 6
Figure 4 Elements of Capital 22
Figure 5 Effects of Increased Connectivity 29
Figure 6 Facilitators 35
Figure 7 Nation-State Total 39
Figure 8 Political Regimes 41
Figure 9 Wholesale Computer Sales 46
Figure 10 Prepackaged Software Sales 47
Figure 11 Computer Programming Sales 48
Figure 12 Interstate Starting Point 51
Figure 13 U.S. Interstate Freight Traffic 53
Figure 14 Total Transportation Outlays 54
Figure 15 Cellular Phone Subscribers .... 58
Figure 16 Internet Usage 59
Figure 17 Commercial Bank Assets 61
Figure 18 International Direct Investment 65
Figure 19 Clark Bridge 67
Figure 20 Invested Capital 70
Figure 21 Disinvested Capital 72
V
Figure 22 Major Landscapes 79
Figure 23 Run Down Building 84
Figure 24 Vacant Lot 84
Figure 25 Unused Space 85
Figure 26 More E. St. Louis 85
Figure 27 A Deserted Street 86
Figure 2 8 Specialty Shop 90
Figure 29 SE Birmingham Area 9 0
Figure 3 0 SE Birmingham Area 91
Figure 31 Office Building 91
Figure 32 Maryland Heights 92
Figure 33 Maryland Heights 92
Figure 3 4 Rural Landscape 94
Figure 35 Home Depot, St. Charles 98
Figure 36 Home Depot, Sunset Hills 98
Figure 37 Home Depot, Brentwood 99
Figure 38 Mercedes Plant (Visitors Center) 102
Figure 39 Mercedes Plant 102
Figure 40 Lacledes Landing 103
Figure 41 Lacledes Landing 104
Figure 42 Symptoms of Diminishing Returns 106
Figure 43 Decay On Display 108
chapter I
Introduction
Dan looked around, as far as you could see there were
these stacks and stacks of rubber for the machines. and
the worst thing with overtime was that you could never tell
when it would end. it could be from 2 to 5 hours, you
never knew, just time to get back to bed, lay down, then
get up again and begin feeding that rubber into the
machines, and it never ended, there was always more
rubber, more backorders, more machines. the whole building
was exploding, coming, pewking with rubber, mounds of
rubber rubber rubber and the 5 guys on the rotunda got
richer and richer and richer.
-Charles Bukowski, "The Stupid Christs"
Section One: Setting the Stage
A light fog playfully dances between the tree-covered
mountains, as a silky monochromatic diaphanous blanket of gray
fills the various hollows and passes, formed by countless years
of erosion. The sun hovers just above the horizon shedding a
warm glow on a line of ramshackle houses, while a train hauling
empty cars methodically slithers along a section of track toward
its inevitable encounter with a coal tipple. These cars will
soon be bursting with dark bituminous coal, soiled with the
blood and sweat of miners. People can be seen making their way
toward the mines, where by shifts end their aching bodies will
be smudged and layered in coal dust. The serenity of the scene
2
cloaks the reality of a destitute work force living in a
substandard economic environment of subsistence. A work force
employed and exploited by unscrupulous business and political
leaders because of its diverse cultural origins and unskilled
nature (Fagge 1996). These conditions led to one of the
bloodier events in labor history, where on May 19, 1920 in Mingo
County, West Virginia in the diminutive town of Matewan,
laborers and management (represented by the Baldwin-Felts
private detectives) clashed. The front page of the New York
Times (1920:1) described the event:
Twelve men were shot to death in a pitched battle on the
streets of Matewan, Mingo County, tonight between members
of a private detective agency and members of a newly
organized coal miners union. Of the dead, seven were
members of the Baldwin-Felts Detective Agency, of
Bluefield, W. Va.
The initial report of the New York Times overestimated the
number of fatalities. The St. Louis Post-Dispatch (1920:1)
provided a more accurate account on the number of people killed
when it read:
Following the killing of 10 men, seven of them private
detectives and the three others citizens of this little
coal mining village, last night in a revolver battle in the
streets here between the detectives and former employees
who have been "locked out" by the Stone Mountain Coal Co.,
quiet was being kept today by 100 Deputy Sheriffs armed
with rifles. Several detachments of the State constabulary
3
are on their way here . . .
Although this episode stands out compared to many other
regional acts of labor violence associated with wildcat strikes,
it eventually became lost as just another battle in a protracted
war that had gripped the state of West Virginia for some time.
A war whose theme is familiar in areas dominated by capitalism.
A war waged on economic principles as people struggle to survive
within the system.
We now shift to a present-day scene of capitalism, in East
St. Louis. Here, rows upon rows of dilapidated buildings, many
with boarded up or shattered windows, line the rubbish-speckled
streets. Abandoned cars sit in various locations while weeds
continue to overtake a vacant lot that is scattered with the
pieces of a collapsed building. A bedraggled individual
shuffles along the sidewalk, cradling a paper bag, oblivious to
his surroundings. Traffic hustles down an interstate slicing
through the poverty opting for a destination beyond. Sitting on
a set of tracks a freight train is stationary, waiting for
clearance to a legitimate center of commerce. Outside of town
sits a huge regional waste dimp that continues to pile up
(Figure 1). This is only a couple of miles removed (Figure 2)
from a state historic and world heritage site that is home to
4
Figure 1. One of the new garbage mounds outside East St. Louis.
Photo by James A. Sheehy.
Figure 2. Monks Mound on the Cahokia Mounds historic site
outside East. St. Louis. Photo by James A. Sheehy.
5
the remains of a formerly magnificent mound city built and
maintained by the Cahokia Indians from the late first century
A.D. till around 1300 A.D.
Back down the interstate a tarnished and tattered downtown
struggles as it desperately attempts to pull itself above its
current situation. Adjacent to the downtown, along the slowly
rolling waters of the muddy Mississippi, sits a gleaming casino
(Figure 3). Everyday, people from numerous locations come to
try their luck at blackjack, the slots, and other games, hoping
to win a couple extra dollars. Because of them, millions of
dollars are filtered through the casino's doors annually. This
has improved the overall situation by providing the city
government with tax dollars; unfortunately the casino has only
supplied a marginally positive influence for the rest of the
poverty stricken city of East St. Louis, Illinois.
Even though the current status of East St. Louis is
inadequate, some of the events of the past were not much better.
On July 2, 1917 a violent racial riot, facilitated by labor
struggles, created death tolls in the forties (Rudwick 1982).
The presence of a powerful political machine during much of
city's history produced an iitpoverished local government filled
with widespread corruption and ineptitude (Judd & Mendelson
1973). Accounts aroimd the time of the government's bankruptcy
6
Figure 3. Corne try your luck. Photo by James A. Sheehy.
7
and collapse in the early nineties were simply a continuation of
a downward spiral. By this time many people in the media had
started to take notice. A St. Louis Post-Dispatch (1991:11)
article states, "financial distress has often impaired police
and fire services." Another Dispatch (1992:1) article reporting
on the reemergence of garbage services noted that, "mounting
trash and debris over the years spread to vacant lots and added
to the city's unsightliness."
What do these two places divided by space and time have in
common? These and other areas exist as landscapes within the
regime of capital, and are advantageously or detrimentally
impacted by the flow of capital. They are evidence of uneven
development under capitalism, wherein capital is invested and
disinvested from not just infrastructure but also communities.
Hence, these social structures of economic interaction have
evolved in patchwork landscapes as corporations, businesses, and
individuals gravitate to the situations which best meet their
desires. As such they reveal the ability of capital to shape
space according to its needs.
These landscapes, run by the forces of capitalism, are by
no means static. They experience dynamic transformations of
their space as the levels of global capital directed at them
fluctuate. This means the dynamism created by uneven economic
8
development transforms the faces of landscapes over temporal
scales, which in turn compels societal inhabitants to adapt to
the changing environment. For example in the earlier half of
the 20*^ centu2ry both East St. Louis and Matewan could be
considered landscapes of mediocrity as a decent amount of
investment was maintained in each location. In both cases the
lure of jobs was able to cause inward migration. Now, though,
each place exists within a desert of capital because operations
have moved elsewhere in order to maintain profitability.
Because of this each landscape has seen a decrease in their
populations.
The result of all this spatial manipulation by the forces
of free enterprise is the application by society of landscape
values, which reflect spatial worth under capitalism. These
values are generated by the established societal use of
capitalist space and the consequent perception people attach to
that place. Furthermore, the relationship becomes a reciprocal
one, for negative landscape values can, for example, further
decrease a place's worth within the capitalist system. The
prescribed landscape value helps determine how society will
interact with space and as such guides the future vitality of
capitalist landscapes.
The underlying force responsible for this transformation of
9
landscape is capital. Over time capital has been flowing ever
faster through its circuits, inducing landscape change to occur
even faster (Hairvey 1989). Consequently, these established
landscapes need capital to continue running and thus are
affected by the generated perceptions and images people harbor.
This is because individuals are able to sever ties or bypass
landscapes easier than in the past. This is a result of the
processes, such as better communication and transportation,
causing the world to shrink and thus narrowing the space between
the global economy. Thrift (1995) alludes to this concept when
he relates how connected things have become under
"globalization". Harvey (1989) describes the intensification of
actions in his theory of "time-space compression," which
believes the world has become closer as it has advanced.
Section Two: Methodology
"I am one of those who is willing to try any means
necessary."
-Malcolm X
There are two major purposes of this paper. The first is
to describe six agents that have accelerated the pace of capital
flows. The second is to delineate eight different types of
landscape (six major and two minors), that have arisen as a
10
result of expedient capital flow within the free market system.
In order to accomplish these tasks the study will use the
qualitative techniques of observation, historical analysis, and
visual anthropology. It will also employ limited statistical
data in chapter two.
"Observation entail the systematic noting and recording of
events, behaviors, and artifacts (objects) in the social setting
chosen for study" (Marshall and Rossman 1995:79) . This form of
examination is time-consuming yet instructive, in that it
immerses the person doing the study in the actual environment.
Therefore, one is able to directly see and experience the
behaviors within a place. A negative aspect of observation is
that it is based upon the subjective notions of the viewer,
which may or may not be explicitly acknowledged.
"Historical analysis is ... a method of discovering, from
records and accounts, what happened in the past" (Marshall and
Rossman 1995:89). Using this approach is helpful to researchers
because it enables them to view into a past they were unaware or
absent from. This provides people doing the study with missing
pieces and gives a broader understanding. One possible problem
though is gathering data that is somehow tainted or inaccurate.
This is a result of not being able to be there and judge whether
information is accurate or not. This thesis uses literature and
newspaper articles as part of the historical analysis.
"Visual anthropology . . . relies on films and photographs
to capture the daily life of the group under study" (Marshall
and Rossman 1995:90). This method of investigation is effective
in that it provides a visual representation of the place for the
readers. It enables a person to actually see item instead of
having to imagine it. One possible drawback though is the
person taking the photographs is implementing their subjective
point of view. Also, it is difficult if not next to impossible
to completely document an item through film.
Quantitative data along with historical analysis and
observation will be used in order to prove the relevance of the
chosen facilitators of capital. The quantitative data will
encompass a facet or certain items emblematic of each agent.
For example, to show how people and capital are more connected
by communication data will be used that show the number of
cellular telephones owned in the United States. Quantitative
data, like the other methods of study, are susceptible to
subjectivity.
Obse2rvation, historical analysis, and visual anthropology
will be used to demonstrate the multifaceted landscapes existing
under capitalism. The landscapes introduced earlier in this
section are tactile in that they exist on the terrestrial
12
surface. People can go up and actually touch them because they
were built by and exist within society. Therefore, the various
qualitative observations mentioned before were chosen as the
methods to be incorporated in this part of the study, because
individuals through visual interaction and filtration generate
landscapes via mental images in their minds.
The author will accomplish the second major task by going
out into the environment and summarizing how multifaceted
landscapes fall ideally into the delineated landscape types.
The major places of study encompass the areas in and around St.
Louis, East St. Louis, Nashville, and Birmingham. The taking of
pictures with a camera will create a visual anthropology of some
of these landscapes. These photos will provide the reader with
a visual physical representation of the landscapes and thus
supplement the observation and historical analysis.
Section Three: Chapter Contents
The remainder of this thesis will be dedicated to the
analysis of capital flow and landscapes. The second chapter is
divided into three sections that are used to create an overview
and evaluation of capital. The first section reviews the
chronology and assorted definitions of capital by examining the
works of great economic thinkers such as Marx, Smith, Mill, and
13
Keynes. The end of this section delineates a modern capital.
Section two reviews the flow of contemporary capital through the
free market. In this section the idea of connectivity (passages
for interaction between places) is introduced. The final
section identifies and discusses six facilitators that have
increased the speed of capital over time.
Chapter three is concerned with illustrating the
multifaceted landscapes that result from contemporary capital.
The first section discusses how people's image and perception of
created place can determine the amount of interaction they have
with it. It relates how capitalism is a major determinant of a
landscape's identity. The second section reviews in depth the
characteristics of the resultant landscapes formed under
capital's influence. This also includes two sub-landscapes that
exist within the major ones. Section three covers some of the
processes that accompany structural decline in built landscapes.
The fourth and final chapter is concerned with closing
discussions. It reviews what has been covered in the preceding
chapters. Then it looks at the possible angles for approaching
this subject in the future.
14
Chapter II
Capital Flows
"Shed light on the darkness of greed."
-Rage Against the Machine, Darkness
The main purpose of this chapter is to give a general
overview of capital within the free market framework. The first
section relates how different economic figures have described
and defined capital in their various works of literature. It
will show how capital's definition have shifted from an entity
used in the purchase of commodities such as labor power, to the
complex of social relations that allow for the expense of social
value. Section two looks at the temporal transformation of
capital flow and its augmentation of uneven landscape
development. It reviews the continued growth in the speed of
capital flow through history, as the level of world connectivity
continues to increase. The final section outlines six agents
responsible for connecting the world and thus facilitating
quicker capital flow and uneven landscape development. The
workings, along with some of the contributions of each of these
will be discussed.
15
Section One: Defining Capital
During its short and influential hist02ry capital has
brought about radical transformations of society and the global
landscape. Over this span, starting roughly around 1675, the
system within which it exists has moved through merchant
capitalism, industrial capitalism. Fordism, and post-Fordism.
Capital's definitions have changed concurrently with each of
these alterations in the social framework of capitalism. Hence
its description has evolved from money into a multifaceted
entity that mirrors the complex social structure within which it
exists.
In 1776, an eccentric man of Scottish descent published a
huge work considered a landmark in the field of economics. It
provided society with a broad overview of how the capitalist
system operated. The man's name was Adam Smith and the book was
called The Wealth of Nations. Smith believed the expansion of
capital investment was positive because it spread economic
advantages to individuals as it transcended political boundaries
(Gill and Law 1988). Thus, he advocated a schism of the
political economy, where governments maintained a hands off
stance allowing business to operate freely. To him capitalism
was better than the mercantilist mode of operation outlined by
Thomas Hobbes (1994) in Leviathan. This was because
16
mercantilism blocked free flowing economic interaction by
concentrating on national power and autonomy (Gill and Law
1988). Under this system nations were only concerned with
deriving profits from other rivals.
As for capital itself, Smith (1976) described it as a means
to generate production of commodities. According to Smith
(1976) there were two major types of capital. These were called
"fixed capital" and "circulating capital". "Fixed capital" was
currency invested in the creation of structures, such as
factories and mines, for production. "Circulating capital" was
money invested in labor and resources for production of goods.
John Stuart Mill (1965:55) thought capital could be
acquired through saving, but said "money is no more synonymous
with capital than it is with wealth." Mill (1965) in his book
Principles of Political Economy (originally published in 1848) ,
believed, like Smith, that capital was the supplier of
necessities for labor involved in production. Thus, it could
take the form of people, land, resources, security, structures,
and machines. People in possession of these tools could utilize
them in production and effectively create more capital through
consumption. Mill (1965:65) points out though that "capital may
be temporarily unemployed," when industry's current situation
does not call for it.
17
Mill (1965) divides capital into the two main categories of
"fixed" and "circulating". These both parallel the delineations
of Adam Smith. The "circulating" variety of capital is only
used one time (e.g., the implementation of raw materials or
salaries paid to workers). "Fixed capital", on the other hand,
can be used repeatedly (e.g., a road, a mine, or a factory) .
John Maynard Keynes believed in the merger of politics and
economy. He thought the government should use its power to
monitor and direct economic trends. Keynes (1965), in A
Treatise on Money (originally published in 1930) delineated four
types of capital. The first three, which were categorized as
real, were "fixed capital" (goods that are being utilized) ,
"working capital" (involving goods in the process of
production), and "liquid capital" (goods in storage, that are
capable of use in the future). The last type was "loan
capital", which was claims on money advanced to other parties.
In other words, the rights certain parties have to loans given
out. For Keynes, these loans could be owed and lent by a single
person or an entire country.
In the mid 19*^ century a brooding revolutionary came along
who would write a massive work that critiqued capitalism. Karl
Marx (1952), in Das Kapital (originally published in 1867)
divided capital into constant and variable forms. "Constant
18
capital" was considered to be the instruments used in production
(e.g., raw materials and machines), that did not change in
value. "Variable capital" was thought of as the labor involved
in production, which changed because of different surplus
values. In other words workers added the amount of their labor
value and then added variable degrees of extra value.
Marx (1952) had an unfavorable image of capital and the
free market system. He viewed it as a cause for exploitation,
as opposed to Smith, who saw it as a source for global
facilitation of wealth. Marx's stance differed from earlier
writers because he believed the 'value', in commodities, was
added by workers. Therefore, for Marx, capital was the root of
inequality in society, because capitalists tried to derive extra
value by overworking laborers or attempted to acquire more
capital by prudently utilizing their available stock of money.
The entrepreneur fulfilled the role delineated by Marx through
the use of the basic circuit of capital :
M - C - M'
In this circuit, M stands for money (capital) , C stands for
commodities, and M' stands for money with a surplus value.
Therefore, money is exchanged for a commodity (e.g., a person's
value, silver, gold, livestock, wheat, etc.) and then exchanged
19
for more money. In this way leaders of business are able to
generate wealth, leaving the door open for further investment.
This creates a continuous cycle of investment and accumulation.
Thorstein Veblen (Heilbroner 1992), in his book The Theory
of Leisure, believed that because the aristocracy had
accumulated large amounts of capital it was able to flaunt
ostentatiously its position in society. This manner of display
is commonly practiced today when people with large sums of money
at their disposal choose to purchase the most expensive items,
no matter how gaudy the price or how awful the quality, in order
to show society how successful or glamorous they are. This is
to be expected within capitalism though, because the apex within
the free market framework is financial security and prosperity.
Hence, it becomes necessary to indicate to everyone else in the
system that one has arrived.
Neil Smith (1994:40) provides a dictionary type description
of contemporary capital, which encompasses a wide array of
different factors:
. . . capital is more accurately understood as 'expanding
social value.' Capital is a social relation rather than a
thing, and it can take various material forms; it can be
invested as money, consumed as raw material, expended as
wages for labour, operated as machinery and other means of
production, or sold as commodities.
20
An important part of this quote is the description of capital as
a social entity. It must follow social patterns of interaction
under the system of capitalism in order to move about.
Another recent definition is the existence of "human
capital," which comprises all aspects of people, including skill
and intelligence. Kooreman and Wunderink (1997:180) state,
"human capital consists of all those qualities of a person, such
as knowledge, health, skills and experience, that affect his or
her possibilities of earning current and future money income,
psychological income, and income in kind." Salamon (1991)
believes this "human capital" should be trained and instructed
to improve its overall quality.
David Harvey (1982) proposed the existence of "fictitious
capital," made up of miscellaneous forms of credit or
spreadsheet money, that could only exist in the silicon world of
computers. Today, this type of capital continues to grow as
lenders give out larger quantities of credit.
These different viewpoints show that even though all
capital is dependent upon the social structure of capitalism,
there is still a wide range of conjecture as to its intricacies.
In a positive sense, capital can be thought of as the basic
foundation or life giving force (water) for capitalism. It must
be at hand for capitalism to establish itself and remain for
21
continued evolution. Mintz and Schwartz (1990:220) observe
that, "unlike iron, coal, and machine tools, which are important
for some firms but not for others, capital is needed by all
corporations."
For the purposes of this paper, capital (Figure 4) will be
defined as the social value contained in each person, tract of
land, factory, commodity, amenity, piece of currency, etc.
Under these set limits even individuals who do not own property
or a business still have themselves as a source of capital,
because they are embedded within capitalism as a set of social
relations and thus have value. Therefore, its presence will be
ubiquitous across the whole population, instead of only being
wielded by few select executives, who head the arenas of
industry, finance, and land ownership. This capital (social
value), like any other, leads to the generation of economic
activity in the free enterprise system, meaning larger capital
availability equals increased activity. This available amount
of capital within a circumscribed area gives the overall
landscape value, which is the identified and perceived worth of
the existing structure within a landscape. These prescribed
values, of both the physical and social elements of a place,
affect the future inward and outward migration of capital. This
is due to these values molding people's perceptions and thus
Elements of Capital
Ç Currency ^
^ Government J Amenities ^
Ç Individuals J
Ç Manufacturing Plants ^
Figure 4. Various Elements of Capital.
23
their decisions on how much they will interact with a landscape.
The important thing to keep in mind is capital cannot exist
as a social relation outside of a given regime of accumulation.
Lipietz (1989:2) describes the regime of accumulation as the
"parallel development, over a long period, of the conditions of
production on the one hand and, on the other hand, the
conditions under which production is put to social use." Over
the last three centuries these social frameworks have changed as
capitalism has moved from one foima to another.
The first model, which was the precursor to capitalism, was
mercantilism. Under this system emphasis was placed on the
collective nation-state instead of the individual. Therefore,
mercantilism was concerned with a unification of political
economies. The main goal for countries was to acquire as much
power as possible at the expense of other nations. This was
done was through the acquisition of other places resources.
The next model to follow mercantilism was merchant
capitalism. This period is dominated by merchants who tried to
garner profits through the trade of commodities. They succeeded
in doing this by interjecting themselves between the producers
and the buyers. Here we start to see erosion in the juncture
between government and economics. Now emphasis is placed upon
the individuals who are attempting to make money for themselves.
24
The rise of industrial capitalism eventually supplanted
merchant capitalism. The main goal was still to accumulate
surplus capital, but the manner in which it was done was
different. During this time, entrepreneurs implemented
factories, which employed a large labor force to produce a
higher volume of goods. This allowed the entrepreneurs to
generate bigger profits by having more goods to sell to the free
market. Once again the government takes a back seat during this
period as a laissez-faire (hands off) attitude dominates.
During the early part of the 20** century Fordism replaced
industrial capitalism. This model utilized techniques of mass
production that divided up the production process into small
tasks. Thus, by increasing output entrepreneurs could expand
the market, jumpstart profits, and thereby increase laborers
wages. Along with this the other main cortponent was the
resurgence of the political economy. Under Fordism the
government is brought back to regulate commerce and ensure the
workers well being if hard times should arise.
From the ashes of Fordism arose post-Fordism. This period
has seen the creation of a global division of labor as
technological advances have destroyed distances. Now
competition to draw corporations has heightened as governments
are more willing to present a business friendly environment.
25
The incorporation of horizontal economies involved in
specialized production has also coincided with the schism of
market and place.
The next section will discuss and review how capital flows
have changed within this most recent regime of accumulation. In
other words, how does capital today move compared to its
antiquated cousin? Various descriptions will summarize how the
speed of capital is increasing over time, because of the
substantial amount of connectivity present in and between modern
free market cultures.
Section Two: Cuxxent Trends Within Capitalism
A major facet of capitalism is the uneven development of
place that occurs within its boundaries. As businesses choose
locations in society to operate they are at same time neglecting
other places. Therefore, these decisions made by companies have
the ability to transform landscapes in unequal patterns. This
has spawned a dialectic relationship where the greater
connectivity (caused by "time-space compression") of certain
places has coincided with the relative disconnection of others
(technological ghettos). This is enhanced under post-Fordism
because technological advances have given businesses the power
to expeditiously move capital, resources, and conduct affairs.
26
The remainder of the section addresses the major agent
responsible for uneven development: moving capital.
What has happened to capital flow over time? According to
Thrift (1995) increased "globalization" in the modern world,
through technological advancements in communication and
transportation, has allowed for the rapid movement of finances.
This is a direct contrast to the past where capital was tightly
linked to place, and thus limited in its ability to move. Back
during the merchant and industrial eras of capitalism it was
marked by its physical nature, where people stuffed money under
a mattress or industry utilized it for production. It is true
that capital still takes these forms, but now faster uninhibited
types also acconpany the traditional.
Grounded capital constrained the decisions capitalists
could make in regard to enhancing their profitable margins of
accumulation. They were unable to easily flee place, because it
was necessary for them to set up their operations around
established cities and areas of agglomeration that maintained a
network of supply and distribution routes. In these situations
labor had more leverage for negotiating better working
conditions, since capitalists could not flee. One response to
this was to install a strategy of place control, through the
implementation of the "company town". By instituting various
27
restraints the company maintained control over all or most
aspects of personal life. James Allen (1966) tells of such
lumber and mining operations run on these principles. In these
cases companies were able to get iinskilled workers to migrate to
the jobs. This greatly diminished the power of the laborers,
because the company could merely ship in unemployed unskilled
replacements if the current workers did not agree with the work
environment. This type of corporate domination over workers
lives was also prevalent in the early 20** century coal mining
towns of West Virginia such as Matewan (Fagge 1996). There,
unions were easily broken by minority labor shipped in from the
dying agriculture in the rural south (Trotter 1990). Zukin
(1991:7) described company towns as places where the companies,
"created a social regime that responded to industrial
capitalists' needs by housing a labor reserve and attaching
workers to their employers on a permanent basis." Inevitably,
in many of these places labor tried to counteract the
entrepreneur's advantage by forming unions. These had success,
especially under the fixed investment driven labor model of
Fordism, but have recently been on the decline as capital
mutated into its complex contemporary form. The following
paragraphs in this section will analyze traits of the post-
Fordist phenomenon.
28
John Maynard Keynes (1965) believed convenience and
sacrifice moved money. The important word in this phrase is
convenience, because this helps drive economic interaction.
Often people will not attempt to accomplish unnecessary tasks
when they are burdensome. If the nearest bank is two hundred
miles away and the only possibility for frequenting it is by
horse or wagon, less business will be conducted, because it is
not accommodating. On the other hand when accounts can be
handily processed in a matter of seconds, more people will
become involved because it fits the time constraints in their
schedules.
Therefore, convenience is a required agent for capital's
continued progress, because it creates an increased level of
connectivity between individuals involved in free enterprise.
Connectivity involves the development of passages between
people, which drive business collaboration by improved
feasibility. These interactions, which have grown in the
elaborate specialized post-Fordist economy, supply the market
with direction and aid in maintenance and growth. If there are
no economic bridges present between assorted masses of capital,
they will become dormant, adversely hindering the smooth
operation of commercialism. The chart (Figure 5) on the next
page shows the effects of connectivity.
Effects of Increased Connectivity
Figure 5. Chart on the Symptoms of Higher Connectivity.
30
Often, during recessions or depressions connectivity will
decrease as many people struggle for survival. In these
situations people have no expendable income since they are
unemployed or have a job and believe they should save their
money because of the current economic depravity. This in turn
causes entrepreneurs to incorporate a similar strategy of
hoarding. To stress the importance of connectivity, imagine a
businessperson putting a sizeable amount of money, people, and
resources into a capsule and blindly shooting it out into the
great void of space. This places the capital in a vacuum, where
it lacks vital connections and is therefore useless to its owner
and everybody else, because it's inactive.
Within post-Fordism capital has decreased the amount of
friction generated by movement, because it is less dependent on
place. The friction is still there it is just localized to
communities. Thrift (1995) relates how finances are moved
quickly through satellite communication networks, by a limited
number of individuals. Harvey (1989) describes through "time-
space compression" how the world continues to shrink through
technological evolution. In this system, the average person is
confused or illiterate about all the paper pushing going on
around them. David Harvey (1989) describes the modem global
financial system as, "so complicated that it surpasses most
31
people's linderstending." Entrepreneurs of today, who retain
large sums of capital have used this to their advantage. The
contemporary capital business leaders' hold has acquired
ethereal characteristics as its location permanency continues to
decline. It transcends boundaries of society with less
resistance as it floats through phone lines, cables, computers,
and over land and water. Thus, executives are afforded many
options in the running of their businesses, which were not
available before. The result has been the expanded exploitation
of global labor.
Because of existence of greater specialization and improved
connectivity, choices for location of business apparatuses are
no longer restricted to finite regions. The relationship
between market and place has weakened, as capital has become
less dependent on specific sites. Thus, there has been an
"annihilation of absolute place under the domination of capital"
(Harvey 1985:19) . The larger playing field means there is an
abundance of cheap labor that can lure companies. Now a
situation is furnished where companies can play cultures and
regions off against one another. Barff (1995), for exanple,
describes the creation of Export Processing Zones (EPZ) in
periphery countries of the global economy which provide breaks
on labor, land, power, taxes, pollution controls, and health
32
standards. Corporate movement to financially friendly regions,
like EPZ's, agrees with John Stuart Mill's (1965:688)
observation that, "low wages enable a country to undersell
another." Reinforcing the notion that, "you can't operate a
capitalistic system unless you are vulturistic" (Malcolm X,
cited in Perry 1991:276). For example, the area in and around
East St. Louis for much of its history supported various
industries that exploited the cheap labor supply of immigrant
and minority workers and paid minimal or no taxes to the local
government (Judd and Mendelson 1973). Unfortunately, when these
companies eventually left for better situations an impoverished
city government and population located in a job vacuum was all
that remained.
Because of capital flow's evolution, much has changed from
the past to the present; here is a contrast to show basic
differences. Imagine a tycoon during the "industrial
revolution" in England who desires to build a factory. Land is
at a premium, since there are only a few places where it is
economically feasible to locate a fact02ry, due to the
insufficient transportation and communication networks. Many of
these already have heavy agglomeration, which also stands in the
way. A cheap labor source (mostly women and children at the
time) for production is hard to find, because there are fewer
33
available pockets for exploitation. Then, when the factory is
finished and churning out products, logistical problems will
hamper their distribution and sale. Finally, the accumulation
of further wealth through market investment has limited
possibilities. Contemporary entrepreneur's can handily find
cheap land, which is conducive to factory placement thanks to a
highly linked global market. These connections spur a global
division of labor that can be taken advantage of because of
incongruent standards of living. The reason for this is the
presence of a "surplus of unemployed or underemployed farm
workers, desperate for work at any price" (Nossiter 1987:43) .
Today, highly organized distribution systems are in place at
many locations, for moving goods. Lastly, there are plenty of
ways to accumulate more wealth through prudent investment
ventures. Therefore, the first person is stuck behind a
mountain of barriers, which impede or preclude the ability to do
business in an efficient manner. The latter people can use the
assistance of a global economy along with technology to enhance
their capital usage.
Section Three: Facilitators of Capital Movement
Harvey (1982) does a thorough examination of contemporary
capitalism in his huge work The Limits of Capital. In it he
34
shows how modern capital flows through various circuits anchored
by the four areas of capital markets, production, consumption,
and the state. By analyzing his diagram, "circuits of capital"
(Harvey 1982), six major institutions have been identified as
essential to improving capital movement. They are: government
(which helps technology and social welfare); technology (which
provides innovations); transportation (which moves goods for
production and consumption) ; communication (which organizes the
system); financial institutions (provide capital for investments
and production); and multinational corporations (which create
development across political boundaries).
These six major actors of development (Figure 6) have been
identified as facilitators of accelerated capital flow, through
their ability to increase overall societal connectivity. All
six have developed within an infrastructure where they rely on
the others' existence. Since the development of a true free
market economy, which Heilbroner (1992:33) describes as "an
agony that began in the thirteenth century and had not run its
course until well into the nineteenth," all these factors have
experienced positive growth in the sense that they have
continued to evolve and develop becoming more influential within
the world economic scheme. Barring a global catastrophe (such
as a major war) or a major economic depression, each agent's
Facilitators
Figure 6. Facilitators of Quicker Moving Capital.
36
advancement should continue making capital more vigorous than
ever. Of course as history has taught us many times, the future
is never certain.
If people had decided to individually try to survive and
exist in the world, human existence would have never evolved
past widely scattered rudimentary tribal systems. It has been
necessary for people to come together as constructive organized
units in order to survive, progress, and overcome obstacles. As
Lowe and Moryadas (1975:2) state, "human beings organize
themselves in different forms in order to obtain a greater level
of satisfaction than would be possible if they operated as lone
individuals." In the past and the present, these organized
groups have provided such basic services as security from
outside forces and threats, a usable infrastructure, and
maintenance of internal law and order. Those fundamental
services have been the basis for widespread establishment and
maintenance of organized nation-states during human history.
Because of its importance to societal and cultural creation and
maintenance, the first facet considered instrumental in
accelerating capital flow is the institution of government. This
especially being true in nations, that implement the institution
of democracy, since capitalism coexists so well with it.
Many if not all of these governments created to run nation-
37
states have been self-serving bastions of cormption. Often
they have overrun the rights of other cultures and committed
genocidal acts on their own citizens. But for all their
imperfections governments have remained because they provide a
framework for the collaboration of united groups of people.
These governments, which have come in the form of despots,
monarchies, republics, fundamentalist regimes, communist states,
and democracies, supply their people with an identity. Some,
like the Roman Empire, have had their power, possessions, and
influence reach far and wide, while others, like Belize and
Gambia, have existed in relative obscurity and iitportance.
Heilbroner (1992:34) lists "the gradual emergence of
national political units in Europe," as a contributing agent in
the economic revolution. In Medieval Europe when the landscape
was dotted with feudal kingdoms it was hard for a merchant to
trade commodities or move capital since each little entity had
its own agenda, currency, etc., dictated by one individual.
Most people residing in these kingdoms and principalities had no
capital at their disposal anyway, because they were paupers or
slaves to the kingdom. This lack of a workable societal
infrastructure compounded by distances hampered efficient trade
and capital flow.
Eventually, the ability of civilizations to wield a more
38
centralized influence grew. This increased the longevity and
power of established governments, which has contributed to the
higher density of nation-states over time (Figure 7). It's true
that old time empires such as the one in Egypt had existed for
centuries, but their scope and continuous presence was limited
by primitive technology that could not subdue large distances.
Giddens (1990) commented that, "nation-states concentrated
administrative power far more effectively than traditional
states were able to do, and consequently even quite small states
could mobilize social and economic resources beyond those
available to pre-modem systems." As these more influential
states began to overtake the landscape they created standardized
organizations covering larger expanses of land. This smoothed
the process of trading and other economic activities because a
person no longer needed to assimilate a multitude of different
trade codes and cultural customs. The widespread establishment
of tariffs and other self-serving governmental blocks has only
been able to slightly deter this, since countries regularly need
to trade to survive.
In contemporary times, government congeniality has led to
the formation of economic coalitions. These allow for the
easier movement of goods and services over political boundaries,
diminishing the friction on capital even more. Some examples of
39
Total Nation States Over Time
250 1 —
200
150 L
c
o r
I 100 1 1
50
Pre AD- 1000- 1600- 1800- 1900- 1951- 1976-
1000 1599 1799 1899 1950 1975 1995
Period
Figure 7. Nation-state totals from pre A.D. to present. Source:
Derbyshire and Derbyshire 1996:7.
40
these organizations are the North American Free Trade Agreement
(NAFTA), Global Agreement on Tariffs and Trade (GATT), and the
European Community (EC). The growing number of democracies in
the global community has made much of this cooperation possible.
In the post cold war ear democracies comprise a majority of the
government globally (Figure 8) . It is t2rue that government
squabbles, which can inhibit capital flow, still exist today.
Fortunately, for capital, most of the current fighting is small
enough in scale to have only a minimal influence on the global
free market.
The second agent to be discussed and probably the most
important of the six is technology. For centuries individuals
along with civilizations have attempted to discover the secrets
of the unknown. These pursuits have helped emotionally and
physically bind society together. The reason is they give
society a goal to strive for while preventing it from falling
into a pit of stagnation and lethargy. Often these eurekas are
greeted warmly as they create easier solutions to common
problems, but this does not eliminate the presence of an
underlying skepticism.
Technology has sometimes attained a negative image and been
admonished by the media and the populace, becáuse of perceived
drawbacks. Many of these concerns revolve around the notion of
41
Political Regime of Global States
Figure 8. The political regime of global nation-states in 1995.
Source: Derbyshire and Derbyshire 1996:37.
42
placing power in the hands of morally corrupt individuals who
destroy the rights of people for their own greedy interest. For
example, the development and utilization of various types of
weapons for mass destruction has routinely been protested
against. Some of the possible implications of cloning are still
looked at with a wary eye. Certain authors' works of fiction,
along with some popular films, have portrayed a future corrupted
and horrifying because of so called advancement. In Kurt
Vonnegut's novel Cat's Cradle (1963) a substance called 'Ice 9'
is created, which gives the water it bonds with a high melting
point. It ends up freezing the world's water supply and
destroying civilization, when it is inadvertently dropped into
the ocean. In Phillip K. Dick's book Do Androids Dream of
Electric Sheep (Blade Runner) (1968) a depraved futuristic urban
wasteland of technology is depicted, where genetically created
life forms are causing grief for their makers, and therefore
must be exterminated. Although these kinds of visions are grim
and insidious, just imagine an existence where thoughts are not
debated, investigated, proposed, and developed. It would have a
striking resemblance to the Spanish Inquisition or any other
situation where religion and totalitarianism created an
oppressive atmosphere. Heilbroner (1992) believed the breaking
of religious constraints predominate in earlier cultures was one
43
way the 'economic revolution' was pushed forward. For
technology to grow further, it's imperative that the unimpeded
flow of ideas is allowed to continue.
Technology has the most affect on the other five areas and
thus has the largest affect on capital. It has improved the
ability to move commodities, products, goods, and capital
between locations and spread commerce into new markets.
Goldfield and Brownell (1979) described technology as the 'first
triumph' over logistical problems of trade in America between
east coast business centers and settlements to the west. Harvey
believed Marx had a narrow view of technology because he only
considered the labor process, ignoring its other applications.
As Harvey (1982:119) stated, "capitalist society has exhibited
an extraordinary degree of technological . . . dynamism
throughout its history." This dynamism has constantly pushed
society into new realms.
During human history seemingly concrete institutions have
been pushed out the door by new methods. Helped by the
invention of the steam engine, the creation of railroads in the
19'* Century shrank space and increased economic activity. When
compared to the antiquated canal and river system, railroads
provided a newer, quicker, and cheaper means of transporting
large amounts of freight. Once again society was transformed as
44
new settlement pattern along rail lines were started because as
George R. Taylor (1951:166) observed, "in the long run, the
river could not retain much traffic in competition with the
railroads." This form of infrastructure displacement is
emblematic of the entrance of fresh technological advances.
On December 17, 1903 along the wind swept beaches of Kitty
Hawk, North Carolina two brothers from Dayton, Ohio quietly
launched civilization into the sky with four short flights.
Although Orville and Wilbur Wright's invention was not fully
appreciated at the time it is now considered a landmark moment.
Our history is marked by the dates, such as the Wright Brother's
first flight, when great inventions first appeared. Some if not
most were initially viewed with skepticism before they were
fully appreciated. Eventually, though society wakes up and
realizes the potential of what they have. These epiphanies are
the most important agents within the technological structure,
because they promote change and prevent the onset of the
aforementioned stagnation. This in turn bestows a means for new
investment, which is critical to capitalism's continued
operation. Joseph Schumpeter (1934) believed that these
'innovations', as he called them, provided an impetus for a wave
of investment by entrepreneurs, facilitating another growth of
economic activity. The current expansive trends in core
45
satellite and support businesses involved with different facets
of the computer industry corroborate this belief. In the last
decade computer related industries have continued to make more
money (Figures 9 thru 11) .
Another way technology and its accompanying inventions has
furthered capital development is through periodic reorganization
of the capitalist structure and labor process models. One
example is the influence of mechanization. By putting powerful
tools in the hands of people, mechanization enabled individuals
of the 18^ century to produce an output of commodities and
products many times greater then their cottage industry
predecessors. Hence, society shifted from a low volume / high
quality structure to a high volume / low quality one. This
transformed skylines into a backdrop of factories and
smokestacks and provided the impetus for the 'industrial
revolution', which in turn laid the groundwork for the
capitalist system usurping power from the old established
landowners and giving it to the new bold entrepreneurs.
In 1911 F.W. Taylor published The Principles of Scientific
Management, which delineates a more productive method of
manufacturing where all of the pieces in the labor process are
broken down into small tasks (Harvey 1989:125). The combination
of these ideas along with mechanization, early in the 20'*
46
Total Wholesale Computer and Accessory Sales in the U.S.During the 1990's
18000000
16000000
14000000
12000000
C
s
o 10000000
Ê
® 8000000
as
CO
Z 6000000
4000000
2000000
0
4/1/90-3/31/91 4/1/91-3/31/92 4/1/92-3/31/93 4/1/93-3/31/94 4/1/94-3/31/95 4/1/95-3/31/96 4/1/96-3/31/97
Figure 9. Total wholesale computer and accessory sales in the
U.S. during the 1990's. Source: KMA Annual Statement Studies
for 1992:431 and 1997:494-495.
47
Sales of Prepackaged Software in the U.S. During the 1990‘s
8000000
7000000
f 6000000
m
3 5000000
O
b 4000000
<0
^ 3000000
CO
I 2000000
1000000
0
4/1/90- 4/1/91- 4/1/92- 4/1/93- 4/1/94- 4/1/95- 4/1/96-
3/31/91 3/31/92 3^1/93 3/31/94 2/31/95 331/96 3/31/97
Figure 10. Sales of prepackageci software in the U.S. (during the
1990's. Source: RMA Annual Statement Studies 1992:737 anc3
1997:908-909.
48
U.S. Computer Programming Sales in the U.S. During the 1990's
4/1/90- 4/1/91- 4/1/92- 4/1/93- 4/1/94- 4/1/95- 4/1/96-
3/31/91 3/31/92 3/31/93 3Q1/94 3/31/95 3/31/96 3/31/97
Figure 11. U.S. computer programming sales in the U.S. during
the 1990's. Source: RMA Annual Statement Studies 1992:645 and
1997:736-737.
49
Century, led to the creation of a new labor process model called
Fordism (Lipietz 1989). The first step to its dominance was
when Hen2:Y Ford incorporated production by the assembly line at
his plant in Dearborn, Michigan creating higher and cheaper
measures of output. Then, John Maynard Keynes proposed bigger
government involvement (via the formation of a safety net for
laborers) in guiding national economies, which became known as
'Keynesian Policy' and put all the pieces of Fordism in place.
The main goal of Fordism was to create more accumulation
for business leaders, while extending a larger share of profits
to workers, by forging a cycle of full production and
consumption. This was done by running industry at full
capacity, establishing the need for more labor and generating
goods the average person could afford. According to Lipietz
(1989:6) it "matched greater mass production with greater mass
consumption." After World War II this model maximized the
amount of capital interaction and transference that was possible
at the time. Eventually it would die in the United States as
profit margins evaporated when the market became saturated due
to over production. This caused heavy layoffs and corporate
restructuring in the U.S. during the 70's (Bluestone and
Harrison 1982). The new regime of accumulation to replace
Fordism was post-Fordism. According to Harvey (1989), post-
50
Fordism is composed of "flexible accumulation", as opposed to
the Fordism's rigid accumulation. Once again, technology has
generated a shift in the labor process model of capitalism.
Over human history, space has been constantly under assault
as the ability to get from one place to another has tremendously
improved. Formerly inconceivable projects as trains run by
superconductive forces are now being researched, tested, and
developed. In the United States, major legislation like the
Highway Act of 1956 (Figure 12) has created an elaborate
interstate system linking the contiguous forty-eight states. A
highly integrated network of airports covers the global
landscape, providing faster access to formerly remote areas.
These and other modes of transport have created a 'time-space
convergence' where the longevity of a trip between two places
decreases over time as the world becomes more connected (Janelle
1968). This describes how the third major factor,
transportation, has expedited capital movement and volume by
bringing the different corners of the world closer together.
According to Stubbs, Tyson, and Dalvi (1980:1), "transport is a
keystone of civilization. The spread of production, trade, and
ideas and the economic ascendancy of mankind all depend upon
movement. "
Transportation, which is composed of adaptations to human
51
Figure 12. For eveirything there must be a starting point.
Located outside St. Louis, Missouri along 1-70. Photo by James
A. Sheehy.
52
made and natural throughways on land, sea, and air, mesh the
global community together by maintaining vital economic and
personal links. A simple contrast shows how things have changed
over the years. Picture a merchant in Europe around the time of
the Renaissance that wants to venture outside his core region to
sell his goods in other markets. To do this he must find a
suitable way to transport himself and his merchandise. Two of
the better options are either take the available roads or to
sail aboard a wooden ship. Either choice will take a protracted
amount of time since many roads are inadequate and ships had not
advanced past wind-powered caravels or frigates employing
rudimentary forms of navigation. What this does is create a
problem of logistics limiting the merchant's number of practical
destinations because there are only a finite amount of places
that are accessible or have even been discovered. The full
potential for sales is hindered by a lack of pursuable customers
who reside in areas outside his effective range. Thus, the
speed and breadth at which our merchant can interact has
narrowed thereby stagnating potential capital flow.
Today's entrepreneur financially benefits from the
conquering of global distance. The amounts that are shipped
(Figure 13) as well as the quantity spent (Figure 14) on moving
goods and people continue to rise in the U.S., as well as the
53
ttiibed Stabes Icteaxdty Eteight '^'»PFir« (Ibn-Mlles) feon
1940-1996
Figure 13. United States intercity freight traffic (Ton-Miles)
from 1940-1996. Source: Moody's Transportation Manual
1997:a28-a29.
54
Ibkal Ttamfpat-.aticn Outls^s for Bsissoigea: and Fceight in
the U.S. frcm 1980-1995
Figure 14. Total transportation outlays for passenger and
freight in the U.S. from 1980-1995. Source: Statistical
Abstract of the United States 1997:617.
55
world. In advanced nation-states modern business leaders have
the option of shipping their products via jet-powered flight,
modern railroads, transports, superhighways, etc. This has
assisted capital in shattering many of the restraints because as
Lowe and Moryadas (1975:49) state, "cost distance has decreased
through time, especially in recent years." Much of the recently
developed playing field was brought in on the coat tails of
colonization and the age of discovery as economies of world
powers looked for veins of new wealth. The preliminary
transportation networks set in these places have become more
intricate and efficient over time as they attempt to catch up to
more established ones. Besides product transfer contemporary
transportation allows businesspersons to personally interact
with greater numbers of people in less time. This shrinks the
length of a trip leaving the door open for establishing contact
with even more individuals. These kinds of distance
minimization should continue in the future as remaining immature
transportation networks are improved.
Often, in our daily lives, it's painfully apparent that we
as individuals do not have all the answers to all the questions
out there. We would like to start a certain project needing to
be completed, but realize our strategy is wrong, we do not have
enough information, or need more resources. Luckily in this day
56
and age we have various proficient means of communication at our
disposal to help us get the job done. Nigel Thrift (1995)
alludes to the capacity of satellites to connect the comers of
the globe. It is communications, which coordinate groups of
people in free enterprise and assist the movement of capital.
John Stuart Mill (1965:594) stated, "commerce is the puir^ose of
the far greater part of communication which takes place between
civilized nations. Such communication has always been, and is
peculiarly in the present age, one of the prima2ry sources of
progress." Today this analogy could include not just civilized
nations, but individuals, small businesses, co2rporations,
conglomerates, and multinationals.
The world has come a long way from relating events and
ideas via primitive wall paintings. The modern age has provided
such improvements as the telephone and prior to that the
telegraph. Goldfield and Brownell (1979:337) state, "Alexander
Graham Bell's invention of the telephone in 1876 led to a
revolution in communications." This revolution, as well as
others, has enhanced the ability for greater communication
between people by eliminating most of the pitfalls of distance
involved with the sending and retrieval of information,
negotiating, coordinating, etc. The recent introduction of
computers and the use of satellites make it possible to hold a
57
Strategy meeting from different locations so supposition and
proposals can be discussed immediately. Cellular phones, which
have increased in usage (Figure 15), allow individuals in the
middle of nowhere to remain connected. The time stagger that
used to be present has dwindled as more of the world is
incorporated into the mass market. This has helped funnel
ideas, which generates the spark for partnerships, even faster.
Harvey (1985:15) looks cautiously at this type of compression,
because he thinks "the consequent victory of time over space and
place had its price. It meant acceptance of a way of life in
which speed and rush to overcome space was of the essence."
Communication has allowed people, who used to be excluded,
to become involved in the free market. It's plausible to be an
active participant in the stock exchange, even if you are not a
fat cat, because affordable services on the Internet allow
people to trade from anywhere. Transactions made at financial
institutions can be updated immediately, eliminating troublesome
delays. With the expanding Internet (Figure 16) a business or
any other money driven organization has the option of putting up
a web page and thus entering homes and offices around the world.
Barriers of distance and unfamiliarity will continue to be
smashed as the information age provides us with the knowledge
and capabilities to adapt. This sends capital into a whole new
58
OBlIialar TaLephcne SubscribeES in tibe U.S.,1989-1996
50000000
45000000
40000000
35000000
30000000
1—I
ij 25000000
o
^
20000000
15000000
10000000
5000000
0
1989 1990 1991 1992 1993 1994 1995 1996
Figure 15. Cellular telephone subscribers in the U.S., 1989-
1996. Source: Statistical Abstract of the United States
1997:569.
59
Hours of IhtemR»-. TKage Bes: Pecsoa (18 and dldar) Bar Year in tbe U.S.
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
est. est. est. est. est.
Figure 16. Hours of internet usage per person (18 and older)
per year in the U.S. Source: Statistical Abstract of the
United States 1997:565.
60
realm where its movement continues to increase.
In order to make money in the system of capitalism it takes
money. Unfortunately, the capital needed to turn a shrewd
conviction into an investment reality is not always at hand. In
these situations it becomes necessary to procure the needed
resources from a place that can provide them. By dispensing
monetary backing, in the form of loans, financial institutions
enable prospective entrepreneurs of every scale to implement
their visions. As these organizations grow larger they are able
to lend out more capital (Figure 17). Therefore, the fifth
component considered integral to increasing the speed of capital
is financial institutions. These entities create the desire and.
drive for more capital as they allow it to be moved around with
greater ease and into new markets.
Along with capital loans, investments are another sphere
where financial institutions create monetary transition. With
the assistance of technology banks, brokerage houses, etc., can
quickly process requests by clients and businesses providing
them with immediate information on their finances. Banks and
investment firms have hubs located around the world linked via
telecommunication satellites, which augments their ability to
trade with other financial institutions, creating a global
network where capital is allowed to funnel. The result is a
61
Total Assests of U^. Insiied Conrnerdal Banks from 1960-1995
Figure 17. Total assets of U.S. insured commercial banks from
1980-1995. Source: Statistical Abstract of the United States
1997:515.
62
growing dependency that further binds the world's individual
economies together. This is evident in how closely-knit today's
stock markets are becoming, where positive or negative economic
trends in one country or region can cause similar resulting
shock waves to occur elsewhere. This sort of closely tied
network could have dangerous ramifications though if a collapse
were ever to occur.
During the age of exploration and imperialism it was common
practice for stronger countries to colonize weaker foreign
lands. Once inside the discovered societies, "the colonial
powers took full control over the government of the dependent
societies within their empire" (Fieldhouse 1981:12). The belief
was these acquired pieces of real estate could serve the
homeland by enhancing it's power, wealth, and prestige. Spain
employed this type of domination strategy as they raped much of
Latin America's natural and human resources to boost their
national wealth and image (Keen 1991). These past methods of
colonialist expansion and exploitation resemble the aggressive
capitalist expansion and foreign direct investment techniques
utilized by today's multinational corporations, who try to
dominate large parcels of the global commercial marketplace, for
larger profit margins. Martin (1996:17) states, "large
companies are shifting from being geographically specific and
63
product diversified to being product specific and geographically
diversified." They are able to do this by sidestepping
"governmental restrictions based on old assumptions about
national economies and foreign policy" (Korten 1995:127).
Because of this, multinational corporations' economic irtportance
continues to grow. As Barff (1995) states:
During the last one hundred years, international investment
by coirporations has increased steadily to the extent that
the multinational corporation at the end of the twentieth
centuiry is one of the most important forces creating large-
scale shift in global economic activity.
After World War II multinational corporations experienced
huge growth when American business had the resources and
technology to expand into other democratic and conquered
nations. According to Bluestone and Harrison (1982:112):
The United States emerged from the Second World War with
the only major functioning army, with more than half of all
the usable productive capacity in the world, and as the
banker and creditor to both former allies and former
enemies. Such overwhelming economic and milita2q/
superiority had not been seen in the world since the turn
of the century . . .
Because of this, opposition to American power was virtually non-
existent since the rest of the capitalist world's infrastructure
was in a shambles. This coincided with the "establishment of
the dollar as the capitalist world's principal reserve currency
64
at the 1944 Bretton Woods Conference," creating an almost
universal money between these countries (Bluestone & Harrison
1982:113). David Harvey (1989:137) also alludes to this: " . .
. the Bretton Woods agreement of 1944 turned the dollar into the
world's reserve currency and tied the world's economic
development fÍ2rmly into US fiscal and monetary policy."
Since then other countries, such as Japan and Germany, have
gradually caught up with the assistance of the United States.
Programs, like the Marshall Plan, were implemented to help these
nations, because it was in America's best interest for them to
become capitalist democracies instead of communist. Many of
them now have multinational corporations of their own. With the
collapse of a majority of the Communist states most of the world
has entered into the free market system. This allows
established conglomerates, with enough leverage, to open local
branches of their business around the world on these large
tracts of economically uncultivated land. Coinciding with this
communist collapse, U.S. corporations have increased their
direct investment abroad (Figure 18). All these actions form
channels where capital, goods, and services can easily be
funneled through. Like the flags of the world, people of
different nationalities are now able to identify and tell you
what different corporate emblems stand for.
65
International Direct Investment by U.S. Parent Ckxnpanies, 1990-1995
1990 1991 1992 1993 1994 1995
Figure 18. International direct investment by U.S. parent
companies, 1990-1995. Source: Statistical Abstract of the
United States 1997:795.
66
The idea has been advanced that the six agents above
facilitate accelerated capital flow and compress the dimensions
of the world. The major symptom of "time-space compression",
being a world where everybody is closer together (Harvey 1989) .
The result of all this is the quickening of uneven landscape
development. The next chapter will analyze how societal space
has been altered through faster capital interactions. It will
describe the characteristics indicative of these resulting
diverse landscapes and the factors, which can undermine them.
67
Chapter III
The Liq[uldity of Landscape
"And the company takes what the company wants. "
-Midnight Oil, Blue Sky Mine
Figure 19. Clark Bridge in Alton, Illinois. Photo by James A.
Sheehy.
68
Section One: Introduction
Places serve as cohesive structures that people can operate
within, under capitalism and other regimes. These various
parcels of generated space develop physical and social
idiosyncrasies on the micro, meso, and macro levels that are
indicative or unique to each. When combined these
characteristics give places a signature, which sets one apart
from others. The people who reside, visit, or gather
information through media on these particular environments
record mental images and develop subjective perceptions that
they come to associate with each. These familiar ideas of
landscapes are carried with individuals so that they can be
shown a picture or have some physical and human characteristics
described and immediately identify it. Yi-Fu Tuan (1974:93)
describes societal relationships with place and landscapes
through 'Topophilia', which he states:
. . . is a neologism, useful in that it can be defined
broadly to include all of the human being's affective ties
with the material environment. These differ greatly in
intensity, subtlety, and mode of expression."
Therefore, landscapes presence plays an important role in the
workings of society.
Capital is the embodiment of money in commodities, items.
69
infrastructure, and social relations. We can think.of
landscapes as places wherein capital is invested (Figure 20) and
disinvested, and as places wherein the separation between social
classes is mediated. Landscapes under capitalism are part of
the "regime of accumulation" ; and they are the locations where
the individuals "place" within capitalism is experienced.
Hence, free market landscapes are run by capital, and thus
forced to adhere to its level of presence whether it's a surplus
or shortage. As Short (1996:97) states, "capital is ... a
creative/destructive force that, in its search for profit,
creates and recreates new landscapes, new division of labor, and
new social relations." Capital does this by gravitating to the
optimum situation and then remodeling that space existing there.
As such, landscapes under capitalism are dynamic in nature as
they differ across space (uneven development) and across time
(liquidity of landscape).
The problem today is capital moves with less friction than
before and can adapt to numerous environments, generating a
scenario where its decreasingly reliant upon and no longer
remains fixed at specific places. Lash and Urry (1987) believe
that because of the new 'disorganized capitalism' there has been
an inherent change in space from the rigid fixed accumulation of
Fordism to specialized post-Fordist variety. Because of this
70
Figure 20. Invested capital. Photo by Jennifer L. Knight.
71
flexibility, the capitalist model is able to develop at many
locations and leave, causing the destruction of a unified market
and place (Zukin 1991) . Now the sale and production of goods
and services can now be done from virtually anywhere.
Capital moves so freely now, that people and resources are
for the most part unable to keep up with the constant shifting
(Figure 21). If a company believes it to be economically
advantageous to establish operations at a location with a
business friendly environment or more agreeable resources, there
is not much a union or other interests can do to stop it. Major
corporate disinvestment in the later stages of this century left
East St. Louis bereft of quality jobs (Reardon 1997) . Zukin
(1991) describes how steel plants closing around the Midwest in
the late 70's and early 80's took away a major source of income
from communities. Gregory Pappas (1989) relates how high levels
of unemployment came to the union town of Barberton, Ohio
(outside of Akron) when most of the factories closed down in the
70's and early 80's. The restructuring of the American economy
during the late 70's and early 80's, via deindustrialization and
corporate mergers, resulted in numerous plant closings
(Bluestone and Harrison 1982).
Businesses are mostly concerned with money and profit
margins, making it easy for them to pull up and leave. But
72
Figure 21. Disinvested capital in the old factory sector of
Nashville, TN. Photo by James A. Sheehy.
73
people's emotional roots, economic status, and social support
networks, which can bind them to place, are often difficult if
not impossible to break. This large amount of control and
movement exhibited by capital leaves a patchwork signature of
various landscapes, upon the land. Harvey (1982:415) observed
that :
Capitalism does not develop upon a flat plain surface
endowed with ubiquitous raw materials and homogenous labor
supply with equal transport facility in all directions. It
is inserted, grows and spreads within a richly variegated
geographical environment which encompasses great diversity
in the munificence of nature and labor productivity.
As mentioned earlier, capital seeks out the most advantageous
situation for itself, causing an uneven and unequal development
within society. Through this, "capitalism creates a critical
frame of mind which, after having destroyed the moral authority
of so many other institutions, in the end turn against its own"
(Schumpeter 1950:143). Under these circumstances, capital is
constantly destroying older established orders as it remodels
place and space to its needs. In effect a "creative
destruction" of the societal framework occurs (Harvey 1989).
The area a landscape encompasses varies in shape and size.
This is because a landscape's characteristics and boundaries are
defined by societies' cognitive perception of their presented
74
reality. In other words, the manner in which capitalist
economies mold place, along with portrayal by miscellaneous
media, helps determine people's reactions and feelings about
place. For example, during the 20** Century it has been
important to the images of companies and cities to display
strength in building tall skyscrapers in central business
districts (Ford 1994). This has lead to the growth of
picturesque "skylines" which commonly identify cities and their
accompanying characteristics.
Of course, different individuals and groups will derive
qualities according to their own subjective viewpoints. However
this does not prevent the formation of a general consciousness
for a place. So although all these perceptions are not exactly
the same, they still give a general outline of the boundaries
and sense of a landscape. Therefore, landscapes can be as large
as a country or continent or as small as a city section or
neighborhood. They can encompass a very dense urban population
or a considerably sparse mral one. The landscapes may consist
of a hodge-podge of economic, social, and physical aspects or
just a couple. In the end though in developed free market
countries, it is capitalism's mannerisms that ultimately
deteinnine how the public feels about an area.
People often view the same thing differently. For example.
75
the color black has diverse characteristics and meanings in
American culture. To dress oneself in black can be construed by
others as projecting an image of coolness, while an individually
who is racially dark may be perceived as sketchy, ignorant, and
underhanded. Like most aspects of our daily lives image and
perception exert sizable degrees of influence. Jane Zaring
(1977) describes how Romantic artist and writers changed the
representation of Wales from negative to positive in the late
18** and early 19^* centuries by depicting the landscape as
picturesque. In order to achieve statehood, the Arizona
Territory published positive images and employed other methods
in the later part of the 19^ and early 20^ Century to boost the
population (Zube and Kennedy 1990) . The city of Syracuse did a
major restructuring of its appearance during the 1980's to
project a better image to outsiders (Short, Benton, Luce, and
Walton 1993). This type of influence is evident in the
relationship that exists between capital and landscapes. In the
commercial world, capital flows where traits are favorable to
the people possessing it. Conglomerates and individuals that
hold capital subjectively gravitate toward places and regions,
which maximize their personal desire for profits. Campbell
(1968:752) stated that as, "significant as view of self is the
way in which one views the world (environment) ."
76
The combination of built capital environments and their
corresponding subjective perceptions and images shapes landscape
values for place. These two mutually dependent aspects of
landscape values are important because they drive people's
reactions, which affects how their capital interacts or
segregates itself from place. Therefore, if a landscape's image
has negative connotations it will in turn have a substandard
landscape value with little capital interaction and vis-à-vis.
This follows along with Lowe and Moryadas (1975:133) view that
when people go through space, "the search process is not
entirely unconstrained, but rather there are certain
prejudgments made on the basis of preferences and prejudices."
An unfavorable image deters individuals from investing or
spending their capital in an area. The result is lower property
prices and a depressed standard of living. Of course with a
good location you might have an atmosphere conducive to
gentrification, because land developers have developed a
positive image of the situation. This type of scenario was
played out in the Docklands of London as massive amounts of
capital were invested, against huge resistance, in order to
regenerate the area (Bird 1992; Keith and Pile 1993). In the
United States nostalgic forms of gentrification have occurred in
as people search for things that are familiar (Ellin 1997).
77
Gentrification can improve a place's landscape value, but this
often displaces the current residents who are of a lower social
class.
In Mike Davis' (1990) the City of Quartz, we see how
capitalism's influence drives dynamism in landscapes over
temporal scales. Davis provides a prime example of how capital
changes place in his analysis of the transformations of Fontana,
California over the 20** Century. The original incarnation,
started by A.B. Miller, was an affluent built rural community of
lemon groves and chickens. It then mutated into a 'company
town' anchored around Henry J. Kaiser's polluting steel
operation. The final stage of reorganization in the post-
Fordist economy saw a depression in Fontana after the closure of
the plant in 1983.
Just like the complex world of capital landscapes are
continually shifting as they reorganize to each particular
situation. This is enhanced by the modem techniques and
abilities of the free market system, namely the capacity to
follow through on decisions at a higher rate of speed. Hence,
it only makes sense that as capital moves more promptly the rate
at which landscapes transform will increase. Therefore, a
simple relationship has fomed where global compression (GC)
plus increased capital fluidity (IGF) create accelerated
78
landscape change (ALC):
(GC + ICF) ^ ALC
The final addition to the relationship is the increase of human
migration (IHM):
(GC + ICF) ALC ^ IHM
Here, increased human migration (IHM) is the result of
accelerated landscape changes (ALC) spawning under capitalism.
The reason for this lies in the necessity of people to become
more transient as they adapt to the new global division of
labor. The next section will be devoted to defining the
characteristics of various types of landscapes existing within
this system.
Section Two: Major Landscapes
Six major types of landscapes (Figure 22) of societal
interaction within free enterprise are defined here. They range
from places of abandoned capitalist production to current
centers of commerce. The names for them are as follows;
deserts of capital, landscapes of mediocrity, hearths of
capital, areas of transition, green-field sites, and inert
Major Landscapes
Figure 22. Landscapes Within the Capitalist System.
80
landscapes. Also, two minor types are delineated, referred to
as aesthetic landscapes and landscapes of repetition.
Yi-Fu Tuan (1979) in his book Landscapes of Fear describes
the concept of peoples generation of negative perceptions of
place. They entail a general dislike or insecure feeling for
locations. The development of these types of abhorrent
attitudes can lead people to believe themselves to be in danger,
thereby triggering spatial avoidance. This is a characteristic
often displayed by outsiders in regard to landscapes, which
could be considered deserts of capital. The stereotyped belief
being that places with no money harbor insidious and desperate
elements. Of course, these negative perceptions are usually not
restricted solely to outsiders.
Deserts of capital are developed places that are
economically troubled due to the departure of former investing
interests. Many people living within capitalism are familiar
with this type of landscape even if they do not reside in it,
because if possible they will try to avoid it. Jargowsky
(1997:1), referring to impoverished space, says "most city
residents will go to great lengths to avoid living, working, or
even driving through these areas." This is especially true
among people commuting to and from work.
Regularly, individuals passing through deserts of capital
81
lock their doors in fear of the dangerous and desperate locals.
Presidents exploit these areas by frequenting them during
campaigns to give voters an impression of genuine concerns for
the poor, yet their interests are always temporary. The media
periodically shows up to describe the depravity of the
situation, but constructive action rarely ever accompanies them.
To people who actually inhabit one of these areas life can
be little more than mere subsistence. A major trait is a lack
of quality employment, meaning there is either rampant
unemployment or the jobs that are available pay around minimum
wage. Obviously, the root of this problem is a lack of major
expanding businesses within the area that can supply secure
long-term jobs. This is often the case when capital decides to
vacate an area. Mike Davis (1992:67) gives an example of one
such area in Southeast L.A. :
A detailed survey of local wages, for example, reveals that
96 percent of Vernon's 48,000 workers earn incomes so low
that they would qualify for piiblic housing assistance. At
least 58 percent of this largely unorganized work force
fall into the official "very low income" category.
This scenario is the result of plants and factories closing down
as economies decentralized, which created a change of social
classes from white to minority. Hence, Vemon and its
surrounding municipalities were turned into bastions of low wage
82
work. When this kind of scenario is emblematic of a region it
becomes necessary to travel longer distances for better jobs,
meaning a loss of time for the individuals who must do this.
With no quality employment in the area some if not all
characteristics regarding quality of life can be adversely
affected. Certain social amenities such as centers of
recreation and restaurants will not be available, since it is
impossible for the area to support them with the current
monetary base. Another possible component will be an inadequate
education system caused by poorly funded schools. This only
continues the cycle since superior businesses (unlike minimum
wage sweatshops) are less likely to locate where low skilled,
uneducated people and minorities are continually residing.
"Problem regions that no longer create highly skilled, highly
paid jobs" trouble Sharon Zukin (1991:14) because a cycle is
created where generations become locked in economic depravity.
The area will be bereft of skilled professionals (doctors,
lawyers, electricians) who can provide service, meaning once
again people must travel in order to fulfill needs. The
landscape may have a dilapidated infrastructure where roads,
water, sewage, etc. will be in desperate need of repair.
Community parks will be uninviting. Law enforcement, the fire
department, and other governmental services will be sub-par.
83
The reason for this is the lack of an effective tax base. It's
impossible to acquire funds from a population that is either
unemployed or must rely on the government for its income. This
threadbare infrastructure, along with the local unskilled
population, compounds the problem of bringing in fresh capital,
since it deters corporations and affluent individuals from
wanting to locate there.
East St. Louis, over the course of the 20** century, has
shown dynamism as it is been transformed into a desert of
capital. This is a result of a large outward migration of
capital stemming from the departure of major industrial and
transportation interests in the later half of this century. Now
East St. Louis is a landscape covered with structures of
abandoned development, activity used to take place (Figures 23
thru 27). E. St. Louis has recently improved its situation with
massive government subsidization, but it still has a long way to
go. Other current examples of deserts of capital are South
Central Los Angeles and older sections around Birmingham,
Alabama's decaying industrial belt.
In the modern world it's important for places to display a
positive 'image' to bring in money (Zukin 1995). Unfortunately,
the resources to do this are nowhere to be found in a desert of
capital. This leaves the option of procuring the government to
84
Figure 23. Run down building around the edge of E. St. Louis.
Photo by James A. Sheehy.
Figure 24. Vacant lot in E. St. Louis. Photo by James A.
Sheehy.
85
Figure 25. Unused space on the outskirts of E. St. Louis.
Photo by James A. Sheehy.
Figure 26. More E. St. Louis. Photo by James A. Sheehy.
86
Figure 27. A deserted street in E. St. Louis James A. Sheehy
87
throw stacks of money at the situation or developing a business
friendly environment. Jacobs (1992:49) thinks, "governments at
the national and local levels play a role in effecting changes
in policies that impart upon communities and economic growth and
they can modify the affects of market-induced influences." One
problem is that sometimes all this money cannot bring in
commercial businesses, which means the government must use up
more capital. Also, these methods can resemble the
transportation of water in a bucket with holes in it, because
corjTupt individuals within the system prevent money from
filtering down to the people who really need it. This has been
the case in East St. Louis (Judd and Mendelson 1973; Reardon
1997) .
The next definable area is the landscape of mediocrity. As
the name indicates, this is a location which is neither
advancing or receding in capital flow. The area is bereft of
new interjections of investment, but at the same time none of
the resident 'cash cows' have left. Under these circumstances
declining or vacant buildings and new stiructures can intermingle
in the same milieu. The population has not dramatically changed
for a period of time, due to the low amount of difference
between inward and outward migration. This does not imply that
the surroundings within the defined area have not experienced
88
modification or dynamism over time. It simply denotes the level
of alterations is miniscule in nature, yet balanced enough to
keep the overall landscape status level. Some of the possible
characteristics of these places are adequate employment, social
amenities, access to professionals, government services,
education, and infrastructure. Landscapes of mediocrity
resemble a stalemate in chess where the movement on one side is
countered by the other player's actions. This creates a
different look on the board, but ends up with the same results.
The next type of structure that a region can be defined as
is the hearth of capital. These are landscapes where there is
new and continuous capital investment and development. Within
one of these there is an abundance of monetary well being as a
result of the agglomeration of capital. There is typically a
healthy supply of jobs to be found, although it is possible for
the locale to be a residential haven (endave/exclave) for well
to do, where essentially there is only the presence of
accumulated capital. In this case, these people can make
investments abroad to create employment elsewhere. Usually,
though jobs will be available because of the presence of
reputable corporations. With them as a foundation, an impetus
is created where satellite businesses of the professional and
service industries are generated due to an affluent presence.
89
Hearths of capital have healthy infrastructures, which
provides quality roads and facilities. Because of the
substantial tax base, governments can provide more services to
the region to maintain its general well being. Quality
education is available for high school adolescents and older
individuals seeking bachelor and advanced degrees. More social
amenities for leisure activities are available, because of the
presence of expendable income. Professionals will have offices
that are easily accessible to locals because of their close
proximity and typically there will be more than one to choose
from, for hard to please individuals. These sorts of landscapes
can be found today on the outskirts of many major U.S. cities,
such as Nashville, St. Louis, and Birmingham (Figures 28 thru
33). They are the result of white flight, suburbanization, and
the decentralized post-Fordist economy.
The next area defined by the flow of capital is the
landscape of transition. These are places whose qualities are
reorganizing due to major additions or subtractions of capital
(e.g. a major corporation or a government interest pulling out
or coming in). An example would be the repercussions of a city
losing its major source of income through the closure of a
military base. The state of transition will encompass the time
from when the region learns of the iitpending closure and remain
90
Figure 28. Specialty shop around Brentwood, south of Nashville.
Photo by James A. Sheehy.
Figure 29. SE Birmingham area. Photo by Marc T. Smith
91
Figure 30. SE Birmingham area. Photo by Marc T. Smith.
Figure 31. Office building SE Birmingham area. Photo by James
A. Sheehy.
92
Figure 32. Maryland Heights area west of St. Louis. Photo by
James A. Sheehy.
Figure 33. Maryland Heights area west of St. Louis. Photo by
James A. Sheehy.
93
as long as the coitimunity infrastructure and businesses filter
out or adjust by attracting some other means of capital.
Eventually, the action will settle down as the area falls into a
state of inactivity or equilibrium. At this point, it is
possible to put the defined place into one of the stable
landscapes. Usually, landscapes of transition will experience
large amounts of negative and positive migration in the form of
people and capital, indicating either centripetal or centrifugal
movements to or from an area.
The next major landscapes are green-field sites, which are
places dominated by small-scale capitalist development and
agriculture (Figure 34). In other words, these are places (e.g.
the rural countryside) that do not contain major built economic
structures. Here the population will have a sparse density from
the existence of scattered towns, farms, and family homes.
Often these places are precursors to the more intensely built
varieties of landscapes. For example, contemporary suburban
sprawl on the perimeter of larger cities in the U.S. has
converted numerous green-field sites into more developed
capitalist landscapes.
The last areas to be delineated are inert landscapes, which
are places where capital development is prevented by
international agreements, the formation of national parks and
94
Figure 34. Picture of a rural landscape to the east of
Huntsville, Alabama. Photo by James A. Sheehy.
95
reserves, harsh natural conditions, or the presence of
pollution. Almost every square inch of the Earth's surface has
been explored in our modern age, where if humans did not place
their foot upon the land, satellites surely took a picture of
it. But even though we are knowledgeable of our planet it does
not prevent ample tracts of it from being productively
uninhabitable to capitalism. Large mountain ranges like the
Himalayas or the Andes prevent wide scale development, as do
harsh climates like Greenland or Antarctica. For all the serene
breath-taking visual beauty that exists at these locations wide
scale settlement is still not feasible or in some cases
permitted. Therefore, these places cannot be considered as one
of the active definitions of landscape. It is possible for
these remote locales to come into the fold of the free market
system, but it necessitates the manifestation of mineral wealth
that can support a primary economic operation or the influx of a
large sum of capital by a developer.
Srib-Landscapes
There are sections within a landscape, which are woven into
the fabric of an area's infrastructure, but are considered
pieces within the whole. The reason for this is they are an
economic use devised by various industries, to exist within a
96
larger framework. Lowe and Moryadas (1975:9) describe areas of
'economic space' where, "a certain economic activity or
activities prevail." The importance of them is they represent a
uniform entity existing in a plurality of locations that are
patronized and employ many individuals. Their origin can be
traced as a direct result of today's capitalist created big
business (such as McDonald's and Wal-Mart) that is continuously
t2rying to expand into new markets. The names of these siib-
landscapes are places of repetition and aesthetic landscapes.
Contemporary capitalism has slowly turned into a system run
by huge coirporations and conglomerates. This makes sense
though, because the system is run on competition, where it is
natural for the weaker elements to be assimilated or destroyed
by the stronger ones. Marx (1952) predicted that in the future
the failure of smaller corporation would be swept up leading to
the formation of larger companies. He believed, "centralization
completes the work of accumulation by putting individual
capitalists in a position to expand the scale of their
operations" (Marx 1952:310). Bluestone and Harrison (1982)
described the presence of expanding conglomeration in the 1970's
in the U.S. after the 'Pax Americana' when corporations
desperately tried to boost their market shares and profit
margins by snatching up smaller firms and then laying off some
97
of the newly acquired payroll.
The emergence of big business in the 20** Century has led us
in a direction of heavy trademark proliferation. Corporate
symbols now transcend the localized and international boundaries
as they set up shop wherever there is a good piece of land or
cheap labor. Chain stores comprised of trendy sit-down
restaurants, tire and battery shops, clothing boutiques,
bookstores, appliance and electronic outlets, and so on, dot the
landscape. This direction of 'bigger means better' has fueled
the formation of places of repetition. These are locations,
which because of their corporate ties, exhibit the same
characteristics as others. The result of which is a blurring of
our environment where it's difficult to tell exactly where you
are while at different places in the same country.
Places of repetition in the U.S. are often products of new
development placed on formerly unused land and located away from
the traditional decadent downtown of cities and closer to the
money holding middle-and upper-middle class of the sxiburbs and
exurbs (Figure 35 through 37). They have a centralization of
different businesses to give the consumer a variety of options
for shopping in one locale. This helps draw in more people by
use of their collective lure. Another characteristic is a
standard architectural style that is routinely employed.
98
Figure 35. Home Depot in the St. Charles area NW of St. Louis.
Photo by James A. Sheehy.
Figure 36. Home Depot in the Sunset Hills area SW of St. Louis
Photo by James A. Sheehy.
99
Figure 37. Home Depot in Brentwood area south of Nashville.
Photo by James A. Sheehy.
100
Ford (1994) described this style as the 'decorated shed'. This
helps keep production cost at a minimum for the companies and at
the same time symbolizes a place familiar to the customer. The
low cost though doesn't prevent the buildings from doing their
job, which is to reveal and instruct people (Tuan 1977).
Finally, these places have implemented a positive and secure
middle-class 'image' that tries to radiate an atmosphere
conducive for people to shop, because people are less likely to
venture to areas they identify as scary, sketchy, or dangerous.
In order to sell product in the free market, businesses
must attract customers. This requires the creation of an image
for places that consumers perceive as favorable for patronage.
The implementation of pleasing facades by sagacious consulting
firms has led to the evolution of aesthetic landscapes. These
are fictional places designed to (re)present comfortable
situations to allure consumers. This resembles Zukin's (1995)
elaboration of symbolic economies that use art and design to
(re)present entertaining and non-threatening aesthetics. If
successful, these developments can lead to large profit margins
for corporations.
The new Mercedes plant outside of Tuscaloosa, Alabama falls
into the aesthetic landscape category. This plant represents
another addition to the growing number of foreign auto plants in
101
the southern U.S. When all the lights are shining off its
gleaming facade at night it resembles a place of dreams more
than a place of assembly or industry. The area surrounding the
buildings is well groomed and inviting (Figure 38 and 39). An
architecturally post-modern visitor's center is available to the
public. This type of image boosting at the manufacturing level
presents a divide from the no nonsense past where the objective
was to simply get the product out the door.
Another type of aesthetic landscape has arisen in the last
two decades, where in many major U.S. cities programs have been
implemented to revitalize downtown areas, which are appealing to
the middle and upper classes. This has been done by creating
places that reflect better images and are able to dismiss past
negative perceptions of the city. Such cities as Nashville, St.
Louis (Figure 40 and 41), and Cleveland have taken on projects
that have refurbished previously decrepit blocks. Often, these
gentrified areas will have clubs, specialty shops, breweries,
restaurants, sports stadiums, and other social amenities all
located within a compact setting.
102
Figure 38. Visitors center at the Mercedes plant. Photo by
James A. Sheehy.
Figure 39. Mercedes plant. Photo by Marc T. Smith.
103
Figure 40. Lacledes Landing on the waterfront, St. Louis.
Photo by James A. Sheehy.
104
Figure 41. Lacledes Landing on the waterfront, St. Louis.
Photo by James A. Sheehy.
105
Section O^hree: Iftidexmining Landscapes
The great poet Percy Bysshe Shelley (1986:691) once wrote
in his work "Ozymandias" :
I met a traveller from an antique land,
Who said-"Two vast and trunkless legs of stone
Stand in the desart. . . . Near them, on the sand.
Half sunk a shattered visage lies, whose frown.
And wrinkled lip, and sneer of cold command.
Tell that its sculptor well those passions read
Which yet survive, stamped on these lifeless things.
The hand that mocked them, and the heart that fed.
And on the pedestal, these words appear:
My name is Ozymandias, King of Kings,
Look on my Works, ye Mighty, and despair!
Nothing beside remains. Ro\ind the decay
Of that colossal Wreck, boundless and bare
The lone and level sands stretch far away."
The decaying fictional edifices depicted in the poem above
resemble so many achievements of the real world, which have
subsequently lost their luster and value as they erode from
neglect. All the landscapes, described in the preceding
paragraphs, must fight similar mechanisms that are constantly
undermining the viability of the area. The forces of structural
decline (i.e. age and use) (Figure 42) eat away at the fabric of
capitalist landscapes much like termites masticate on wood. The
result of structural decline is the diminishing returns of
place, which when allowed to grow causes structures to lose
their cost-effectiveness.
Symptoms of Structural Decline
Figure 42. Symptoms of Diminishing Returns on Landscapes.
107
In society edifices, structures, neighborhoods, cities, and
other achievements are built testifying to the ingenuity and
determination of humanity, but even as the concrete is drying on
these developments, components of structural decline have set
in. As this happens, a place's capital worth to themselves and
the area in which they reside decreases, unless the structures
are routinely maintained and upgraded. In situations where
places become obsolete palimpsest landscapes form (Figure 43),
where buildings still show the mark of their former use, but are
no longer serviceable. Harvey (1982:419-420) elaborates that,
"the value of capital, once it is locked into immobile physical
and social infrastructure, has to be defended if it is not to be
devalued."
For example, lets say a brand new state of the art factory
has been put in a region that provides jobs, brings in capital,
and spurs buildup. The problem is over time this factory will
become antiquated and lose some of its capital value. This can
hurt the structure (area) it is part of, unless there is a
modernization or an introduction of fresh capital in some other
facet of the region counteracting the factory's decline. The
same rules apply for businesses geared for the service industry
or residential sections.
Now the argument could be raised that affluent area, which
108
Figure 43. Decay on display. Photo by James A. Sheehy
109
have rising land prices are iinmune to declining structures
because the monetary value is increasing. It is true that
because the costs are inflated by market demands (real estate)
it will lure individuals with abimdant capital, but even this
fixture cannot neutralize declining structures by merely being
there. A share of it must be applied or utilized at the source
to keep those values high or the system will fail. Hence, a
relationship has developed where capital must be expended in
order to keep a high level of capital. Therefore, a cycle of
re-investment caused by declining structures will occur once a
landscape has experienced initial development.
lio
Chapter IV
Conclusions
"I went through a lot of hell."
-Cesar Chavez
Capitalism has globally developed social landscapes from
which it can operate. Landscapes provide a framework for
society and capital to co-exist. These built social landscapes
characteristics are not unfluctuating, but experience dynamism
because they are the products of uneven development, where
capital flows to the situation which best addressed its needs.
Therefore people and place must constantly be ready to adapt to
economic shifts.
Today people are able to transfer capital faster than ever
before. This accelerated capital flow is due to the combination
of "time-space compression" (world is closer together) and the
agents of government, technology, transportation, financial
institutions, multinational coirporations, and communication,
which generate increased connectivity. The presence of this
faster capital facilitates an environment where social
landscapes can be transformed at increased rates. Therefore,
capitalist now have the ability to move operations to more
places. Because of this there is increased competition between
places to attract business and capital, allowing for greater
exploitation by capitalist. This has lead to the formation of
distinct landscapes.
Six major and two minor types of landscapes have resulted
from contemporary capital. The six major landscapes are deserts
of capital (developed land where capital has left), hearths of
capital (developed landscapes with a high level of capital),
landscapes of mediocrity (developed landscapes with average
capital), landscapes of transition (landscapes where a major
shift in capital is occurring), green-field sites (rural
landscapes with limited development), and inert landscapes
(unproductive land). The two minor types of landscapes are
landscapes of repetition (commercial places which resemble each
other) and aesthetic landscapes (places which present a specific
image which is favorable to society).
In order to defend invested capital developed landscapes
must fight the symptoms of structural decline. This is where
place is not maintained and thus loses its attractiveness. When
this happens a location's landscape value declines, creating an
environment less alluring to capital and society. Landscapes
values are the mutually dependent relationship of capital's
manipulation of place and the perceptions society has of place.
112
Future Approaches
In this paper pictures were taken of multifaceted
landscapes in order to portray their different characteristics
to the readers. Unfortunately, pictures of the exact same
places ten years earlier were not available. Therefore, one
effective way of improving on this type of study would be to
take pictures of the same landscape or place over an extended
period of time. By doing this, an investigator could create a
chronology where a distinct visual representation of dynamism
under of landscapes under capitalism can be seen.
Landscapes are not merely a group of built structures,
which exist in a vacuum. Individuals live and conduct other
social activities within a landscape and are an integral part to
the framework. Because of this, another approach that could be
taken in future studies would be to interview people on how they
feel about places and the social element who interact there.
This might give the researcher an idea of what people's general
subjective perceptions and opinions are of particular landscape.
This could be helpful, to the researcher, in determining why
some places are appealing or attractive while others are feared
or loathed.
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