Late-stage capitalism affects different aspects of our lives. From the things we buy and own, our work lives, and the advertisements we see. Some even predict that in the post-industrial age, robots and artificial intelligence will play a big role. Late-stage capitalism is a phrase that combines the wide wealth gap, perceived absurdities, and the evolution of commercialization.
It’s a complex topic involving many consumers, corporations and governments. While this can be a gloomy and polarizing topic, this article will provide an overview of late-stage capitalism, its history, and share optimistic tips on what consumers can do about it.
What is late-stage capitalism?
The term “late-stage capitalism” has gained traction. It symbolizes how frustrated people feel about inequalities, the shrinking middle class, and the growth of powerful companies.
In Canada, late-stage capitalism refers to the economic system and the conflict between companies focused on profit and everyday people trying to meet their basic human needs (as in Maslow’s Hierarchy of Needs). It’s a critical phrase that highlights the inequities of modern-day capital markets.
What’s the history of late-stage capitalism?
In her article in The Atlantic, Annie Lowrey notes that people believe it began with Karl Marx. However, it wasn’t Marx’s term. Instead, Marxist thinkers invented it to illustrate the industrialized economies that they saw. Late capitalism was an economic period from the end of World War II until the early 1970s. During this time, international companies expanded, and there was concern that automation and stagnant wages could leave workers unhappy.
The term originated with the German economist Werner Sombart at the turn of the 20th century. Later, in the 1970’s, Belgian Marxist economist Ernest Mandel wrote about it in his book, Late Capitalism. Furthermore, Frederic Jameson of Duke University introduced the popular phrase to a wider audience of theorists and academics.
There are similarities with the Gilded Age (1870s to early 1900s). During this period, the United States experienced fast economic growth and industrialization, accumulating significant wealth. Railroads were expanding, and workers moved to industrial cities for work. However, there was extreme poverty among the working class, while a small group were very rich. There were even labour strikes to fight for better working conditions and wages.
The 2008-09 financial crisis highlighted the wealth inequality. Events like Occupy Wall Street took place. Also, the housing market collapse triggered a banking crisis in the United States and led to massive bailouts worldwide.
Why does late-stage capitalism happen?
First, let’s revisit the basic concept of capitalism. It’s an economic system in which private individuals or companies own the tools, resources, and means of production used to produce goods and services. In a capitalist economy, supply and demand influence the prices, the quantity of goods produced, and how resources are allocated.
Late-stage capitalism arises from how the free market works. In a free market, buyers and sellers are free to trade without government intervention. As such, private companies are incentivized to maximize their profits, cut costs, and limit wage increases. Gradually, this leads to monopolies and mergers, large wealth gaps, and commercialization. Wealthy companies spend money to lobby governments to reduce regulations or cut taxes.
Everyday essentials such as bottled water, basic shelter, or healthcare have become costly or luxuries. Or the absurdity of people resorting to crowdfunding to cover medical expenses while companies are publishing all-time high profits. So, some perceive this as corporations profiting from basic human needs.
What are the key indicators of late-stage capitalism?
On social media, Gen Z and Millennials talk about the gap in inequality and corporate-driven indignities they see in everyday life. It’s felt in wealth disparity and in the increasing reliance on borrowing to pay for necessities. Or people doing gig work who lack financial benefits and employee wages that aren’t keeping up with inflation.
Capitalism neglects environmental impacts, including climate change and pollution. In the near term, businesses can manufacture goods at lower cost and achieve wider distribution. However, it can deplete our world’s natural resources. Consumer culture and overconsumption play a big role in buying non-essential goods that end up in landfills.
What current events show late-stage capitalism?
In Canada, housing has been commodified to accumulate wealth rather than serving the public good. Moreover, 1 in 4 people in Canada live with food insecurity. 19% of people who use food banks are employed. This shows how challenging it is for Canadians to afford daily living expenses.
Another example is the gig economy. As Canadians rely on gig work (such as rideshare drivers or food couriers) to earn extra income, corporations are classifying workers as independent contractors to avoid paying minimum wage, benefits, and overtime pay. These workers don’t have access to Employment Insurance (EI) and the Canada Pension Plan (CPP). However, Ontario and British Columbia have amended employment laws to protect these workers.
About public policy, the Canadian government passed the One Canadian Economy Bill (Bill C-5) on June 26, 2025, to help strengthen our political economy. The Bill was designed to remove trade barriers between our provinces. In politics, given the recent trade war between the United States and Canada, this Bill can help fast-track major infrastructure projects (such as mines, energy grids, and pipelines) within our country. However, some critics may see this as involving late-stage capitalism. That’s because it’s seen as a move to prioritize corporate profitability that affects the environment and Indigenous rights
How to navigate late-stage capitalism
There is hope, and we can take steps in our daily lives to improve our society and well-being. Here are some helpful tips on handling late-stage capitalism:
- Don’t let financial paralysis take over your life. Educate yourself by reading financial resources.
- Focus on social capital by joining communities and local support groups.
- Reevaluate what wealth means to you. Learn what truly brings you joy.
- Understand the marketing tactics that companies use to entice you to spend your money.
- Reduce the temptation to buy non-essential goods.
- Become a financial activist. Start by making ethical decisions when buying products or services.
- Join the Buy Nothing challenge to help reduce waste and encourage a circular economy.
- Cut overconsumption or retail therapy to cope with stress.
- Create a sinking fund for anticipated costs through your savings account. Property taxes, car repairs, and vacations are common examples.
- Pay attention to drip pricing used by companies, such as for concert tickets and cell phone plans.
With prices of everyday goods rising and wages not keeping up, it’s easy to fall into debt. If you need help managing your debt load, our team of experts can provide you with a free consultation.
