An internal contradiction is a contradiction within a system that threatens the system itself. That is to say, when the arguments you use to draw a conclusion are contradictory to the conclusion you draw.
Basically any argument in favour of capitalism will be riddled with internal contradictions. Let’s take a look at capital accumulation:
The idea for capital accumulation is that when wages fall (predominantly through more rigorous exploitation of the global south) then profit will climb. This, so far, is horribly true. However, capitalism demands growth to be considered success (stagnation of profits is considered failure, and even though basic physics tells us that continuous growth is literally impossible, that is, ultimately, the goal of capital accumulation).
In order for there to be continued growth, there needs to be continued consumption. And this is where the internal contradiction comes into play. In order to have maximized profits, wages had to fall. If wages have fallen, then who can afford to consume?
Enter: credit. Banks supply funds for consumption, consumption increases, wages continue to fall, the debt grows and no one can ever afford to pay anything back. The capitalists have lots of money but the money becomes worthless because the banks fail.
An internal contradiction is a contradiction within a system that threatens the system itself. That is to say, when the arguments you use to draw a conclusion are contradictory to the conclusion you draw.
Basically any argument in favour of capitalism will be riddled with internal contradictions. Let’s take a look at capital accumulation:
The idea for capital accumulation is that when wages fall (predominantly through more rigorous exploitation of the global south) then profit will climb. This, so far, is horribly true. However, capitalism demands growth to be considered success (stagnation of profits is considered failure, and even though basic physics tells us that continuous growth is literally impossible, that is, ultimately, the goal of capital accumulation).
In order for there to be continued growth, there needs to be continued consumption. And this is where the internal contradiction comes into play. In order to have maximized profits, wages had to fall. If wages have fallen, then who can afford to consume?
Enter: credit. Banks supply funds for consumption, consumption increases, wages continue to fall, the debt grows and no one can ever afford to pay anything back. The capitalists have lots of money but the money becomes worthless because the banks fail.
https://www.workers.org/2012/us/contradictions_in_capitalism_0223/ (for some more reading)