Capitalism; Imperialism; Saving and investment; Socialism
Expanding reproduction is not a new discovery of capital. On the
contrary, it had been the rule since time immemorial in every form of
society that displayed economic and cultural progress. It is true, of
course, that simple reproduction as a mere continuous repetition of the
process of production on the same scale as before can be observed over
long periods of social history. In the ancient agrarian and communist
village communities, for instance, increase in population did not lead
to a gradual expansion of production, but rather to the new generation
being expelled and the subsequent founding of equally small and
self-sufficient colonies. The old small handicraft units of India and
China provide similar instances of a traditional repetition of
production in the same forms and on the same scale, handed down from
generation to generation. But simple reproduction is in all these cases
the source and unmistakable sign of a general economic and cultural
stagnation. No important forward step in production, no memorial of
civilisation, such as the great waterworks of the East, the pyramids of
Egypt, the military roads of Rome, the Arts and Sciences of Greece, or
the development of craftsmanship and towns in the Middle Ages would have
been possible without expanding reproduction; for the basis and also the
social incentive for a decisive advancement of civilisation lies solely
in the gradual expansion of production beyond immediate requirements,
and in a continual growth of the population itself as well as of its
demands.
Exchange in particular, which brought about a class society, and its
historical development into the capitalist form of economy, would have
been unthinkable without expanding reproduction. In a capitalist
society, moreover, expanding reproduction acquires certain
characteristics. As we have already mentioned, it becomes right away a
coercive law to the individual capitalist. Capitalist methods of
production do not exclude simple or even retrogressive reproduction;
indeed, this is responsible for the periodical phenomenon of crises
following phases, likewise periodical, of overstrained expansion of
reproduction in times of boom. But ignoring periodical fluctuations, the
general trend of reproduction is ever towards expansion. For the
individual capitalist, failure to keep abreast of this expansion means
quitting the competitive struggle, economic death.
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