Capitalism; Imperialism; Saving and investment; Socialism
So far, we have only considered circulation as it takes place between
the two large departments of production. Yet 4,000 units of the first
Department's produce remain there in the form of means of production to
renew its constant capital of 4,000_c_. Moreover 500 of the consumer
goods produced in Department II [corresponding to the surplus value
II(500_s_)] also remain in this department in the form of consumer goods
for the capitalist class. Since in both departments the mode of
production is capitalistic, that is unplanned, private production, each
department can distribute its own products--means of production in
Department I and consumer goods in Department II--amongst its own
capitalists only by way of commodity exchange, i.e. by a large number of
individual sale transactions between capitalists of the same department.
Therefore the capitalists of both departments must have a reserve of
money with which to perform these exchange transactions--to renew both
the means of production in Department I and the consumer goods for the
capitalist class in Department II. This part of circulation does not
present any features of specific interest, as it is merely simple
commodity circulation. Vendor and purchaser alike belong to the same
category of agents of production, and circulation is concerned only with
money and commodity changing hands within the same class and department.
All the same, the money needed for this circulation must from the outset
be in the hands of the capitalist class: it is part of their capital.
So far, the circulation of total social capital presents no
peculiarities, even if we consider the circulation of money. From the
very outset it is self-evident that society must possess a certain
quantity of money to make this circulation possible, and this for two
reasons: first, the general form of capitalist production is that of
commodity production which implies the circulation of money; secondly,
the circulation of capital is based upon the continuous alternation of
the three forms of capital: money capital, productive capital, and
commodity capital. And as it is this very money, finally, which operates
as capital--our diagram referring to capitalist production
exclusively--the capitalist class must have possession of this money,
as it has possession of every other form of capital; it throws it into
circulation in order to regain possession as soon as the process of
circulation has been completed.
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