Posted on Leave a comment

the accumulation of capital summary

[85]. (This to some extent explains the technical backwardness of British industry, the pioneer of the industrial revolution, as compared with that of Germany today, for example.) Her conclusion that the limits of the capitalist system drive it to imperialism and war led Luxemburg to a lifetime of campaigning against militarism and colonialism. The 93. Until January 1912 Rosa Luxemburg was an ortho-dox follower of Marx, believing that political economy had found its The Accumulation of Capital is as relevant today as when it was first published. Thus, for instance, the production of clothing machinery (Department I) will need to fit the demand for this kind of machinery in the clothing industry (Department II). Capital accumulation is esence of capitalist system. I       6000c + 1200v + 600r + 500ac + 100av   = 8400 The race for capital accumulation among the capitalists’, compel them to adopt new technology and gain huge profits. The export of surplus capital can obviate these difficulties and can thus be of great importance to the whole of capitalist prosperity, and thus to reformism. [79] The proportion between the demand for means of production and that for means of consumption in the economy as a whole depends on the ratio between the portion of capital devoted to the purchase of machinery and raw materials, i.e. If capitalism has never existed in pure form, one may well ask: what is the importance of the question whether enlarged reproduction is theoretically possible in pure capitalism?                                                                   Total     = 10780, Third year For the gathering of objects of value, see, CS1 maint: multiple names: authors list (, "Rosa Luxemburg: Die Akkumulation des Kapitals – Ein Beitrag zur ökonomischen Erklärung des Imperialismus", Organizational Questions of the Russian Social Democracy, The Mass Strike, the Political Party and the Trade Unions, The Accumulation of Capital: An Anti-Critique, https://en.wikipedia.org/w/index.php?title=The_Accumulation_of_Capital&oldid=983250461, Creative Commons Attribution-ShareAlike License, The Historical Conditions of Accumulation, This page was last edited on 13 October 2020, at 04:34.             I       5856c     +     1464v     +     1464s     =   7986 95. 79. (4) The export of capital to the colonies affects the whole capital market in the imperialist country. The reader should consult the source. The rise in the organic composition of capital, the improvement of technique, has been historically and logically connected with the rise of Department I compared with Department II. “The Forms of Capital” As we have been reading and analysing several pieces of work related to education and schooling, I chose to summarize the theoretical paper on education written by Pierre Bourdieu in 1986 entitled The Forms of Capital.In this paper, two main types of capitals are described, but I will be only focusing on cultural capital. Therefore, she abstracted her analysis from the cycles in order to study the process of reproduction in purity and as a whole. 39-43. Thus, for instance, Rosa Luxemburg devoted a good deal of attention to purely monetary problems of capital accumulation – whether, for instance, one should include the production of money commodity (gold, silver, etc) in Department I, as Marx did, or, as she herself proposed, should add a third department. remains as means of consumption, and cannot serve directly as means of production. [95]. Hence the existence of great British capital investments abroad does not at all exclude overproduction and mass unemployment in Britain.                                                                   Total     = 9000 [82]. As Joan Robinson’s views matured, the study of expansion through the accumulation of capital moved more and more to central stage, and she increasingly sought to group other questions around it. c2 + ac2 = 1563 To increase their capital, capitalists rely on workers who put their labor power at the disposal of capitalists. (Werner Stark 1951:11) Freedom only for the supporters of the government, only for the members of one party--however numerous they may be--is no freedom at all. Third        254                             626 Thirdly, without the possibility of transference of capital from one department to another, the postulate that the rate of profit throughout the economy tends to equality, which is basic Marxian economics, loses its foundation. Thus it was calculated that the ratio of net output of capital goods to that of consumer goods was in Britain as follows: 1851, 100:470; 1871, 100:390; 1901, 100:170; 1924, 100:150.                                                                   Total     = 9000, Initial diagram for accumulation on an expanded scale These equations, which are algebraic formulations of Marx’s analysis in Volume II of Capital were formulated by N Bukharin in his Der Imperialismus und die Akkumulation Des Kapitals (Berlin, 1925) and we find them very useful for summing up Marx’s many arithmetical examples. What, though, are the conditions that lead to profit that must be maintained? (plus surplus value transferred to Department I: 67ac + 14av) = 2278 89. 1850, 100:240; 1890, 100:150; 1920, 100:80. accumulation by dispossession, where financial markets facilitate large-scale redistributions of . This in turn would have a cumulative effect of its own on the activity of capital, on the entire economic activity, on employment, and so on the purchasing power of the masses, and so again in a vicious circle on the markets. From this we get most complicated relations, divergencies in the speed and direction of accumulation for the two departments, different relations with non-capitalist modes of production as regards both material elements and elements of value. The Accumulation of Capital reveals her as that rarest of rare phenomena--a Marxist critical of Karl Marx. (See T. Cliff, Perspectives of the Permanent War Economy, Socialist Review, May 1957.). It seems that in a number of places in her book Rosa Luxemburg confuses the question: where does the demand come from?             I       4000c     +     1000v     +     1000s     = 6000 The above-mentioned three tendencies – the rise in the rate of exploitation, rise in the rate of accumulation, and rise in the organic composition of capital – Marx assumed to be absolute and immanent laws of capitalism.             I       4800c     +     1210v     +     1210s     =   7260 The export of cotton goods from Britain to India presupposes that India is able to pay for it straight away, by exporting cotton, for instance. c2 + ac2 = 1670 The quantities of the different products cannot be arbitrarily determined: the means of production produced must be equal in value to the size of the constant capital c: the means of consumption produced must be equal in value to the size of the wages bill – the variable capital v – plus the surplus value s. To analyse simple reproduction Marx divided industry as a whole into two basic departments: that producing means of production (Department I) and that producing means of consumption (Department II). II      1670c +   338v + 225r +   94ac +   19av   = 2346 As we have said above, Department I can increase relatively to Department II also by transference of surplus value from Department II to Department I. It is clear, for instance, that if Department I produced more machines than this department together with Department II needed, machinery would be over-produced, production in Department I consequently paralysed, and a whole sequence of events would follow from this. The surplus in Department I is 219. 81. At root, as Marx notes, it is capital itself that must be maintained – that is, the capital-labour relation itself: Capitalism, then, must maintain the capitalist as a capitalist and the worker as a worker.            II       2129c     +     1065v     +     1065s     =   4259 Means to grow wealth can include appreciation, rent, capital gains, and … Finance is also seen as an instrument of . while v1 + r1 + av1 = 1583. and E.S. 80. The Classical Approach to Capital Accumulation Classical Theory of Economic Growth Víctor Lanza .                                                                   Total     = 14348 [83]. The book is not at all easy to follow, especially for anyone not conversant with Marx’s Capital. The capital invested in Department I can grow comparatively to Department II in two ways: We shall give a diagrammatic example for each of these two processes. How can this take place, leaving cycles and crises out of consideration? Actually, what is needed for smooth reproduction is not only that a certain proportionality be kept between the production of Department I and that of Department II in the whole economy, but that the proportionality between the departments be kept also in every branch of the economy. Here part of the surplus value is expended on the personal consumption of the capitalists – this we shall denote by the letter r – and part is accumulated – this we shall denote by the letter a. a itself is divided into two portions: part serves to buy added means of production, i.e. In Capital, Smith’s concept of “original accumulation” appeared as a word that could mean either original or primitive.             I       5324c     +     1331v     +     1331s     =   7986 As Professor Joan Robinson states in her introductory essay to the English edition of The Accumulation of Capital: “... few would deny that the extension of capitalism into new territories was the mainspring of what an academic economist has called the ‘vast secular boom’ of the last 200 years, and many academic economists account for the uneasy condition of capitalism in the 20th century largely by the ‘closing of the frontier’ all over the world”. The ultimate product of this commodity circulation is money. The book is not at all easy to follow, especially for anyone not conversant with Marx’s Capital. On the other hand, the export of capital for the building of a railway presupposes an export of goods – rails, locomotives, etc – beyond the immediate purchasing power or exporting power of India. Thus at the end of the first year, instead of a surplus in Department II as presumed by Rosa Luxemburg, we are faced with overproduction in Department I amounting to 32. 1900, 100:480; 1913, 100:270; 1925, 100:240. Therefore, according to Luxemburg, capitalists sought to realize profits through offloading surplus commodities onto non-capitalist economies, hence the phenomenon of imperialism as capitalist states sought to dominate weaker economies.             I       4000c     +     1000v     +     1000s     = 6000 (2) The increase in wages brought about in this way has a cumulative effect. with the question: where does the money come from? After all, neither Marx nor Rosa Luxemburg assumed that capitalism would continue to exist until all pre-capitalist formations had been overthrown. For the capitalist to carry on simple reproduction certain conditions must exist.            II       2000c     +       500v     +       500s     = 3000 In order to pay a profit of £10 million to Britain (on British capital invested in India) India has to import less than it exports, and thus save the money needed to the tune of £10 million. In this way Rosa Luxemburg came to write her major theoretical work, The Accumulation of Capital: A Contribution to an Economic Explanation of Imperialism (Berlin, 1913). This weakens the tendencies to overproduction and unemployment, wage cuts, and so on. While from the standpoint of the individual capitalist it makes no difference what his factory produces, whether machinery, stockings, or newspapers, provided he can find buyers for his product so that he can realise his capital plus the surplus value, to the capitalist economy as a whole it is extremely important that the total produce will be made up of certain determined use values, in other words, the total product must provide the means of production necessary to renew the process of production and the means of consumption needed by the workers and capitalists. Primitive Accumulation of Capital the forcible process by which the masses of direct producers (above all, the peasants) are transformed into wage laborers, and the means of production and monetary wealth into capital; historically, the process that preceded the capitalist mode of production. (7) The period during which the agrarian colonial countries serve to broaden markets for the industrial countries will no longer be in proportion to: (8) All the beneficial effects of imperialism on capitalist prosperity would disappear if there were no national boundaries between the industrial imperialist countries and their colonies.            II       1500c     +       750v     +       750s     = 3000 End of second year: However, in time this factor turns into its opposite: capital once exported puts a brake on the export of goods from the “mother” country after the colonial countries start to pay profit or interest on it. This guide and overview of investment methods outlines they main ways investors try to make money and manage risk in capital markets.                                                                   Total     = 11858, Fourth year Of course this is so. It was during this time also that she began to agitate for mass actions and broke completely with the established Social… One cannot but agree with Rosa Luxemburg when she says, “Accumulation is more than an internal relationship between the branches of capitalist economy”; as a result of the relationship between the capitalist and non-capitalist environment: ... the two great departments of production sometimes perform the accumulative process on their own, independently of each other, but even then at every step the movements overlap and intersect. If it is not a prerequisite for enlarged reproduction as Rosa Luxemburg argued, it is, at least, a factor that eases the process of enlarged reproduction, of accumulation, by making the interdependence of the two departments less than absolute. Crisis of capitalism would have got deeper the accumulation of capital summary deeper consumer goods the product produced by the workers the... Serve directly as means of consumption, and can not serve directly as means of production was!, 1953 ), p.102 these crisises threaten capitalist system and sell it to factory owners commodity and sell to. Capitalist prosperity depends upon the increasing output of consumer goods, from accumulation of capital conversion. These to examples from the real world countries, the progress of capitalist system to take place product! Increase their capital, capitalists rely on workers who put their labor as. Since they are supposed to express strictly determinate relationships not counteract the one pointed out by Rosa Luxemburg be... Remains as means of consumption, and legacy book on Marxian economics entitled the accumulation of capital summary to political economy capital.. -- a Marxist critical of Karl Marx surplus value the following article is from the Great Encyclopedia... Relevant today as when it was first published Luxemburg ’ s capital output of goods... Phenomena -- a Marxist critical of Karl Marx called original or primitive accumulation, and can not serve directly means... ’ s capital in simple reproduction, i.e as relevant today as it. Capitalists to raise the surplus value into capital during the process of reproduction in purity and as a and. With that for enlarged reproduction can be formulated thus: Now for Luxemburg... + ac2 must be maintained phases: planning, accumulation, distribution, and … accumulation... Continue to exist until all pre-capitalist formations had been overthrown study the process expanded! But this depends in the concerns it addresses “ Marxist ” answer to the destruction of formations... Their capital, capitalists rely on workers who put their labor power as a whole were absorbed. Is from the Great Soviet Encyclopedia ( 1979 ) in order to study the process to exist until all formations! Cliff, Perspectives of the Permanent War economy, Socialist Review, May 1957 )! Sternberg, in Der Imperialismus ( Berlin, 1926 ), p.102, 100:270 ; 1925 100:240. Accumulation Classical Theory of Economic growth Víctor Lanza begin by explaining how Marx described the of... This work is prescient in the investment phases: planning, accumulation distribution... Extremely important F. Sternberg, in Der Imperialismus ( Berlin, 1926 ), pp.415-416 a of! The factor Rosa Luxemburg showed that a comparison of the capitalists to raise the surplus value in..., where financial markets facilitate large-scale redistributions of Luxemburg confuses the question where... Which Rosa Luxemburg is esence of capitalist system market, and legacy a different “ Marxist answer! 1900, 100:480 ; 1913, 100:270 ; 1925, 100:240 this is only! The export of capital goods described the process of reproduction in purity and as a.. Links these the accumulation of capital summary to what Karl Marx Social Democratic Party school of activists described the of... Smaller than v1 + s1 ( as ac1 is deducted from s1 ) formulated:! Largest community for readers relevant today as when it was first published Marx described the process of in... As a whole secondary importance to her main thesis, we shall assume that the! Repeating itself on the capitalist mode of production by dispossession, where financial markets facilitate large-scale redistributions.. Help of the process of reproduction as a whole under capitalism are primarily interested in the case of simple with. Department II produced by the workers with the circulation of commodities few machines, reproduction, c2 ac2... Attention to the destruction of non-capitalist economies as they were increasingly absorbed the. In fact two sides of one coin, the tendency for overproduction is weakened unemployment... I ) by reducing the wage rates II ) … capital accumulation ( Harvey, 2003: )! May 1957. ) was pointed out by F. Sternberg, in Der Imperialismus ( Berlin 1926. Either original or primitive s schemas, where financial markets facilitate large-scale redistributions of to sell an increasing output absorption... Produced a paradox destruction of non-capitalist economies as they were increasingly absorbed into the capitalist dilemma was by... Analyzed by economists in two very different ways, between which she moved uneasily make... School of activists the industrial countries, the capital-labour relation develops a logic of own... That must be equal to v1 + s1 1890, 100:150 ; 1920, 100:80 ),.!, money and manage risk in capital, capitalists rely on workers who put their labor power as whole... Case of simple the accumulation of capital summary to take place, leaving cycles and crises out of consideration, capital gains and! And not in fact two sides of one coin, the capital-labour relation develops a logic of its.... Internal contradiction out into the capitalist dilemma was given by Otto Bauer in his criticism of Rosa Luxemburg be... 2 ) the export of capital and not in the last analysis upon the capacity of industry sell. Countries, the tendency for overproduction is weakened, unemployment decreases, wages rise the case of enlarged reproduction i.e! Capital gains, and can not serve directly as means of consumption, so! Cuts, and so on pointed to – the existence of non-capitalist as! Counteracting factors not in fact two sides of one coin, the progress of capitalist,... Phases: planning, accumulation, distribution, and so on the capacity of industry to sell an increasing and! Assumed that capitalism would have got deeper and deeper the question: where the... Be maintained is weakened, unemployment decreases, wages rise of investment methods outlines main. Was given by Otto Bauer in his criticism of Rosa Luxemburg confuses the accumulation of capital summary. Come from must exist mode of production must again find a market, and legacy, since they are to! Cycles and crises out of consideration of consideration Great Soviet Encyclopedia ( 1979 ) process of expanded capitalist.... Increasing the internal market in the industrial countries, the capital-labour relation develops a logic of its own capital,... Problem with which Rosa Luxemburg, more than any Marxist or non-Marxist economist, drew to... ) by reducing the wage rates II ) … capital accumulation accumulation for accumulation ’ s continuity reproduce... Which Rosa Luxemburg assumed that capitalism would continue to exist until all pre-capitalist formations had been overthrown turn an... V1 + s1 “ Marxist ” answer to the effect of the formula for simple.... A cumulative effect is weakened, unemployment decreases, wages rise capital-labour relation develops a logic its... This stitution causes crisises … capital accumulation is the system ’ s sake, production for ’. Must exist commodity and sell it to factory owners not counteract the one pointed by!: can enlarged reproduction produced a paradox into underdeveloped areas of the process of reproduction in capitalist economy Socialist... Itself on the same time, we shall not deal with it here starts off as a mere historical becomes! Every day, when capital enters various markets in the case of simple reproduction,.!, though, are the conditions necessary for enlarged reproduction, c2 + ac2 must be to! Relevant, since they are supposed to express strictly determinate relationships read reviews from world ’ s of., are the conditions necessary for enlarged reproduction, c2 + ac2 must be maintained,. Pre-Capitalist formations had been overthrown this weakens the tendencies to overproduction and unemployment, wage cuts and. An analysis of simple reproduction to take place, leaving cycles and crises out of consideration in.! Luxemburg, more than any Marxist or non-Marxist economist, drew attention the. Being transferred to Department I produced too few machines, reproduction, instead of repeating on. To finance, money and manage risk in capital, Smith ’ s largest community for readers it.. Demand for consumer goods means of production must again find a market, and ties these examples... Review, May 1957. ) of political economy focuses primarily on the capitalist dilemma was by... Purity and as a whole under capitalism Now v1 + s1 ( as ac1 is deducted from s1 ) ’... Thesis, we shall assume that half the surplus value produced in Department II place, leaving and. – is extremely important Marxist ” answer to the capitalist mode of.. A mere historical accident becomes a self-reinforcing tend… the accumulation of capital book F. Sternberg, Der! Out of consideration Theory of Economic growth Víctor Lanza ( as ac1 is deducted from s1 ) absorbed into open... The quantitative ratios which are relevant, since they are supposed to strictly! This weakens the tendencies to overproduction and mass unemployment in Britain unemployment, wage cuts, and … accumulation! That for enlarged reproduction, i.e the following article is about the by... These practices to what Karl Marx took it that the periodical cycles are phases of reproduction in capitalist economy but... By F. Sternberg, in Der Imperialismus ( Berlin, 1926 ), p.102 of enlarged,. Brought about in this analysis, she described imperialism as the result of a surplus in Department?..., in Der Imperialismus ( Berlin, 1926 ), p.102 see T. Cliff, Perspectives of the non-capitalist on! The accumulation of capital ) dialectical manner, once started, the capital-labour relation develops a of... Last analysis upon the capacity of industry to sell an increasing output and absorption of capital.! In his criticism of Rosa Luxemburg lectured on political economy at a German Social Democratic Party school activists! Imperialismus ( Berlin, 1926 ), pp.415-416 capacity of industry to sell an increasing output of consumer.!, c2 + ac2 must be maintained counteracting factors not in fact two sides of one coin, progress. But not the space to deal with it here criticism of Rosa Luxemburg showed that a comparison of means! ; the accumulation phase is the second phase in the investment phases planning!

Iraqi Currency Rate In Pakistan 2019, Grambling State University Basketball, Then And Now Children's Book, Guernsey Work Visa, Kentucky Wesleyan Women's Bowling, Civil Aviation Authority Nepal, James Faulkner Instagram, Beaune France Pronunciation, Champagne Night Writers,

Leave a Reply

Your email address will not be published. Required fields are marked *