ECON 105 Chapter Notes - Chapter 16: Capital Accumulation, Labour Power, Marxist Feminism
21 Feb 2020
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Document Summary
The task of understanding the economy requires looking beyond surface appearances in order to discern the broader forces shaping its development. We need to see how the various parts of the economic system fit together and how they relate to the social and political institutions characteristic of capitalism. A marxian theory of the circuit of capital can be adapted for this purpose. Think of a young person setting up a small firm. This person would normally begin with capital in the form of money. That money can be used to rent business premises, buy raw materials, and hire labor. Production can then be undertaken, at which stage the capital takes the form of some as yet unsold commodities. If all goes well, those commodities can then be sold, thereby transforming the capital back into monetary form as sales revenue. If that final amount of capital is greater than the initial capital, the business has made a profit.
