Bluffer’s Guide To Economics/ CAPITAL

Image037

Capital is the stock of tools available for production. The return to Capital is called Interest, this is the portion of the productive output retained by owners of capital, their share for allowing this capital to be used in production. Yet, capital, which can be produced, can therefore have it’s price reduced to it’s own reproduction cost. This means that Capital can not capture any more than it’s own reproduction cost. This means there can be no Capitalist class. Capitalism can not exist within a free market. For Capital to have a return above its own costs, the capitalists must drive its price up by withholding the means of production from labour. By way of introducing scarcity and thereby including Rent in the price, Capital farms profit. This is done largely by way of State granted exclusivity, such as patents and copyrights, banking charters, and other legel priviledge. Preventing new suppliers of Capital from existing is the means by which the Capitalist class is sustained.

Leave a Reply