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View Full Version : Accumulation of capital formula



Muzk
6th December 2009, 15:47
Can any of you explain this formula to me:

(c + v) + m/x + m'


m/x seems to be the old capitalized profit*, m' the newly gained profit

so, what's c and v?

hmm... could it be investment into new machines/repairing/technology?

And the money used to pay for labor?

*or not?

Muzk
6th December 2009, 15:56
I think I cracked it,

(c + v) + m/x + m'

c is "dead" capital, meaning machines etc, constante
v is a variable amount of capital paid to workers variable
(c+v) is the INVESTMENT
m/x is the old amount of capital, while m' is the newly gained capital (profit) through production of surplus value!

This is the process of reproduction! Hooray!

So, if you want growth through reproduction,

First you need to change your surplus value (commodities) into money, on the market
then you pay your workers(v)
then, what's left is yours to spend! Investing into m/x will make the capital grow(if you loan it to a bank, investment rates, or stock exchange), investing into v will make production(m') grow, same with c.

But why does Rosa say
40 c + 10 v + 10 m = 60 |1 reproduction phase

-> 44 c + 11 v + 11 m = 66