Die Neue Zeit
24th June 2011, 15:37
http://www.revleft.com/vb/economics-major-definition-t156830/index.html
Just how many definitions of "capital," Marxist or otherwise, are there? :confused:
Classical economics:
In classical economics, capital is one of three factors of production, the others being land and labour. Goods with the following features are capital:
It can be used in the production of other goods (this is what makes it a factor of production).
It is human-made, in contrast to "land," which refers to naturally occurring resources such as geographical locations and minerals.
It is not used up immediately in the process of production, unlike raw materials or intermediate goods.
Capital in "economics" should strictly be any of proprietary, partnership, or shareholder equity.
Finance:
The problem is that finance blurs this to also include long-term debt, most notably in discussions on Weighted Average Cost of Capital.
Financial reporting:
Then, there are long-term assets to consider as well. When considering other subject areas, this is understandable, because there are financial instruments that are equity in form but long-term debt in substance (like certain kinds of preferred shares) and classified according to the latter, and vice versa.
[Re. long-term assets: because of things like goodwill and other intangible assets, there is a move away from using "capital assets" in business parlance and towards "property, plant, and equipment."]
Finally, there the various forms of capital encountered in Marx's works. M-C-M' and M-C...P...C-M' are not the same as "the means of production" (constant capital) are not the same as "dead labour, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks" (again, I'm sure this quote isn't referring to money in action).
Just how many definitions of "capital," Marxist or otherwise, are there? :confused:
Classical economics:
In classical economics, capital is one of three factors of production, the others being land and labour. Goods with the following features are capital:
It can be used in the production of other goods (this is what makes it a factor of production).
It is human-made, in contrast to "land," which refers to naturally occurring resources such as geographical locations and minerals.
It is not used up immediately in the process of production, unlike raw materials or intermediate goods.
Capital in "economics" should strictly be any of proprietary, partnership, or shareholder equity.
Finance:
The problem is that finance blurs this to also include long-term debt, most notably in discussions on Weighted Average Cost of Capital.
Financial reporting:
Then, there are long-term assets to consider as well. When considering other subject areas, this is understandable, because there are financial instruments that are equity in form but long-term debt in substance (like certain kinds of preferred shares) and classified according to the latter, and vice versa.
[Re. long-term assets: because of things like goodwill and other intangible assets, there is a move away from using "capital assets" in business parlance and towards "property, plant, and equipment."]
Finally, there the various forms of capital encountered in Marx's works. M-C-M' and M-C...P...C-M' are not the same as "the means of production" (constant capital) are not the same as "dead labour, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks" (again, I'm sure this quote isn't referring to money in action).