Katana VentraIP

Capital accumulation

Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form of profit, rent, interest, royalties or capital gains. The aim of capital accumulation is to create new fixed and working capitals, broaden and modernize the existing ones, grow the material basis of social-cultural activities, as well as constituting the necessary resource for reserve and insurance.[1] The process of capital accumulation forms the basis of capitalism, and is one of the defining characteristics of a capitalist economic system.[2][3]

"Accumulation of capital" redirects here. For the book by Rosa Luxemburg, see The Accumulation of Capital.

A addition to existing wealth

net

A redistribution of wealth.

The initial investment of capital (which could be ) in means of production and labor power.

borrowed capital

The command over and its appropriation.

surplus labour

The (increase in value) of capital through production of new outputs.

valorisation

The appropriation of the new output produced by employees, containing the added value.

The realisation of surplus-value through output sales.

The appropriation of realised surplus-value as (profit) income after deduction of costs.

The reinvestment of profit income in production.

Markets with social influence[edit]

Product recommendations and information about past purchases have been shown to influence consumers choices significantly whether it is for music, movie, book, technological, and other type of products. Social influence often induces a rich-get-richer phenomenon (Matthew effect) where popular products tend to become even more popular.[11]

Growth, Accumulation, Crisis: With New Macroeconomic Data for Sweden 1800-2000 by Rodney Edvinsson