# reinvestment and labor market are unique to capitalism

tags
: [[capitalism]] [[labor]] [[valorization]] [[mode of production]]

source
: [[Capital Vol. 1]] and other places

What makes capitalism unique is its ability to make money out of money, and the existence of the labor market.


## Reinvestment, or valorization of capital

Capitalism is able to make money out of money. It does this through a process of reinvestment. [[Capitalists do not horde their money]], but instead reinvest it back into business, thereby expanding the economy and their personal wealth.


## Labor market

Capitalism liberated peasants from the country side only to make them [[free laborers]], who have nothing to sell but their own [[labor-power]], or their capacity to work. (see also: [[workers only have their labor-power to sell]]) This is in contrast to previous modes of production, where people were either [[peasants]] or [[slaves]] (although both were preserved under capitalism, each has largely been eliminated at least legally).