πŸ““ reinvestment-and-labor-market-are-unique-to-capitalism.md by @ryan β˜†

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).