Capital – The Physical or Financial Resources required for Production

Capital refers to the physical or financial resources used to produce value in an economy. These resources may be invested in tangible assets such as land, factories, or businesses, or in intangible assets such as intellectual property or technological innovations.

Capital is one of the three factors of production, along with labour and land. It is essential for the financing of the means of production and is therefore a critical element in the generation of wealth and expanding economic activity. In addition to its role in production, capital is also a key factor in financing and economic growth.

A well-functioning economy requires a strong capital base to support growth and provide the resources necessary to finance new businesses, invest in research and development, and respond to unexpected events.

Karl Marx believed that capital was the driving force of history and that economic systems were based on the relationships between different classes of people, which were determined by their ownership of capital.

Contemporary anthropologists have noted that capital has become increasingly important in shaping social, political, and economic life around the world.

The term “capital” is also used in other contexts, such as social capital or human capital.

Social capital refers to the networks of relationships between people, which can provide advantages in terms of access to information, jobs, and other resources.

Human capital refers to the skills and knowledge that people possess, which can be used to generate economic value.

The concept of capital is a central part of economic theory and has been the subject of much debate among economists.

Related Terms:

Bourgeoisie – The class of people who own the means of production in a capitalist economy.

Working Class – The class of people who do not own the means of production and must sell their labor power to survive.

Proletariat – A term used by Karl Marx to describe the working class.

Means of Production – The tools, machines, and other physical resources used to produce goods and services.

Labour Power – The ability of workers to perform labour, which is sold to capitalists in exchange for a wage.

Commodity – A good or service that is produced for exchange on the market.

Value – The worth of a commodity, determined by the labour required to produce it.

Surplus Value – The portion of the value of a commodity that is over and above the amount needed to cover the costs of production.

Profit – The difference between the price of a commodity and the cost of producing it.

Capitalist Mode of Production – An economic system in which the means of production are privately owned and used to generate profits.

Socialism – A political and economic system in which the means of production are owned by the community as a whole.

Communism – A classless society in which the means of production are owned by the community as a whole and there is no private property.

Glossary Terms starting with C

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