📕 subnode [[@ryan/20210310164325 reinvestment_and_labor_market_are_unique_to_capitalism]] in 📚 node [[20210310164325-reinvestment_and_labor_market_are_unique_to_capitalism]]
📓 garden/ryan/20210310164325-reinvestment_and_labor_market_are_unique_to_capitalism.org by @ryan

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 [[file:20200716135507-free_labor.org][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 peasantsor slaves(although both were preserved under capitalism, each has largely been eliminated at least legally).

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