#+title: circuit of capital
#+options: tex:t

- tags :: [[file:capitalism.org][capitalism]] [[file:20201111222005-capital.org][Capital]]

* Capital Vol. 1
The circuit of capital, as described in [[file:literature/20200611201816-capital.org][Capital Vol. 1]], reveals itself in two ways:

1. A laborer works to produce a commodity (C). This commodity is sold in
   exchange for money (M). Later, the laborer will spend that money on another
   commodity, thus creating the process C-M-C.
2. Alternatively, one could begin the process with money. This is how a
   capitalist may experience the process. Money is used to purchase commodities, which are in turn sold to make money. We call this M-C-M.

It would be ridiculous for a capitalist to not /make/ money on this transaction,
so the capitalists are able to perform a slight of hand, and the first M is
necessarily less than the second M, therefore we can say the process is really
M-C-M', where M' > M.
* Capital Vol. 2
In Capital Vol. 2 Marx greatly expands on what the circuit of capital is.

The general formula for the circulation of capital is:

$M-C...P...C'-M'$

These phases of the circuit of capital are:
- [[file:20201212163826-commodity_capital.org][commodity capital]] (C)
- [[file:20201212163902-money_capital.org][money capital]] (M)
- [[file:20201212163941-productive_capital.org][productive capital]] (P)