#+title: reinvestment and labor market are unique to capitalism
- tags :: [[file:capitalism.org][capitalism]] [[file:20200716124833-labor.org][labor]] [[file:20200716141042-valorization.org][valorization]] [[file:20200716142442-mode_of_production.org][mode of production]]
- source :: [[file:literature/20200611201816-capital.org][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. [[file:20210310164612-capitalists_do_not_horde_their_money.org][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 [[file:20200716135348-labor_power.org][labor-power]], or their capacity
to work. (see also: [[file:20210130181335-workers_only_have_their_labor_power_to_sell.org][workers only have their labor-power to sell]]) This is in
contrast to previous modes of production, where people were either [[file:20210310165131-peasantry.org][peasants]] or
[[file:20200716141014-slavery.org][slaves]] (although both were preserved under capitalism, each has largely been
eliminated at least legally).