Law of accumulation
Encyclopedia
Accumulation can refer to a cumulative or compound increase in a variable, or to capital accumulation
.
's critique of political economy, the law of accumulation refers to the way in which the accumulation of capital necessarily develops in the capitalist mode of production
.
The growth of capital proceeds via an increase in the organic composition of capital
and goes together with the proletarianization
of the population. More and more of the labor force consists of people dependent on a wage or salary for a living.
Marxian economists usually distinguish between the absolute and relative immiseration of the working class. In absolute immiseration, the living standards of the working class decline absolutely. In relative immiseration, the wealth of the capitalists grows faster than the real wages of the working class.
In Henryk Grossman
's theory, capital accumulation leads to a gradual decline of the rate of profit, culminating in a collapse of the capitalist system.
Capital accumulation
The accumulation of capital refers to the gathering or amassing of objects of value; the increase in wealth through concentration; or the creation of wealth. Capital is money or a financial asset invested for the purpose of making more money...
.
Marxian economics
In Karl MarxKarl Marx
Karl Heinrich Marx was a German philosopher, economist, sociologist, historian, journalist, and revolutionary socialist. His ideas played a significant role in the development of social science and the socialist political movement...
's critique of political economy, the law of accumulation refers to the way in which the accumulation of capital necessarily develops in the capitalist mode of production
Capitalist mode of production
In Marx's critique of political economy, the capitalist mode of production is the production system of capitalist societies, which began in Europe in the 16th century, grew rapidly in Western Europe from the end of the 18th century, and later extended to most of the world...
.
The growth of capital proceeds via an increase in the organic composition of capital
Organic composition of capital
The organic composition of capital is a concept created by Karl Marx in his critique of political economy and used in Marxian economics as a theoretical alternative to neo-classical concepts of factors of production, production functions, capital productivity and capital-output ratios. Marx first...
and goes together with the proletarianization
Proletarianization
Proletarianization is a concept in Marxism and Marxist sociology. It refers to the social process whereby people move from being either an employer, unemployed or self-employed, to being employed as wage labor by an employer...
of the population. More and more of the labor force consists of people dependent on a wage or salary for a living.
Marxian economists usually distinguish between the absolute and relative immiseration of the working class. In absolute immiseration, the living standards of the working class decline absolutely. In relative immiseration, the wealth of the capitalists grows faster than the real wages of the working class.
In Henryk Grossman
Henryk Grossman
Henryk Grossmanalternative spelling: Henryk Grossmann , was a Polish-German economist and historian of Jewish descent....
's theory, capital accumulation leads to a gradual decline of the rate of profit, culminating in a collapse of the capitalist system.