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Means of production



 
 
Means of production (abbreviated MoP; ), include machines, tools, plant and equipment, infrastructure, and so on: "all those things with the aid of which man acts upon the subject of labor, and transforms it." (Institute of Economics of the Academy of Sciences of the U.S.S.R.
Russian Academy of Sciences

The Russian Academy of Sciences consists of the national academy of Russia and a network of scientific research institutes from across the Russian Federation as well as auxiliary scientific and social units like libraries, publishers and hospitals....
, 1957, p xiii). Subject of labor is the material worked on.

Means of production is sometimes confused with factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
. The term factors of production is typically understood as an explanation for income as duly paid to owners of each means of production and also to the workers themselves within capitalism
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
.






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Means of production (abbreviated MoP; ), include machines, tools, plant and equipment, infrastructure, and so on: "all those things with the aid of which man acts upon the subject of labor, and transforms it." (Institute of Economics of the Academy of Sciences of the U.S.S.R.
Russian Academy of Sciences

The Russian Academy of Sciences consists of the national academy of Russia and a network of scientific research institutes from across the Russian Federation as well as auxiliary scientific and social units like libraries, publishers and hospitals....
, 1957, p xiii). Subject of labor is the material worked on.

Means of production is sometimes confused with factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
. The term factors of production is typically understood as an explanation for income as duly paid to owners of each means of production and also to the workers themselves within capitalism
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
. By comparison, the term means of production applies to these means independent of their ownership and their compensation, and regardless of whether the mode of producing is capitalist, feudal
Feudalism

Feudalism, a term first used in the early modern period , in its most classic sense refers to a Middle Ages European political system composed of a set of reciprocal law and military obligations among the warrior nobility, revolving around the three key concepts of lords, vassals, and fiefs....
, slave, communal or otherwise.

This term has been more simply described as the resources and apparatus by which goods and services are created. In an agrarian society it is the soil and the shovel, in an industrial society, it is the mines and the factories.

Marxist analysis of ownership of MoP within capitalism

The analysis of people's relationships with the means of production is one element that stands at the basis of Marxism
Marxism

Marxism is the political philosophy and practice derived from the work of Karl Marx and Friedrich Engels. Marxism holds at its core a Marxist analysis of Critique of capitalism and a theory of social change....
. Marxists argue that those means of production participate in the process of exploiting labor for surplus value. To the question of why classes exist in human societies in the first place, Karl Marx
Karl Marx

Karl Heinrich Marx was a Germanphilosophy, political economy, historian, sociologist, humanism, political theorist and revolutionary credited as the founder of communism....
 offered an historical explanation that it was the cultural practice of Ownership of the Means of Production that gives rise to them. This explanation differs dramatically from other explanations based on "differences in ability" between individuals or on religious or political affiliations giving rise to castes. This explanation is consistent with the bulk of Marxist theory in which Politics and Religion are seen as mere outgrowths (superstructures) of the basic underlying economic reality of a people. To remain consistent with these principles, an explanation as to why classes exist in a society must derive from causes that are essentially economic in nature, and appeal to the alleged underlying reality of material production.

There are two subtle but important points to the Ownership of the Means of Production. The first being that owning the Means of Production is not the same thing as owning physical property, nor is it equal to owning money. Rather OMP refers to a cultural practice in which a few individuals within a larger corporation (or company) control and decide what is done with the entire profit created by that corporation. If one were to define the word "Corporation" as a particular kind of "group of people" then to later say that a few select individuals "own the corporation" then, by substitution, one must be saying that those select individuals own the group of people. In any case, this apparent paradox only arises when one confuses the owning of property with the owning of a corporation. When keeping these two kinds of ownership separate, the paradox of "owning people" evaporates.

The conclusion ultimately reached is that while the "owners" of a corporation only contribute a tiny fraction of the total labor and time in creating profit, they have complete control over that profit and how it is used. The practice of OMP in human societies is then a type of game where some people are labeled owners (Marx used the term, Bourgeoisie
Bourgeoisie

Bourgeoisie is a classification used in analyzing human societies to describe a social class of people. Historically, the bourgeoisie comes from the middle or merchant classes of the Middle Ages, whose status or power came from employment, education, and wealth, as distinguished from those whose power came from being born into an aristocrati...
) and other people are labeled workers (Marx used the term, Proletariat
Proletariat

The proletariat is a term used to identify a lower social class; a member of such a class is proletarian. Originally it was identified as those people who had no wealth other than their sons....
). The bourgeoisie have complete control over both how the proletariat are paid in wages and complete control over how the profit from production is used, thus giving rise to a class division.

Contrarian interpretations of this practice might state that wages paid to workers are subsumed under the regular costs of maintaining business. However, Marx considered it a reification
Reification (Marxism)

Reification is the consideration of an abstraction, relation or object as if it had human or living existence and abilities; at the same time it implies the thingification of social relations....
 to treat labor as just another "factor" in production; it implied an inversion of means and ends, so that people were effectively used as things.

Marx's terms are often employed in economic analysis by socialists
Socialism

Socialism refers to a broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods, and a society characterized by equality for all individuals, with a fair or Egalitarianism method of compensation....
 who advocate public ownership
Public ownership

Public ownership refers to government ownership of any asset, industry, or corporation at any level, national government, regional government or local government ; or, it may refer to common non-state ownership....
 of some or all of the means of production. The affinity between labor movement causes and this advocacy is very strong - and often shared by social democrats
Social democracy

Social democracy is a political philosophy of the left-wing politics or centre-left that emerged in the late 19th century from the socialism movement and continues to exert influence worldwide....
, socialists
Socialism

Socialism refers to a broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods, and a society characterized by equality for all individuals, with a fair or Egalitarianism method of compensation....
, communists
Communism

Communism is a socioeconomic structure and political ideology that promotes the establishment of an egalitarianism, classlessness, stateless society based on common ownership and control of the means of production and property in general....
 and greens. Marx's analysis in particular helped to make clear the key differences between capital and "labor". Marxists define economic system
Economic system

An economic system or ?conomic system is a system that involves the Economic production, distribution and consumption of Good and Service between the entities in a particular society....
s in terms of how the means of production are used, and which social class
Social class

Social class refers to the hierarchy distinctions between individuals or groups in societies or cultures. Usually most societies have some notion of social class , but concretely defined social classes are not found in every known type of human societies....
 controls them. Thus, in capitalism, the means of production are controlled by the bourgeoisie
Bourgeoisie

Bourgeoisie is a classification used in analyzing human societies to describe a social class of people. Historically, the bourgeoisie comes from the middle or merchant classes of the Middle Ages, whose status or power came from employment, education, and wealth, as distinguished from those whose power came from being born into an aristocrati...
, (the "capitalists" - the owners of capital). In the pure ideal of socialism
Socialism

Socialism refers to a broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods, and a society characterized by equality for all individuals, with a fair or Egalitarianism method of compensation....
, such as that "communism" was/is supposed to be, the MoP are controlled by the workers production collectives directly. In fact this situation has only been historically realized temporarily such as in the Israeli kibbutz
Kibbutz

A kibbutz is a Intentional community in Israel that was traditionally based on agriculture. The kibbutz is a form of communal living that combines socialism and Zionism....
 or the early Soviets before the entrenchment of the communist party as a "New Class
New class

The New Class is a term to describe the privileged ruling class of bureaucrats and Communist party functionaries which typically arises in a Stalinist communist state....
", or in isolated or preliminary form such as in the final phase of the Second Spanish Republic
Second Spanish Republic

The Second Spanish Republic was the system of government in Spain between April 14 1931, when King of Spain Alfonso XIII of Spain left the country following local and municipal elections in which republican candidates won the majority of votes in urban areas and April 1 1939, when the last of the Republican forces surrendered to Nationalist...
, or various experimental utopian communities.

See also

  • Clause IV
    Clause IV

    Clause IV of the United Kingdom Labour Party Rule Book 2007 sets out the aims and values of the party, and has been the subject of considerable political disputes regarding its application....
  • Information revolution
  • gross fixed capital formation
    Gross fixed capital formation

    Gross fixed capital formation is a macro-economics concept used in official national accounts such as the NIPAs and UNSNA since the 1930s. Statistically it measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped....
  • Mode of production
    Mode of production

    In the writings of Karl Marx and the Marxism theory of historical materialism, a mode of production is a specific combination of:*productive forces: these include human labour power and the means of production ....
  • Marxism
    Marxism

    Marxism is the political philosophy and practice derived from the work of Karl Marx and Friedrich Engels. Marxism holds at its core a Marxist analysis of Critique of capitalism and a theory of social change....
  • Productive forces
    Productive forces

    Productive forces, "productive powers" or "forces of production" [in German, Produktivkr?fte] is a central concept in Marxism and historical materialism....
  • property
    Property

    Property is any physical or virtual entity that is ownership by an individual or jointly by a group of individuals. An owner of property has the right to consumption, sell, Renting, mortgage, transfer and exchange his or her property....
  • Relations of production
    Relations of production

    Relations of production is a concept frequently used by Karl Marx in his theory of historical materialism and in Das Kapital. Beyond examining specific cases, Marx never defined the general concept exactly....
  • State Capitalism
    State capitalism

    State capitalism, for Marxism and heterodox economics is a way to describe a society wherein the productive forces are owned and run by the state in a capitalist way, even if such a state calls itself socialist....


Footnotes