Law of Capital Accumulation by Karl Marx

in #economics6 years ago

According to Marx, it is the surplus value that creates capital accumulation. Capitalist choose the method of increasing the productivity of labor to maximize profit. in order to make improvement of labor the capitalist save the surplus value. They reinvest it to acquire a large scale of capital and thus capital accumulation. To Marx's concern "Accumulate, accumulate it, that is Moses and the Prophet."
Evil Effects
a. Large scale of production is controlled by few persons.
b. There is concentration of rural population in towns that increase ploratariate.
c. As a result of capital accumulation, decline trend in profits.
d. The development of join stocks companies and banking and credit facilities fasten the growth of concentration of capital.
e. Over production and under consumption.