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GS English: Competition of capitalists – Chapter II: Accumulation of capital: Expansion of production and commerce

Von • Jul 4th, 2020 • Kategorie: International

GS English (July 2020):


Competition of capitalists

Chapter II

Accumulation of capital: Expansion of production and commerce


§ 7 Growth


1. Growth: The capitalist’s natural need, dictated by his source of revenue 2. The turnover of capital: The necessary requirement for additional capital as well as the source of it; Profit is reinvested, thereby guaranteeing income 3. This means more work, for the industrialist as well; The profession of ‘executive officer’

Additional remarks: The wage worker and his working time


§ 8 Expansion of the market


1. Trusting in buyers’ ability to pay, and competing for it 2. How the merchant class serves the business of industrialists, and the price of this service: A new front in the competition for sales and market price 3. Liquidity for a growing market: Replacing money by money tokens; Bank (deposit) money 4. How the need for more work is served in a cost-saving way


§ 9 State tasks

– Within its borders

1. Capitalists’ demand that society serve their needs for growth: An agenda for the public power 2. The first service of the bourgeois lawgiver: equipping the money interests of citizens with the necessary quantity of proper force according to their class position 3. First requirements for the national budget: The country and its people must be tailored to capitalists’ drive for growth 4. State money with a fixed exchange rate, for the liquidity requirements of money dealing; The first necessity for a national treasury 5. Ensuring sufficient state funds while sparing capital and its growth (1): The tax system

– Beyond its borders

1. Contracts between force monopolists for capital growth beyond national borders 2. Government revenue from the commercial success of foreign capitalists: Tariffs

3. How states settle cross-border trade between each other, and the second function of the national treasury 4. Subjecting the globe to the necessities of growth: Imperialism & colonialism


§ 10 Loan capital

1. Lever for growth by separating the expansion of production from the turnover of capital 2. The equation ‘capital = credit’: The two-sided business with debt 3. Pitfalls of the cooperation between industrial capital and bank capital 4. The means of circulation: From money tokens to credit tokens


§ 11 The state as creator of a national credit money

– Within its borders


1. How the lawgiver recognizes and controls the use of debt as money and capital 2. The state as “bank of banks” with a “banknote monopoly”:

Guarantor of doing private business with debt, and autonomous credit creator 3. Inflation (1):

Necessary collateral damage from credit-financed growth 4. Ensuring state funds (2): State credit-tokens with the quality of money as the source of government debt capacity; Inflation (2)


– Beyond its borders


1. Foreign trade on the basis of credit monies created autonomously by states 2. The central bank ensures convertibility of currencies 3. The state’s purpose for cross-border trade: Mass and quality of national credit money


§ 12 The dogma of growth as the good purpose of all economic activity, and the solution to all the problems it creates


– 1. “Growth” in popular thinking


1. Growth is great, since it provides more of everything you need 2. So it’s good if money works too … 3. … but bad when there is inflation, which is the government’s fault


– 2. “Growth” in academic thinking


1. Business administration does its own calculations to show how a company is supposed to calculate — while growing 2. Economists rave about I = S 3. On the contribution of foreign trade to growth & prosperity

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