Productive Capital definition of Productive Capital in the Free Online Encyclopedia.

Productive Capital

a functional form constituting the second stage of the circulation of industrial capital (seeCIRCULATION OF CAPITAL).

Unlike monetary capital and commodity capital, which are involved in the sphere of circulation, productive capital is involved in the sphere of production. The main function of productive capital is the creation of value and surplus value. Monetary capital and commodity capital modify the form of value.

In its natural form, productive capital consists of the means of production and labor power, which play unequal roles in the growth of value—a fact that underlies the division of productive capital into constant capital and variable capital. The real source of new value, including surplus value, is human labor, and in this sense, variable capital (payment for labor power). Variable capital increases in value in the process of production; constant capital (represented by the means of production) does not increase in value. From the standpoint of the character of the circulation of its various elements, productive capital may be divided into fixed capital and circulating capital (see).

Labor power and the means of production are the necessary factors in any social form of production. Productive capital reflects the capitalist mode of combining labor power and the means of production. K. Marx wrote: “The various economic epochs through which society has passed are differentiated by the special character of this combination and by the mode of achieving it” (in K. Marx and F. Engels, Soch., 2nd. ed., vol. 24, pp. 43–44).

Under capitalism, labor power and the means of production are characteristically combined through the purchase of both by the capitalist for productive consumption. By purchasing the means of production, the capitalist acquires property rights over the material conditions of production. By purchasing labor power, the capitalist acquires the right to use it and to extract surplus labor for the duration of the contract. The means of production and labor power become the material carriers of advanced capital and a form of existence of industrial capital.

Capitalist production creates new commodities with a higher value than the originally advanced capital. The difference between the advanced capital and the value of the newly produced commodities is the surplus value. Productive capital is transformed into commodity capital. Thus, the capitalist production of commodities is simultaneously the process of exploiting wage laborers.

REFERENCE

Marx, K. Kapital, vol. 2. In K. Marx and F. Engels, Soch., 2nd ed., vol. 24, chs. 1,2.

L. G. KRYLOVA

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No references found	It’s not productive capital which you can invest in and use to increase production of something. What rising interest rates mean for the price of gold by Andrew Mickey / Stockhouse Investment in human and physical capital inevitably gives way to periods of retrenchment, until productive capital is rearranged and technological progress motivates firms to invest in order to gain competitively and increase revenue. Keeping expectations real: capital spending to spark expansion by Thomas, Craig / Treasury & Risk We will achieve that only if Congress and regulators improve rather than strangle our capital markets in their current reform efforts, and if productive capital is left in the economy rather than taken away through massive tax increases. U.S. Chamber Calls for Policies to Spur Job Creation in Annual State ... by PR Newswire	Production methods production model Production Operation production packer production phase Production planning production printer Production Program production reactor Production Rejects Production Relations production requirements Production Reserves production standard Production Structure production system production tank production test Production Time production track Production Training production tubing production-decline curve Production-Line Manufacturing productive Productive Capital Productive Consumption productive cough Productive Forces Productive Labor productive time productivity productivity index Productivity of Agricultural Animals Productivity of Labor productivity ratio productivity software productivity suite productivity test Productivity, Theories of Produgol Prodvagon proem Proenzyme proerythroblast of Ferrata proestrus profane profession professional professional adviser Professional Army	production-decline curve Production-flow commitment Production-Injection Packer Production-line Production-line Production-Line Manufacturing Production-Marketing Association Production-Ordering Kanban Production-Sharing Contract Production-Type Method Invocations Production/Deployment Production/Sales/Inventory productional productional productional productional productional productions productions productions productions productions productive productive productive productive productive Productive and unproductive labour Productive and unproductive labour Productive Burp Productive Capital Productive Conservation on Working Lands Productive Consumption productive cough productive cough productive cough Productive Exudative Giant Cell Granulomatous Reaction Productive Exudative Giant Cell Reaction Productive force Productive forces productive inflammation productive inflammation productive inflammation productive inflammation productive inflammation, proliferative inflammation productive inflammation, proliferative inflammation productive inflammation, proliferative inflammation productive inflammation, proliferative inflammation Productive labor productive life productive life productive life productive life Productive Location Ally on Nexus Technology Productive Man-Hours Per Month Productive Members of Society Productive Moves per Hour Productive Mudharaba Productive Rotations on Farms in Texas Productive Safety Net Program Productive Sector Growth and Environment

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No references found

It’s not productive capital which you can invest in and use to increase production of something.

What rising interest rates mean for the price of gold by Andrew Mickey / Stockhouse

Investment in human and physical capital inevitably gives way to periods of retrenchment, until productive capital is rearranged and technological progress motivates firms to invest in order to gain competitively and increase revenue.

Keeping expectations real: capital spending to spark expansion by Thomas, Craig / Treasury & Risk

We will achieve that only if Congress and regulators improve rather than strangle our capital markets in their current reform efforts, and if productive capital is left in the economy rather than taken away through massive tax increases.

U.S. Chamber Calls for Policies to Spur Job Creation in Annual State ... by PR Newswire