constant capital and variable capital

constant capital and variable capital

(MARXISM) the distinction between capital embodied in raw materials and plant and machinery, termed constant capital because it can bring no more to the value of output than its own value, and capital expended to purchase labour power, termed variable capital which, since it alone involves new work, is seen by Marx as possessing the capacity to create VALUE. See LABOUR THEORY OF VALUE, SURPLUS VALUE, ORGANIC COMPOSITION OF CAPITAL and CAPITALISM AND CAPITALIST MODE OF PRODUCTION.

Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000