Sociology Plus
Capital Accumulation Definition
Capital accumulation is the central dynamic of capitalist development, referring to the process by which capital is expanded through the production, appropriation, and realisation of surplus value. In Marxist theory, this process involves the creation of capital by exploiting workers and expropriating the surplus value generated from their labour. This accumulated capital is then collected in fewer hands, who subsequently employ it to generate further capital through increased exploitation.
Marxist Perspective
From a Marxist viewpoint, capital accumulation is intrinsically linked to capitalist relations of production. It represents the mechanism by which wealth is generated within the system, driven by the extraction of surplus value from labour.
Conventional Economic View
In conventional economics, capital accumulation is viewed as an important component of overall economic growth. In this context, it refers specifically to a country’s net investment in fixed assets, which includes tangible items such as equipment, machinery, inventories, and buildings, alongside intangible assets like social overhead capital and overseas assets.