Capitalists first buy factors of production in the market as buyers, including labor and means of production, and complete the morphological change from monetary capital to production capital. If G stands for money, W stands for goods, A stands for labor and Pm stands for means of production, then the capital movement at this stage can be expressed as:

formula

that

middle

G-W, originally just a general commodity circulation behavior, has become a specific stage of industrial capital circulation because capitalists have bought labor, a commodity with special use value. The use price of labor force.

Value is the source of capital value multiplication. G-A is the most important condition for converting monetary capital into production capital. G-Pm is necessary only when the amount of labor purchased from G-A is realized.

In China, the goods purchased by monetary capital are not only divided into means of production and labor in quality, but also keep a certain proportion in quantity, that is, the quantity of means of production required to be purchased should not only absorb the things provided by workers.

Necessary labor, and must be enough to absorb the surplus labor provided by workers. After the purchase is completed, the capital cycle will enter the second stage.

The second stage: the production stage

Capitalists put the purchased means of production and labor into the production process to complete the morphological change from production capital to commodity capital.

circulation of capital

grow

The production stage is the decisive stage of capital circulation. At this stage, capitalists combine the labor force with the means of production, make a predetermined material transformation, and produce a certain number of goods. The newly produced goods are not

It is only different from the original factors of production in material form, and its value has also increased because it contains surplus value. if

P stands for production capital in the field of production, with dotted lines indicating the progress of the production process or the interruption of the circulation process, and with W' indicating the commodity capital containing surplus value, the formula at this stage is:

formula

Labor and means of production are the basic factors of production in any society. Here, because of their special combination, they constitute the material content of production capital. In capitalist society, workers and means of production are separated, and only by purchasing labor by capitalists can labor and means of production be combined to engage in the production of value and surplus value.

The third stage: the selling stage.

money

Capitalists sell goods with surplus value produced by workers and complete the morphological change from commodity capital to monetary capital. If W' is used to represent goods with surplus value, G' is used to represent surplus value.

The sales stage can be expressed by the formula: W'-G'-g'. The transformation from commodity to currency was originally a general commodity circulation behavior, and it became the third stage of capital circulation because of its surplus value.

The production stages are closely related, and W' already contains surplus value before entering the circulation process. For capitalist reproduction, the sales stage is a key leap. If this leap is not successful, it will happen.

If the goods can't be sold or sold out, the commodity capital can't be converted into monetary capital smoothly, the capital cycle will be interrupted or blocked, and the reproduction process will be destroyed. At this stage, the sales speed of goods and

Quantity is very important. Because of the different selling speed, the same capital value will play a very different role as a product forming factor and a value forming factor, and the scale of reproduction will also be greatly expanded to varying degrees.

Regardless of size. Here, the quantity of goods sold becomes the decisive factor. This is because commodity capital, as the capital undertaker that has proliferated, must completely complete the morphological changes in quantity in order to fully realize the surplus.

Value. In order to sell all the goods as soon as possible, capitalists must make their products marketable and meet the needs of society, which is difficult to fully realize in the reality of capitalist economy. After this cycle stage, capital

The principal value returned to the original monetary form, but the final currency G' was greater than the prepaid currency G. After the capital cycle returned to the monetary form, a new cycle began.