Ask Prof Wolff: How Marx Defines Capital and Why It Matters
TLDRIn this insightful response to a Patreon community question, Richard Wolff from Democracy at Work clarifies the distinction between mainstream economics' view of capital as a collection of non-human assets and Marx's conception of capital as a self-expanding value process. Wolff emphasizes that capitalism is characterized by the drive to expand value through the production of goods and services, a phenomenon that has led to rapid technological development but also environmental degradation and social inequality.
Takeaways
- 📚 Richard Wolff discusses the difference between the conventional definition of capital as a collection of non-human assets and Marx's view of capital as a self-expanding value process.
- 🤔 Tom Zarnack's question prompts an exploration of the concept of capital, highlighting the contrast between Piketty's and Marx's interpretations.
- 💡 Wolff emphasizes the importance of understanding capital not just as a 'thing' but as a transformative process that can increase value over time.
- 💰 Marx's definition of capital is presented as 'self-expanding value,' which involves a relationship or set of processes that grow the initial value.
- 📈 Wolff uses the example of borrowing and lending to illustrate how value can self-expand through financial transactions without the need for production.
- 🛒 Another example given is the merchant's activity of buying low and selling high, which also represents a form of self-expanding value.
- 🏭 Capitalism, according to Marx, is distinguished by the application of self-expanding value to the production of goods and services, making production a means of value expansion.
- 🕊️ Unlike in feudalism or slavery, capitalism's drive for expansion leads to rapid technological development but also to environmental destruction and social consequences.
- 💼 The capitalist system is characterized by the profit motive, where workers are hired to produce more value than their wages, thus expanding the capitalist's wealth.
- 🌐 Wolff invites the audience to engage with these fundamental concepts and to share such discussions to raise awareness and understanding.
- 💵 The video concludes with a call for support, both in sharing the content and financially, to continue the production of educational material.
Q & A
What is the main difference between the way Thomas Piketty and Karl Marx define capital?
-Thomas Piketty defines capital as a collection of non-human assets, such as tools, equipment, and machinery. In contrast, Karl Marx views capital as a process, a relationship in change, specifically self-expanding value.
Why does Richard Wolff believe it's important to distinguish between these two definitions of capital?
-Wolff believes it's important because it highlights the fundamental nature of capital as a transformative process rather than just a collection of assets, which is a perspective that can offer deeper insights into the workings of the economic system.
What is the concept of self-expanding value according to Marx?
-Self-expanding value, in Marx's view, is a set of processes or relationships that transform an initial value into something more over time, essentially making the value grow.
Can you provide an example of self-expanding value from the transcript?
-An example given in the transcript is the process of borrowing and lending money. If you lend $100 and receive $105 back with interest, the value of your money has self-expanded.
How does the concept of self-expanding value relate to merchants?
-Merchants are considered a form of capitalist because they engage in the process of buying goods to sell them at a higher price, thus the value of their goods self-expands through the act of commerce.
What does Richard Wolff argue is the unique aspect of capitalism in Marx's perspective?
-Wolff argues that the unique aspect of capitalism, according to Marx, is the infusion of the self-expanding value concept into the production of goods and services, making production a means of expanding value.
How does the profit motive drive capitalism differently from other economic systems like feudalism or slavery?
-The profit motive drives capitalism by urging the expansion of value through the production process itself, which is a departure from systems like feudalism or slavery where production was not primarily organized around value expansion.
What are the implications of capitalism's focus on self-expanding value for technology and the environment?
-Capitalism's focus on self-expanding value leads to rapid technological development but also contributes to the destruction of the natural environment due to the drive for profit often outweighing environmental considerations.
Why does Richard Wolff encourage discussions about basic concepts like 'what is capital?'
-Wolff encourages such discussions because they contribute to a deeper understanding and awareness of economic systems, which can lead to more informed conversations and potentially better economic policies.
What is the historical timeframe that Richard Wolff suggests for the emergence of capitalism as a mass phenomenon?
-Wolff suggests that capitalism as a mass phenomenon, where self-expanding value takes over the production of goods and services, is only three or four hundred years old.
How does the transcript define the role of a capitalist in the production process?
-In the transcript, a capitalist is defined as someone who buys tools, equipment, raw materials, and hires workers to produce an output worth more than the money they invested in production, thereby expanding value.
Outlines
📚 Capital as a Conceptual Debate
In this paragraph, Richard Wolff addresses a question from Tom Zarnack regarding the definition of capital in Thomas Piketty's book 'Capital in the 21st Century.' Wolff clarifies that while Piketty views capital as a collection of non-human assets like tools and machinery, Marx's conception is fundamentally different. According to Marx, capital is not a static thing but a dynamic process, a self-expanding value that involves a relationship that transforms initial value into a greater one over time. Wolff uses the examples of borrowing and lending, where money is lent with the expectation of receiving more back, and merchants who buy low and sell high to illustrate the concept of self-expanding value. He emphasizes the importance of understanding this distinction to grasp the true nature of capital.
🏭 Capitalism and the Self-Expanding Value in Production
This paragraph delves into the specific characteristics of capitalism as defined by Marx, where the self-expanding value concept is applied to the production of goods and services. Wolff explains that unlike simple lending or merchant activities, capitalism involves the active use of capital to invest in production with the expectation that the output will be worth more than the initial investment. This system is driven by the profit motive, where capitalists hire workers and utilize tools, equipment, and raw materials to create a product that can be sold at a higher value. This approach to production is a relatively new phenomenon in human history, and it has led to rapid technological development but also to the neglect of the environment and other negative consequences. Wolff encourages viewers to engage with these fundamental concepts and to support the spread of such knowledge.
Mindmap
Keywords
💡Capital
💡Self-expanding value
💡Borrowing and lending
💡Merchants
💡Capitalism
💡Production
💡Profit motive
💡Feudalism
💡Slavery
💡Technology
💡Environmental destruction
Highlights
Richard Wolff discusses the difference between Piketty's and Marx's definitions of capital.
Piketty defines capital as a collection of non-human assets, such as tools and machinery.
Marx's concept of capital is as a process and a relationship in change, not just a thing.
Wolff emphasizes the importance of understanding Marx's definition of capital as self-expanding value.
Capital, in Marx's view, is a set of processes that transform initial value into more over time.
An example of self-expanding value is the process of borrowing and lending money with interest.
Merchants are also seen as capitalists through their role in the self-expanding value process.
Capitalism, according to Marx, is distinguished by the self-expanding value taking over the production of goods and services.
Wolff explains that capitalism is a newer phenomenon, only a few centuries old as a mass occurrence.
The profit motive is central to capitalism, driving it in ways that feudalism and slavery were not.
Capitalism's drive for expansion leads to rapid technological development but also environmental destruction.
Wolff calls for contributions to discussions on basic concepts like the definition of capital to raise awareness.
The transcript highlights the need for financial support to continue sharing such educational content.
Wolff invites viewers to share the video with others to spread understanding of economic concepts.
The video encourages viewers to partner and financially support the production of educational content.
Transcripts
Browse More Related Video
5.0 / 5 (0 votes)
Thanks for rating: