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Karl Marx‘s Capital Vol. 2 (Part 3/4)

Theory & Philosophy

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Capitalism

Capitalism can take one of two forms: simple reproduction or expanded reproduction. In simple reproduction, money is just put back in the system to keep it going at the rate it's going and then used as revenue for sports cars and yachts. Expanded reproduction sees some extra profits spent on making production more efficient. But this presents risks because you start to have more means than there is demand. So they may sit on money in the form of a hoard before giving it out through credit. This explains how capitalism is a system that has possibility for us to overproduce our products.

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