Karl Marx’s ”Capital” Vol. 3 (Part 4/10)
Theory & Philosophy
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What Is Interest Bearing Capital?
Interest is a part of profit as we've said, it can only happen if there is excess floating around. The capitalist earns some extra from that money and then gives some of that extra back to the person lending it. So interest comes to assume a kind of natural element of that economy where it just seems as though interest bearing capital always existed. Whereas the profit rate is then naturalized to be the amount of profit earned minus the amount interest paid back to a lender. And so profit isn't just what is earned on top of production. Profit comes to equal what you've earned minus interest. That becomes what the profit is to the capitalist.
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