Capital

Definition

Capital refers to the financial assets or resources that can be used to generate wealth, including money, property, and other assets. In a broader context, it can also represent the social, cultural, and intellectual resources that contribute to an individual's or a society's ability to create value. Understanding capital is crucial for analyzing systems of production and power dynamics in society.

5 Must Know Facts For Your Next Test

1. Capital can take many forms, including financial capital (money), physical capital (buildings, machinery), and human capital (skills and knowledge).
2. In Marxist theory, capital is central to the critique of capitalism, where the accumulation of capital leads to class struggles between the bourgeoisie and the proletariat.
3. The concept of reification is closely tied to capital, as it refers to the process by which social relationships are transformed into things or commodities, obscuring their social origins.
4. Louis Althusser's ideas about ideology relate to capital in that he argues that the state apparatus functions to perpetuate the conditions necessary for capital accumulation.
5. Understanding capital is essential for analyzing economic systems and their impact on social structures, as it influences power relations and societal norms.

Review Questions

• How does capital function as a central concept in understanding class relations in society?
  • Capital serves as a critical element in the analysis of class relations by highlighting the economic disparities between those who own productive assets and those who sell their labor. The bourgeoisie, who possess capital, exploit the labor of the proletariat to generate surplus value. This dynamic creates inherent tensions and conflicts within capitalist societies, as laborers seek better wages and working conditions while capitalists aim to maximize profits.
• In what ways does reification connect with the concept of capital in a capitalist economy?
  • Reification connects with capital by illustrating how social relationships are transformed into commodities that are treated as objects rather than human interactions. This process obscures the true nature of labor and the exploitation involved in capital accumulation. In capitalism, workers' labor becomes a commodity that can be bought and sold, while their social identities are reduced to economic transactions, reinforcing class divisions and alienation.
• Evaluate Louis Althusser's perspective on ideology in relation to capital and its role in maintaining social order.
  • Louis Althusser's perspective on ideology emphasizes how it functions to sustain the existing power structures associated with capital. He argues that ideological state apparatuses, such as education and media, perpetuate beliefs that align with capitalist interests. By shaping individuals' understanding of their place within society, ideology ensures that the accumulation of capital continues unchallenged. This interplay between ideology and capital reveals how social order is maintained through consent rather than coercion, influencing people's perceptions of their roles within the capitalist framework.

Related terms

Surplus Value: The difference between the value produced by labor and the actual wage paid to laborers, often seen as a source of profit for capitalists.

Bourgeoisie: The social class that owns the means of production and is associated with capital accumulation and economic power in a capitalist society.

Labor Power: The capacity of workers to perform work, which is considered a commodity that can be bought and sold in a capitalist economy.