this post was submitted on 30 Sep 2024
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The rest of your points seem fine, though
^Correction: 140 is the value of the commodties, 120 is merely the cost of constant and variable capital bought to make commodities
But just to reiterate my point, how does the industrial capitalist preserve his capital value of 120, while adding a surplus value of 20 onto it, despite the financial capitalist's taking of principal and sum?
Because it seems to me, that after the process of selling the commodities, the industrial capitalist has to deal with the following costs:
100 + 5 = principal + interest, taken by the money capitalist (note: the interest is derived from the surplus value created, due to 5% interest)
20 = variable capital paid
140 - 125 = 15
Leaving 15 to be the industrial capitalist's profit, of the original surplus value of 20.
However, a transformation from 120 capital --> 15 increase seems to me a decrease... to counter this, this would indicate some preservation of the initial capital used in production, to continue capitalist expansion.
TO make it so that 120 capital -> + 20 surplus value -> 140 capital
I realized partway through editing my answer what I missed, I think I got it now though.
He owes the capital back. He doesn't keep it, he is buying its use temporarily. He started without it and pays it back at the end, everything has depreciated in the normal process in the interim.