Initial accumulation of capital

What is the initial accumulation of capital? If it's quite simple - a person worked, used personal tools. How much did with the help of their tools, so much has received. And most importantly, this person did not depend on anyone. The ruling class thought and decided: to take the instrument of labor and man into an employee. Naturally, all the profits will come in the pocket of the new owner. This is how the ruling class carried out the initial accumulation of capital.

History

The historical process of the initial accumulation of capital goes back to the era of feudalism. It was the transition from the feudal to the capitalist system that marked the era of the formation of capital. The transition process included two tasks: to deprive a person of the means of production in the form of land plots and turn it into an employee. The second task: to concentrate in the hands of the ruling class all finances and social means of production (tools).

In each state the process of the initial accumulation of capital went in its own way. In America, this is the expulsion of the indigenous population (the Indians) on the reservation and the further development of slavery. In England - the forcible deprivation of peasants land allotments. Later, England used the confiscated land to expand the sheep industry, which stimulated the growth of the manufacturing industry.

The process of centralizing finance in the hands of the ruling class also did not contain any wisdom: a monopoly on the trade in certain goods, usury, the manufacture of manufactures, the right to trade in liquor for payment, and the monopolization of rail transportation. Thus, by the beginning of the twentieth century, the initial accumulation of capital in the countries of Europe, as well as in tsarist Russia, was completed. Formed classes of the proletariat and the manufacturers (entrepreneurs).

The initial accumulation of capital in Russia in the 90s was accompanied by Some differences. The command and administrative system that regulates the formation of prices and the allocation of resources has fallen under the pressure of a market economy. The difference between the current process of capital accumulation and the classical process is that wage labor already existed in Soviet Russia. In the process of economic transformation, a class of entrepreneurs emerged, who had private property in their hands .

Nobody took away private property this time, it was obtained as a result of privatization of state property. This happened in different ways: entrepreneurship monopolized the sphere of services, redistribution of funds was effected in many industries (mostly light industry was preferred to the detriment of the MIC). The system of fuel and energy complex was divided between private investors. Add here a tremendous influx of foreign loans and the creation of many joint ventures. The reforms carried out contributed to the sharp growth of small and medium-sized businesses. Here you have a new formula for the process of capital accumulation.