By Karl Marx

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CAPITAL VOLUME 2 KARL MARX was born at Trier in 1818 of a German-Jewish family converted to Christianity. As a student in Bonn and Berlin he was influenced by Hegel’s dialectic, but he later reacted against idealist philosophy and began to develop his theory of historical materialism. He related the state of society to its economic foundations and mode of production, and recommended armed revolution on the part of the proletariat. In Paris in 1844 Marx met Friedrich Engels, with whom he formed a life-long partnership.

The Role of Money Capital Chapter 19: Former Presentations of the Subject 1. The Physiocrats 2. Adam Smith (a) Smith’s General Perspectives (b) Smith’s Resolution of Exchange-Value into v+s (c) The Constant Capital Component (d) Capital and Revenue in Adam Smith (e) Summary 3. Later Writers Chapter 20: Simple Reproduction 1. Formulation of the Problem 2. The Two Departments of Social Production 3. Exchange Between the Two Departments: I(v+s) against IIc 4. Exchange Within Department II. Necessary Means of Subsistence and Luxury Items 5.

When department I sells raw materials and equipment to department II (to replace the value of IIc used up in the previous production cycle), commodities flow from department I to department II, while money flows from department II to department I. It has to be determined where that money initially came from. Conversely, when department II sells consumer goods to the workers of department I, to enable them to reproduce their labour-power, commodities flow from II to I, while money flows from I to II.

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