Traditional Culture Encyclopedia - Traditional customs - Law of capitalist development
Law of capitalist development
The basic economic law of capitalism is the law of surplus value. The production of surplus value is the law of capital value proliferation. It dominates all major aspects and processes of capitalist production. Capitalist production is not for direct consumption by producers, but for the pursuit of surplus value. Capitalists' endless pursuit of surplus value, on the one hand, promoted the development of production, on the other hand, intensified the contradiction between proletariat and bourgeoisie. With the blind expansion of production, the demand with the ability to pay is relatively reduced, resulting in the crisis of commodity surplus. It is this law that determines the increasingly serious contradiction between the socialization of production and the capitalist private ownership of the means of production, and determines the occurrence, development and demise of the capitalist system.
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