What does "industrial capital cycle" mean?

Industrial capital cycle refers to the movement process that industrial capital goes through three stages: purchase, production and sales, and adopts three functional forms: monetary capital, production capital and commodity capital to realize value proliferation and return to the original starting point.

Three stages of industrial capital cycle

Industrial capital circulation goes through three stages: purchase, production and sales.

(1) purchase stage. Its function is that capital purchases means of production and labor with money, realizes the transformation from monetary capital to production capital, and prepares conditions for surplus value production. Expressed as.

(2) production stage. Its function is that capitalists use the purchased labor and means of production to produce goods including surplus value, and realize the transformation from production capital to commodity capital. Expressed as. Its position is the decisive stage of capital circulation.

(3) the sales stage. Its function is to sell goods to realize value and surplus value, and to complete the transformation from commodity capital to monetary capital. Form a whole. Its position is the last stage of capital circulation. Whether commodities can be sold and get surplus value is related to the continuation of capital reproduction and the fate of capitalists.

The first and third stages are the circulation process of capital, and the second stage is the production process of capital. Therefore, the circulation process of industrial capital is the unity of circulation process and production process.

Necessary conditions for the smooth progress of industrial capital circulation

First, the three functional forms of capital coexist simultaneously in space. In other words, all capital must be divided into three parts according to a certain proportion and exist in three functional forms at the same time. The proportion of these three parts depends on the nature of production, technical level and purchase and sale of enterprises.

Second, the three functional forms of capital follow each other in time. That is, the capital in each functional form must be transformed in turn, from one stage to the next, from one functional form to the next, and then return to the original starting point through circulation and keep moving.

The coexistence in space and the inheritance in time of the three functional forms of industrial capital are mutual preconditions and conditions. Therefore, the coexistence and successive operation of three functional forms and three circular forms of industrial capital is a necessary condition for industrial capital to ensure the circular movement of frontier political parties.