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Capital accumulation

Capital accumulation Definition

In economics and political economy, capital accumulation is often equated with investment. Capital accumulation refers to either real investment in means of production or financial investment in paper assets, though one can also refer to "human capital accumulation," i.e., new education and training. It is most common to refer to capital accumulation as investment in real capital goods.

In Marxian political economy, capital accumulation involves investment in capital goods, but also has an additional meaning: it refers to the reproduction of capitalist social relations (institutions) on a larger scale over time, i.e., the expansion of the size of the proletariat and of the wealth owned by the bourgeoisie.




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