Ask Prof Wolff: How Marx Defines Capital and Why It Matters

A Patron of Economic Update asks: "Do you think that it might be worthwhile disambiguating the differences (and general confusion) among assets, capital, and capitalism as defined by Thomas Picketty in 'Capitalism in the 21st Century' vs Marx?"

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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Love when Prof. Wolff takes the time to explain these concepts and share his deep understanding and authority on Marxist economics. Helps me go further in analyzing the world on a daily basis.

[zebj]

When explained like this I can understand clearly (as opposed to dialectic materialism or something that I haven't got a clue about - but apparently it's important). Thank you 👏.

[FLEXAHOLIC]

It’s in the inherent nature of capital to undermine traditional values and institutions because the point of capitalism is to make desire and capital align and those traditional values, institutions, beliefs etc were what gave strata/foundation to desire.

[yokoono]

Easy listening. Always wait the naration by Prof Wolf. Thank you

[shooter]

Enjoying these segments, they allow Dr. Wolff to go more in depth on academic topics that he might not get to while covering the news

[macanoodough]

I think this is the most important aspect of Marx, that his explanations seem more scientific. In looking at any problem it's not really up to us to define it, we have to see what the effects are, the causes, etc. So what Marx did seems to be to rewrite the Glossary of Terms in order to think more correctly about every variable there can be in capitalism. It also would explain why it's so easy to gaslight his ideas. The very definition of arguing semantics and why they are, by far, the hardest thing to correct...

[peternyc]

Prof Wolff's definition of capital for tonight's video seems to be that capital assumes capitalism, without which capital would have to be separated into 2 categories - physical capital (machines and tools) and financial capital. Both forms of capital are 100% artificial because they only "expand" when employed inside of capitalism. In other words, M-C-M' is the circuit of that expansion, and outside of capitalism that expansion would not occur.

[antimattv]

Prof Wolff, I am pleased to inform you and everyone here that the popular channel "Some News" just had an hour long video on inflation! They didn't have the employer/employee aspect, but they were not far off the mark.

[indricotherium]

I think the operative definition of capitalism in its current form is 'concentrated augmenting and hoarding of a managed flow of wealth and income.' Definitions based on machinery or value can at best now be used to describe stages in the process that are no longer of any hands on interest to the small number of principal beneficiaries of the system.

[TiagoMorbusSa]

This is so simple but you put it so well, amazing video 🙏

[amritamagdala]

Thank you this is the clearest explanation I´ve received on the matter. Now, the question is whether we can create a system that also cares for the environment, that pays attention to the consequences. It is time therefore, to understand we've developed the means and understanding to create technology in a way that also supports the environment. It is also time perhaps to understand we've outgrown capitalism in the same way we did slavery and feudalism, not only morally or spiritually wise but in terms of sustainability.

[peternyc]

This is a brilliant video. The self expanding quality of capital in capitalism must be directly related to the degree of exploitation of labor, and this must assume (I think) that other transactions (buying and selling) in the production process are exchanges of "equivalents" (not including the labor involved in each of these 'equivalents.' If I sell you A and you give me B in the transaction, then A = B. As such, any profit (self expansion) must be due to the one ingredient that is able to be exploited - labor.

[davidluckens]

this is classic -Prof Wolff at his accessible best

[GhostOnTheHalfShell]

Money propagation is unique and differs from trade. When a loan is paid off (and even only partially paid off) it has ‘grown’ of itself. It can expand like this without limit, unlike a crop which will meet with limits on agricultural productivity and land mass limitations. It is also done without effort (compare with trade). It is the very essence of capitalism in this sense.

interest is wealth redistribution from labor to creditors (the rich) drawing from every scrap of economic activity and concentrating

[cammcdoodle]

Technology, like "progress, " is a double-edged sword.

[davidevans]

Humans learn something new is self expanding value.

[PoliticalEconomy]

Im sure Piketty includes human capital. Sorry for the correction Dr Wolff

[davidevans]

United community is self expanded value.

[suncoastsolarpunk]

An interesting thing to consider: Jubilee, and prohibitions on ursury

[davidevans]

There's no pricing without servitude to an inanimate object.