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The nature of capitalism is to invest a sum up front (the capital) in something capable of producing more output later (usually when combined with another resou
by fennecfoxen 11y ago
The nature of capitalism is to invest a sum up front (the capital) in something capable of producing more output later (usually when combined with another resource you spend money on, including Labor). Then, because you bought the capital and you bought the inputs, you're entitled to the outputs, or the money you get from selling the outputs.
Capitalism is quite compatible with a zero-credit economy (though that deprives it of a force which both accelerates and democratizes capital formation).