What is Capital? (1931)

From the March 1931 issue of the Socialist Standard

Capital is that part of wealth that is used to make a profit.

In order to produce commodities (that is, articles for sale) certain things are needed besides the worker’s labour-power. These are land, factory buildings, and machinery, motive power, in the form of steam, gas, or electricity, and raw materials. If the articles are chairs, then the raw materials required are wood and wire, canvas and cloth and many other things. Also the tools the workmen use, the motor lorries in which they deliver the goods, the typewriters and telephones and other office equipment. Now the money invested in all these things is capital, because they are used to make a profit for the owners. Even the money spent as wages paid to the workers, is capital, because it is paid with the idea of making profit for the employer.

Under Socialism, chairs and other useful articles will still be required. But as there will be no profit-making, no capital will be needed, either as wages or in any other way. The raw materials and machinery of production will be used by all who are able to work. There will be no propertied class of idlers. Society will produce goods for use, not for sale and profit-making.

J. E. Roe