Circulating capital

The term Circulating capital comes from Adam Smith and is with him and in the theory of Karl Marx, in contrast to the fixed capital of the capital component of the

• In addition to the raw material (raw materials and / or semi-finished goods ) and the excipients ( lubricants, office supplies, etc., including the non-material aids energy and lease ), the circulating parts of the constant capital,
• Also the variable capital and surplus value includes (as withholding of wages).

Operation

The added value forms a special feature, because it is not applied previously, but results from the application of living labor power in production. He first forms a part of the value of the goods produced and only takes in the sale of the same to the money-form, in which he returns to the entrepreneur who uses it as his income, or partly to the accumulation. The still considered to be deducted from his part -conceived from the classical economics profit kinds of rent and interest on capital are the latest since the factors of production theory of JB Say no more paid out of the surplus value, but added to the circulating capital ( see above the lease ). So the value-added takes no whole cycle, but is in a sense mitzirkuliert only half envelope.

Circulating capital / circulating capital

This peculiarity of the added value differs from the circulating capital circulation of capital, which exclusively

• Of Applied circulating part of the constant capital (ie the actual value terms involved in the production of raw and auxiliary materials ) and
• The applied variable capital ( wages, which in shift operations, the total wage bill must be divifdiert by the number of production shifts, because of course, only one layer of "simultaneously" works, ie " applied " is ).

This circulation of capital is always applied only to a capital turnover and performs in the period of depreciation of fixed capital, which limits the an envelope of the total capital, a series of envelopes. His circuit consists of:

This whole envelope makes the constant and variable components of this capital equally to circulating capital, even if they differ in the value formation process as a fundamental constant and variable capital.

As with the fixed capital, it is also the circulating capital is not the material function, ie about entering into a raw material in the final product, which makes it circulating capital. Also an adjuvant which is not mentioned again in the finished product, is part of the circulating capital. It is only important how the respective component of capital behaves in the period of turnover.