Simple Reproduction

Title: Simple Reproduction
Description: Marx's diagram of simple reproduction is shown in [the Figure]

Here, the commodity product C' is divided into two parts: C, representing the value of advanced capital; and c, representing surplus-value. The money capital M' for which commodity capital is exchanged is similarly divided into M and m. M is once more advanced for new elements of productive capital, C< LMP , which function in the sphere of production on the same scale as before (P). Realized surplus-value m is used to purchase the capitalist's means of consumption, commodities c; m, therefore, serves not as capital advanced for the purpose of value expansion, but as money spent for personal, as opposed to productive, consumption. The capitalist's personal consumption, c--m--c, originates in the circuit of industrial capital, but becomes separated from it.
Designer: Fox, John
Date: 1985
Source: Understanding Capital Volume II
Bibliographic Citation: John Fox, 1985. Understanding Capital Volume II. Progress Books. Figure 2