Productive and Circulation Capital

  • Geoffrey Kay


It is now necessary to consider the different forms that capital assumes at different moments in its circuit. As it passes through the spheres of production and circulation so capital changes; in one it is productive capital; in the other circulation capital. These two forms are as distinct from each other as the activities to which they correspond: the production of commodities in the one case; the buying and selling of them in the other. But in capitalist society the circuit of capital does not merely embrace the spheres of production and circulation, it unites them: they remain distinct, but they are inseparable. So it is with the two forms of capital that operate within them: while each has its own distinguishing features, they share the common property of being capital and are governed by its general laws.


Productive Capital Capitalist Society Capitalist Basis Commodity Production Industrial Capital 
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  1. 4.
    Capitalism has created an accounting apparatus in the shape of banks … Without big banks socialism would be impossible’ (V. I. Lenin, Can the Bolsheviks Retain State Power? Selected Works, vol. 3, (London: Lawrence and Wishart, 1971), p. 376).Google Scholar

Copyright information

© Geoffrey Kay 1975

Authors and Affiliations

  • Geoffrey Kay
    • 1
  1. 1.The City UniversityLondonUK

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