The accumulation of capital is the gathering or amassing of objects of value; the increase in wealth through concentration; or the creation of wealth. Capital is money or a financial asset invested for the purpose of making more money (whether in the form of profit, rent, interest, royalties, capital gain or some other kind of return). This activity forms the basis of the economic system of capitalism, where economic activity is structured around the accumulation of capital (investment in order to realize a financial profit).
Human capital may also be seen as a form of capital: investment in one's personal abilities, such as through education, to improve their function and therefore capital accumulation (wealth) in a market economy.
Read more about Capital Accumulation: Definition, Harrod–Domar Model, Marxian Concept of Capital Accumulation, Psychology, Sociology and Ethics of Capital Accumulation, Different Forms of Capital Accumulation, Regime of Accumulation, Environmental Criticisms, Capital Accumulation and Risk, Capital Accumulation and Military Wars, New Developments in Capital Accumulation
Famous quotes containing the words capital and/or accumulation:
“The great dialectic in our time is not, as anciently and by some still supposed, between capital and labor; it is between economic enterprise and the state.”
—John Kenneth Galbraith (b. 1908)
“Creation destroys as it goes, throws down one tree for the rise of another. But ideal mankind would abolish death, multiply itself million upon million, rear up city upon city, save every parasite alive, until the accumulation of mere existence is swollen to a horror.”
—D.H. (David Herbert)