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[682] Ricky: Credit and Centralization. I agree with Teight [681] that competition and credit
“work in unison to continue the process of
Centralization”. I would, however, like to expound on his slim
explanation of credit. Credit definitely plays a big role in the
financial investments of businesses. Teight explains, “Credit
provides the financial funds that businesses need to keep investing in
production”. In other words, credit funds the continuance of
production. This is true but this alone does not push the process of
centralization. Credit allows production not only to continue but to
also expand. Credit facilitates large-scale production (a precursor
to centralization) that would not otherwise be possible. As explained
by Hans [2002fa:436], this speeds up the
capitalist development. Several small wealth owners are able, thanks
to credit, to combine their wealth and thus become one big capitalist.
The individual capitalist is no longer forced to grow by the slow
process of accumulation. The small-capitalist stage is bypassed. Thus
Credit is indeed, as Marx described it, “the specific machine
for the centralization of capitals”. |
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