What Are Depreciation Allowances?

Depreciation theory is an insurance fund source theory founded by German bourgeois economist Vagnier. It believes that the sources of insurance funds and depreciation funds are the same; the accumulation process of insurance funds is not new additional labor, but the process of capital transfer to production; the difference between the composition of insurance funds and depreciation funds lies only in the transfer of value Standardly, the former is based on the degree of danger, and the latter is based on the degree of wear. In other words, the source of insurance funds is not surplus value, not new labor, but transfer of value. ^[1]