What Is the Concentration of Wealth?

Capital concentration refers to the merger of various capitals that have been formed. It is the rapid increase of individual capital achieved by the annexation of small capital by large capital, or the combination of several small capitals into a small number of large capitals. Strong leverage to accelerate capital concentration is competition and credit. In the process of capitalist competition, large enterprises are strong and in an advantage, and they can annex SMEs to form larger capital. Credit, on the one hand, supports the destruction and annexation of small and medium-sized capital by large capital, and on the other hand, promotes the combination of small and medium capital to form a large-scale joint stock company. Capital concentration is an inevitable result of the development of capitalism. ^[1]

Capital concentration

Capital concentration is the process of merging small and medium capitals into a small number of large capitals.

Capital concentration is the redistribution and combination of capital that already exists and performs functions among various capitalists, so that

When Marx was studying the law of capital concentration, he

Marx on Capital Concentration

In the age of Marx's "Capital", the capitalist world has not seen a large-scale wave of mergers and acquisitions. Although Marx did not use the concept of corporate mergers and acquisitions in his "Theory of Capital," the capital concentration theory established from his detailed analysis of the emergence and development of capitalist production methods and the inherent laws of the capital movement analyzed the causes of capital concentration. , Mechanism and its development trend, which already contains rich corporate mergers and acquisitions ideas.

He believes that capital concentration is "the accumulation of capitals that have formed, the disappearance of their individual independence, the exploitation of capitalists by capitalists, and the conversion of many small capitals into a small number of large ones." Therefore, this type of growth is not subject to the absolute growth of social wealth. Constraints.