Commercial Capital and Commercial Profit

Abstract

The desire of industrial capital to reduce circulation time and costs leads to the independence of commercial capital, which is capital specifically tasked with the operations for the sale of commodities. Commercial capital purchases commodities from industrial capital at a price cheaper than the production price, and by selling the products at the production price, it thus obtains a profit from industrial capital. Because commercial capital can store a large quantity of commodities, it is possible for fictitious demand to arise for industrial capital prior to the sale of commodities to the final consumer. Based on the great elasticity of the production process, industrial capital produces a huge quantity of commodities that are sold to commercial capital. If it becomes clear that these commodities cannot be sold ultimately, the phenomenon of crisis arises among the wholesalers. The internal connections of the reproduction process that are concealed as a result of the independence of commercial capital ultimately penetrate in this way.