What is the initial accumulation of capital? If it’s quite simple, a person worked, used personal tools. How much he did with the help of his tools, he received so much. And most importantly, this person was not dependent on anyone. The ruling class thought and decided: to withdraw the instrument of labor and man to turn into a hired worker. Naturally, all the profit will go into the pocket of the new owner. This is how the ruling class realized the initial accumulation of capital.
History
The historical process of the initial accumulation of capital is rooted in the era of feudalism. It was the transition from the feudal to the capitalist system that marked the era of the formation of capital. The transition process included two tasks: to deprive a person of the means of production in the form of land and turn him into an employee. The second task: to concentrate in the hands of the ruling class all finances and social means of production (tools).
In each state, the process of initial accumulation of capital went its own way. In America, this is the expulsion of the indigenous population (Indians) on the reservation and the further development of slavery. In England, the forcible deprivation of land by the peasantry. Subsequently, England used confiscated land to expand the sheep industry, which stimulated the growth of the manufacturing industry.
The centralization of finance in the hands of the ruling class also did not contain any tricks: a monopoly on the sale of certain goods, usury, manufacturing, the right to trade in alcohol for a fee, and the monopolization of rail transportation. Thus, by the beginning of the twentieth century, the initial accumulation of capital in European countries, as well as in tsarist Russia, was completed. The classes of the proletariat and manufacturers (entrepreneurs) were formed.
The initial accumulation of capital in Russia of the sample of the 90s was accompanied by
some differences. The command and administrative system that regulates price formation and resource allocation has fallen under the pressure of a market economy. The difference between the modern process of capital accumulation from the classical one is that wage labor already existed in Soviet Russia. In the process of economic transformation, a class of entrepreneurs arose who had
private property in their hands
.This time nobody took away private property from the people, it was obtained as a result of privatization of state property. This happened in different ways: entrepreneurship monopolized the service sector, funds were redistributed in many industries (mainly light industry was preferred to the detriment of the military-industrial complex). The fuel and energy complex system was divided between private investors. Add to this the massive influx of foreign loans and the creation of many joint ventures. The reforms contributed to the sharp growth of small and medium-sized businesses. Here is the new formula for the process of capital accumulation.