Diagram of Economic Movements in a Capitalist System
Balances?
Now,
to devise an alternative to the way things are done within
Capitalism, it is imperative to understand how that regime managed to
finance new start-ups and expansions. For those will still be
required even in a Socialist State.
Now, when a capitalist firm traded, it had to balance on the one hand
its costs, including labour and all its committed to payments for all
its used services, with its income. But that alone did not determine
the price of what it was that the company produced for the market.
For it was “owned” by a group of investors, who had put up the
original capital, and they would expect (and get) an annual dividend
– a proportion of what they owned in shares of the company as
regular recompense.
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