Marxist theory of the continuous transformation of surplus-value into capital. The transformation of surplus-value into capital is accumulation of capital. The scientific theory of accumulation of capital was founded by Marx. Before Marx, the classical bourgeois economists also conducted valuable studies on the question of accumulation of capital. For example, Adam Smith and David Ricardo held that the accumulation of capital is, different from the storage of money or commodities, only a deferral of consumption, where no increase in value takes place; accumulation of capital only takes place when money is used to employ workers to produce and bring back profits. However, they could not scientifically explain the source of accumulation of capital and regarded the thrift of capitalists as a means to increase the accumulation of capital; nor did they have a scientific theory of the organic composition of capital that could reveal the influence of the accumulation of capital on the condition of the working class. Based on his theory of surplus-value, Marx has exposed the secret of capital’s capability to extract unpaid labor and obtain surplus-value, explained both the transformation of surplus-value into capital and the emergence of capital from surplus-value, and created a scientific theory of accumulation of capital…
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