Question

Productivity, output per worker, has increased faster in 250 years under capitalism than in all of previous human history. Use the circuit of production to explain the efficiency of the capitalist mode of production.

Answer 1

The capitalist mode of Production increased the productivity and output per workers. The capitalist structure favoured private property and efficient uses of technology in the production process. During the last two centuries, capitalist as an economic structure maintained better levels of economic growth and development.The various forms of private money making like profits from trade, merchant trade, banking , renting preceeded the process of development of capitalist production.The circuit of commodity production is the main attraction of capitalist mode of production(M-C-M model). The money prices are determined by market forces or actors.
The capitalist movements takes place through three stages. In the initial stage the capitalist assumes the role of buyer on the commodity and also in the Labour market. The capitalist money transformed into commodities(M-C). In the second stage the capital passes through production process. He assumes the role of capitalist producer and produces more value commodities. In the final stage , the capitalist act as a seller and transformation of commodities into money occurs. (C-M).
Thus the capitalist structure evolved and developed through different stages.