Growth, Accumulation, and Public Sector

Abstract

This chapter explores capital accumulation, total output, and economic growth in various economic models, highlighting their roles and interactions. It distinguishes “total output” as the monetary value of goods and services produced at a given time from “growth,” defined as the increase in investable surplus value over periods. “Capital accumulation” is the addition to capital stock from surplus value, crucial for expanding productive capacity. The chapter examines how public sector activities, especially privatization, influence these models under different economic conditions. It delves into productivity and capital stock's roles in economic growth, factors transforming accumulated capital into productive assets, and the impact of international capital flows and market dynamics on surplus value utilization and economic development trajectories. Critiquing classical, neo-classical, and Marxist growth models, it discusses technological advancements, population dynamics, and income distribution within capitalist economies.