Chapter 5 – Capital

In economic science and policy, the term "capital"—used to mean capital, a capital, or some capital—seems at first glance to pose few problems. Upon closer examination, a consistent and unambiguous definition emerges that clarifies its role in the economic landscape, including the modalities of ownership of enterprises (see negotiable versus returnable shares).

Full employment and the avoidance of financial crises depend more than any other magnitude on capital as permanent financing of enterprises. This leads to a system of weights and measures that provides controlling and emancipatory instruments.

Propositions

• 5.1 Let's call capital financing that is permanent in nature and provided directly to an enterprise by one or more savers.
• 5.2 Strictly speaking, "permanent" is that which lasts until the end.
• 5.3 The unequivocal use of the noun capital is possible and desirable.
• 5.4 Quasi-equity is permanent corporate financing when it does not come directly from a saver.
• 5.5 Credit and capital are opposites in many respects.
• 5.6 An enterprise's capitalization rate is more important than the amount of its capital.
• 5.7 In a Objective political economy, a share capital is exclusively that of a commercial enterprise.
• 5.8 Refundable shares are those whose only method of liquidation is their redemption by the enterprise that issued them.
• 5.9 Negotiable shares are those whose most common method of liquidation is their sale to a buyer.
• 5.10 Capital standards are necessary for the permanent consolidation of the market economy.
• 5.11 The four basic economic regimes