this post was submitted on 25 Nov 2025
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[–] Cowbee@lemmy.ml 11 points 3 weeks ago (15 children)

Not necessarily. Capitalism functions by the following circuit:

M-C...P...C'-M'

Money is used to buy commodities, such as machinery, raw materials, and labor power, then production happens, then higher value commodities are the result of said production and sold for greater sums of money. M' is fed back into this system, and M'' is output at the end, over and over. The increase in value comes from unpaid labor, ie wages that don't actually cover all of the value created, because capitalists cannot profit otherwise.

Socialist systems don't have equal pay for everyone (that isn't the goal to begin with), but also don't have this system of capital ownership as the principle aspect of their economies and as such private ownership is phased out over time in these countries.

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