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Basic contradictions of capitalism

The basic contradiction of capitalism lies in the contradiction between the socialization of production and the capitalist private ownership of the means of production. Under capitalist conditions, the progress of science and technology and the development of social productivity have continuously socialized production, but the ownership of the means of production is still in the hands of capitalists. Specifically:

  1. Socialization of production: With the progress of science and technology, social productivity continues to develop, and capitalist production is gradually socialized. However, this socialized productivity is transformed into the productivity of capital, which is used to efficiently extract surplus labor and occupy surplus value.
  2. Private ownership: The means of production and the socialized production process that should have been jointly owned by the workers are privately owned and controlled by a few capitalists. They pursue maximum profits, manage and regulate the production process, and ultimately occupy the socialized products produced by the workers and turn them into private property.
  3. Deepening contradictions: The development of capitalism has led to an increasingly higher degree of socialization of production and the continuous development of social productivity, but these productivity are increasingly concentrated in the hands of a few capitalists, leading to the further intensification of the basic contradictions of capitalism.