Why, according to Marx, are capitalists forced to accumulate?

According to Marx, accumulation is the process of reinvesting surplus value, which is the profit obtained from the exploitation of labor, back into the capital for further expansion and production. This process continually drives the growth of both industrial and financial capital leading to constant competition and innovations in the capitalist system.

Capitalists are forced to accumulate because of the inherent competition in the capitalist system. In an effort to maximize their profits, they continually have to invest in new technology, improved production techniques, and expand their market reach. This competitive drive forces them to accumulate capital to avoid being outpaced by their competitors and, as a result, suffer losses or be driven out of the market.

Marx argued that the process of accumulation creates a relative surplus population or industrial reserve army. This reserve army consists of unemployed laborers, underemployed workers, and those who are only able to find temporary jobs. The availability of this surplus workforce enables capitalists to control wages, as they can replace existing workers who demand higher wages with those from the reserve army. Thus, capitalists are always under pressure to accumulate capital to maintain their workforce at a relatively low cost.

In the capitalist mode of production, capital is divided into two main categories: constant capital and variable capital. Constant capital refers to the investments in machinery, raw materials, and facilities used in production, while variable capital refers to the wages paid to workers. According to Marx, during the process of accumulation, the proportion of constant capital to variable capital increases. Capitalists invest more in technology and machinery to increase productivity and reduce labor costs. As a result, the constant need for technological advancement and increasing productivity forces capitalists to continually accumulate capital.

Capitalist accumulation contributes to the crisis of overproduction, which is an inherent feature of capitalism. Overproduction occurs when the supply of goods exceeds the demand. This may lead to lower prices, reduced profit margins, and even economic crisis when industries cannot sell their products. Capitalists must keep accumulating capital to continue producing goods and expanding the market, which allows them to maintain and increase their profits. In conclusion, capitalists are forced to accumulate capital due to the competitive nature of the capitalist system, the need for constant technological advancement and innovation, the availability of a relative surplus population, the crisis of overproduction, and the increasing proportion of constant capital to variable capital. Marx considered these factors as inherent to capitalism and the driving force for its constant expansion and ultimately, its contradictions and crises.