The Commodification of Social Relationships: What Is Capital?

:Mainstream economics relies on a production function definition of capital, wherein the payments to capital represent a return to its usefulness. This vision of capital contrasts with more heterodox definitions, clarifying that capital actually represents social relations of power. Mainstream economic texts and prominent practitioners continue to give the production function view central importance in the theories they advance. An issue arises for those who espouse the mainstream view, when looking at certain types of non-collateralized debt obligations, such as student loans. If those owning student debt own capital, which seems true, then what exactly do they own? Using student debt as a crucible, I explore the issue of which definition of capital has better explanatory power. I endeavor to demonstrate that capital can only be capital when the state’s use of force can be called upon by the owner of that capital to divert income to the capital owner’s use.