Firms launch production by spending accumulated profit and new bank loans

Evidence

For production to begin, private monies (comprising previous profit and new bank loans) are spent by firms on inputs such as commodity labour (see 1.2.2), physical capital (see 1.3.2), buildings and land, and other commodities needed as raw materials. — Yanis Varoufakis, Technofeudalism, 808

Categorization

• DEFINE: Clarifies the opening move of capital’s circulation cycle: money from prior profit and fresh loans enters markets as investment in inputs.
• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 808