At the same time, because of the introduction of new machinery, many laborers are dismissed and become the unemployed. In this manner, the increase of profit and the increase of wages are mutually contradictory. Therefore, in the capitalist society the increasing of poverty is inevitable. In order to gain as much profit as possible, capitalists compete with each other and introduce new machinery. Thus, the capital invested for machinery increases, and capital accumulation is unavoidably required.
Small capitalists go bankrupt, and their production means are absorbed by large capitalists.
During the process of bankruptcy and absorption, capital is gradually centralized by a few large capitalists, and the entire middle class declines. Thus, two major classes, a small minority of large capitalists, and a large proletarian majority are formed. The proletarian masses, however, will finally unite and overthrow capitalist society. Today, automatic production machinery has appeared and is producing enormous profit. Machinery is undeniably variable capital.