or tangible assets (e.g. machinery, factory equipment) due to wear and tear, and aging. This is known as the depreciation of capital goods. Marxism and Marxist theory of class The analysis of the technological sophistication of the means of production and how they are owned is a central component in the Marxist theoretical framework of historical materialism and in Marx critique of political economy, and later in Marxian economics. In Marx's work and subsequent developments in Marxist theory, the process of socioeconomic evolution is based on the premise of technological improvements in the means of production. As the level of technology improves with respect to productive capabilities, existing forms of social relations become superfluous and unnecessary, creating contradictions between the level of technology in the means of production on the one hand and the organization of society and its economy on the other. In relation to technological improvements in means of production, new technologies and scientific breakthroughs can rearrange the market structure, create massive economic impact and disrupt the profit pool in the economy. Further impact of disruptive technologies may lead to certain forms of labour power economically unnecessary and uncompetitive and even widening income inequality. These contradictions manifest themselves in the form of class conflicts, which develop to a point where the existing mode of production becomes unsustainable, either collapsing or being overthrown in a social revolution. The contradictions are resolved by the emergence of a new mode of production based on a different set of social relations including, most notably, different patterns of ownership for the means of production. Ownership of the means of production and control over the surplus product generated by their operation is the fundamental factor in delineating different modes of production. Capitalism is defined as private ownership and control over the means of production, where the surplus product becomes a source of unearned income for its owners. Under this system, profit-seeking individuals or organizations undertake a majority of economic activities. However, capitalism does not indicate all material means of production are privately owned as partial economies are publicly owned. By contrast, socialism is defined as social ownership of the means of production so that the surplus product accrues to society at large. Determinant of class Marx's theory of class defines classes in their relation to their ownership and control of the means of production. In a capitalist society, the bourgeoisie, or the capitalist class,