▁raw ▁materials , ▁labour ▁and ▁fixed ▁equipment . ▁That ▁was ▁capital ist ▁progress . ▁But ▁to ▁be ▁able ▁to ▁comp ete ▁in ▁product ▁mark ets ▁in ▁the ▁end ▁requires ▁enorm ous ▁amounts ▁of ▁invest ment ▁capital , ▁which ▁( 1 ) ▁cut s ▁out ▁most ▁would - be ▁produ cers ▁and ▁( 2 ) ▁low ers ▁the ▁profit ▁rate ▁on ▁invest ment ▁capital . ▁In ▁turn , ▁invest ors ▁will ▁no ▁longer ▁commit ▁very ▁large ▁amounts ▁of ▁capital ▁to ▁invest ment ▁projects ▁if ▁they ▁are ▁uncertain ▁about ▁whether ▁those ▁projects ▁will ▁yield ▁an ▁ade qu ate ▁return ▁in ▁the ▁future . ▁The ▁more ▁uncertainty ▁there ▁is , ▁the ▁more ▁difficult ▁it ▁is ▁to ▁" se cur it ize " ▁( ins ure ) ▁their ▁longer - term ▁invest ments ▁against ▁losses ▁of ▁capital . ▁If ▁the ▁state ▁will ▁not ▁provide ▁financial ▁backing , ▁private ▁fin ance ▁must ▁provide ▁it , ▁but ▁the ▁latter ▁is ▁rel uct ant ▁to ▁do ▁so ▁if ▁the ▁ris ks ▁out we igh ▁the ▁yields . ▁This ▁causes ▁a ▁powerful ▁development ▁of ▁capital ▁mark ets ▁and ▁supporting ▁financial ▁services , ▁including ▁shadow ▁bank ing ▁( cred it ▁facilities ▁by ▁non - bank ▁organizations ). ▁ ▁In ▁a ▁developed ▁capital ism , ▁the ▁development ▁or ▁decl ine ▁of ▁the ▁different ▁branches ▁of ▁production ▁occurs ▁through ▁the ▁contin ual ▁entry ▁and ▁exit ▁of ▁capital , ▁basically ▁gu ided ▁by ▁profit ability ▁criteria , ▁and ▁within ▁the ▁framework ▁of ▁competition . ▁Where ▁demand ▁and ▁prof its ▁are ▁high , ▁capital ▁moves ▁in