This article focuses on the interconnection of class and race with capitalism. First it presents a definition of capitalism and its attitude towards civil statuses and exploitation. Secondly, it analyzes the origins of racism in capitalism despite its emphasis on freedom and equality, and its indifference to the social identities of the people it exploits. Consequently, it examines racial oppression as a strategy for capitalist control of the laboring class. In the end it focuses on the very important distinction between oppression and exploitation. These distinct relations also have very different impact on the behavior of social agents and groups, their life opportunities and forms of social conflict. If we want to understand how racial hierarchies reproduce capitalist class relations, we have to understand the basic requirements of class relations and capitalist reproduction itself.