Commodity (Marxism)

commoditycommoditiesM-C-MC-M-Ccommodity economycommodifiedM-Mobjectsproductionpseudo-
In classical political economy and especially Karl Marx's critique of political economy, a commodity is any good or service ("products" or "activities") produced by human labour and offered as a product for general sale on the market.wikipedia
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Law of value

economic lawslaws of capitalism
According to the labor theory of value, product-values in an open market are regulated by the average socially necessary labour time required to produce them, and price relativities of products are ultimately governed by the law of value.
Thus, the fluctuating exchange value of commodities (exchangeable products) is regulated by their value, where the magnitude of their value is determined by the average quantity of human labour which is currently socially necessary to produce them (see labor theory of value and value-form).

Socially necessary labour time

socially necessary labor timelabor timenecessary labor time
According to the labor theory of value, product-values in an open market are regulated by the average socially necessary labour time required to produce them, and price relativities of products are ultimately governed by the law of value.
If the market for a commodity is oversupplied, then labour-time has been expended in excess of what was socially necessary, and exchange value falls.

Use value

use-valueuse-valuesuse
How quantities of use-values are allocated in a market economy depends mainly on their exchange value, and this allocation is mediated by the "cash nexus".
The transformation of a use-value into a social use-value and into a commodity (the process of commodification) is not automatic or spontaneous, but has technical, social and political preconditions.

Capital (economics)

capitalcapital flowsinvestment capital
In Marx's analysis of the capitalist mode of production, commodity sales increase the amount of exchange-value in the possession of the owners of capital, i.e., they yield profit and thus augment their capital (capital accumulation).
For Marx capital only exists within the process of the economic circuit (represented by M-C-M') —it is wealth that grows out of the process of circulation itself, and for Marx it formed the basis of the economic system of capitalism.

Surplus product

surplusnecessary productsurplus production
Thus, producers trade in those goods of which those producers, have episodic or permanent surpluses to their own requirements, and they aim to obtain different goods with an equal value in return.

Capitalist mode of production (Marxist theory)

capitalist mode of productioncapitalismcapitalist
In Marx's analysis of the capitalist mode of production, commodity sales increase the amount of exchange-value in the possession of the owners of capital, i.e., they yield profit and thus augment their capital (capital accumulation).
Capitalist society is epitomized by the so-called circuit of commodity production, M-C-M' and by renting money for that purpose where the aggregate of market actors determine the money price M, of the input labor and commodities and M' the struck price of C, the produced market commodity.

Prices of production

production pricenatural pricesproduction prices
In capitalism, Marx argues, commodity values are commercially expressed as the prices of production of commodities (cost-price + average profit).
In Capital, Volume III, Marx considers the operation of capitalist production as the unity of a production process and a circulation process involving commodities, money, and capital.

Value-form

monetary theory of valueexpanded form of valueforms of value
The physical appearance of a commodity is directly observable, but the meaning of its social form (as an object of value) is not.

Commodity fetishism

fetishism of commoditiesfetishizedcommercial fetishism
The reifying effects of universalised trade in commodities, involving a process Marx calls "commodity fetishism," mean that social relations become expressed as relations between things; for example, price relations.

Commodity

commoditiescommodity pricescommodity good

Political economy

political economistpolitical economicspolitical economists
In classical political economy and especially Karl Marx's critique of political economy, a commodity is any good or service ("products" or "activities") produced by human labour and offered as a product for general sale on the market.

Karl Marx

MarxMarx, KarlMarxist
In classical political economy and especially Karl Marx's critique of political economy, a commodity is any good or service ("products" or "activities") produced by human labour and offered as a product for general sale on the market.

Adam Smith

SmithA SmithAdam Smith’s
This problem was extensively debated by Adam Smith, David Ricardo, and Karl Rodbertus-Jagetzow, among others.

David Ricardo

RicardoRicardianDavid Ricardo,MP
This problem was extensively debated by Adam Smith, David Ricardo, and Karl Rodbertus-Jagetzow, among others.

Johann Karl Rodbertus

Karl Rodbertus-JagetzowRodbertusKarl Rodbertus
This problem was extensively debated by Adam Smith, David Ricardo, and Karl Rodbertus-Jagetzow, among others.

Price

market pricepricesretail price
Value and price are not equivalent terms in economics, and theorising the specific relationship of value to market price has been a challenge for both liberal and Marxist economists.

Exchange value

exchange-valueexchange-valuesValue in exchange
How quantities of use-values are allocated in a market economy depends mainly on their exchange value, and this allocation is mediated by the "cash nexus".

Friedrich Engels

EngelsFrederick EngelsFrederich Engels
Marx refers to this as "simple exchange" which implies what Frederick Engels calls "simple commodity production".

Simple commodity production

simple commodity producers
Marx refers to this as "simple exchange" which implies what Frederick Engels calls "simple commodity production".

Relations of production

social relationssocial relations of productionProduction relations
Even so, in simple commodity production, not all inputs and outputs of the production process are necessarily commodities or priced goods, and it is compatible with a variety of different relations of production ranging from self-employment and family labour to serfdom and slavery.

Division of labour

division of laborspecializationspecialised
However, as the division of labour becomes more complex, a class of merchants emerges which specialises in trading commodities, buying here and selling there, without producing products themselves, and parallel to this, property owners emerge who extend credit and charge rents.

Money

monetaryspeciecash
This process goes together with the increased use of money, and the aim of merchants, bankers and renters becomes to gain income from the trade, by acting as intermediaries between producers and consumers.

Reification (Marxism)

reificationreifiedreify
The reifying effects of universalised trade in commodities, involving a process Marx calls "commodity fetishism," mean that social relations become expressed as relations between things; for example, price relations.

Social relation

social interactionsocial relationssocial interactions
The reifying effects of universalised trade in commodities, involving a process Marx calls "commodity fetishism," mean that social relations become expressed as relations between things; for example, price relations.

Supply chain

supplierssupply chainssupply-chain
Markets mediate a complex network of interdependencies and supply chains emerging among people who may not even know who produced the goods they buy, or where they were produced.