From: glevy@PRATT.EDU
Date: Thu Mar 08 2007 - 09:41:19 EST
Now we turn to discuss at greater length the character of *commodities* [NB: plural, i.e. commodities, not commodity.] In Proposition #2, we agreed on the following initial (standard) definition (slightly modified to make plural). "commodities are any goods or services which are produced with the intention of selling them in order to make a profit". From this definition, and other stipulations already made, a number of statements can be made: a) commodities are *produced*. b) production requires the expenditure of *human labor*. c) *capitalist production* requires the expenditure of human labor by wage-workers (see proposition #2). d) capitalist production ordinarily involves the performance of labor by workers utilizing *means of production*. Those means of production themselves are commodities. The ownership and control of those means of production are, as we've already stipulated, key to the class relationship that exists under capitalism. d) the expenditure of labor requires that the producers (wage-workers) expend energy during a period of *labor time*. e) the definition of capitalism used (see proposition #2) means that capitalists control the labor and labor time of wage-workers. f) the definition of commodities indicates that commodities are produced in order to be *sold*. The *sale* of commodities requires not only exchange but *money* and *markets*. g) assume, as a simplifying assumption, that money also is a commodity. For the purposes of the model, assume that the money commodity is *gold*. h) The exchange of commodities requires that there are *exchange ratios* which are expressed in terms of money (gold). i) because all production takes the form of commodity production and all goods sold are commodities, this requires that both labor time and means of production take the form of commodities. Define the amount of money which is used to purchase means of production as *constant capital* and the amount of money used to hire wage-workers as *variable capital*. j) if products did not have a utility (a quality of being useful) for someone else, then they would not be produced or purchased as commodities. This follows from the definition of commodities since they are produced in order to be sold rather than individually consumed by the direct producers or by the class which controls the labor of the direct producers and owns the means of production (the capitalists). Hence, commodities must have a *use-value*. k) since commodities are produced with the intention of being sold, they must also have an *exchange-value*. Although the exchange-value of commodities is *presumed* (by the seller) before sale based on past transactions, it is only *known* once it has been sold on the market. To be continued -- assuming there is agreement on the above. In solidarity, Jerry > Capitalism is understood here as a *mode of production* > in which there is: > > * private ownership and control of the means of production by > capitalists where > * capitalists hire wage-workers > * in order to produce *commodities* > * for the purpose of making a *profit*. > > In this abstract model of 'pure' capitalism, there are *only 2 > classes*: capitalists, who have a monopoly of ownership and > control of means of production, and wage-workers who > neither own nor control any means of production. > > Let's use the following *initial definition* of commodity (to > be developed at greater length as we proceed): > > * any good or service which is produced with the intention > of selling it in order to make a profit.
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