- 20 Mar 2009 15:48
#1841213
By FallenRaptor
Marx's analysis of capitalism begins with the commodity. In order for an object to become a commodity, it must have two characteristics: it must have utility and It must be exchangeable. The value of commodities is thus expressed as use-value and exchange-value. This leaves the problem of how to objectively measure exchange value. Use value cannot be used because all use-values are subjectively and qualitatively different. In order to measure and compare exchange values a common denominator is necessary. One such common feature is that commodities are products of labor.
The labor theory of value proposes that value of commodities are to be measured by their socially necessary labor time, that is, the time required to produce something under normal conditions with the average degree of skill prevalent at the time. Of course, not all labor is the same as creating different types of commodities requires different types of labor. The type of labor that creates qualitative characteristics (use-values) is referred to as concrete labor. Since we are dealing with exchange-value, we cannot use concrete labor as the measurement. We can only use general labor regardless of concrete conditions, or abstract labor. Therefore, exchange value is equal to socially necessary abstract labor time.
Price is the market representation of value, but it does not always represent value accurately. Supply and demand cause prices to temporarily fluctuate from their value. Therefore, value is truly expressed in price when supply and demand are in equilibrium.
The purpose of capitalist production is to create surplus-value, the value of commodities minus the value of capital and wages embedded in them. It is from surplus value which profits are derived. Capitalists purchase the labor-power (mental & physical capacity to work)* of workers to make them produce more value than what the labor-power is worth, thus exploiting them. It is important to understand, however, that Marxism does not make any normative argument that workers have right to their exploited labor. Capitalists exploit workers in the same sense that man exploits nature.
The worker feels he has the right to sell less of his commodity at a higher price, while the capitalist wants more of the commodity at a lower price. Class conflict under capitalism arises from conflict between buyers and sellers, and the labor market is usually a buyer's market. In cases of such conflicts, it is force that ultimately decides the resolution.
*Like all commodities, the value of labor-power is determined by the amount of socially necessary labor-time embedded in it. This includes the value of goods and services to maintain the worker's livelyhood and the value of any training workers may have had.
Marx's analysis of capitalism begins with the commodity. In order for an object to become a commodity, it must have two characteristics: it must have utility and It must be exchangeable. The value of commodities is thus expressed as use-value and exchange-value. This leaves the problem of how to objectively measure exchange value. Use value cannot be used because all use-values are subjectively and qualitatively different. In order to measure and compare exchange values a common denominator is necessary. One such common feature is that commodities are products of labor.
The labor theory of value proposes that value of commodities are to be measured by their socially necessary labor time, that is, the time required to produce something under normal conditions with the average degree of skill prevalent at the time. Of course, not all labor is the same as creating different types of commodities requires different types of labor. The type of labor that creates qualitative characteristics (use-values) is referred to as concrete labor. Since we are dealing with exchange-value, we cannot use concrete labor as the measurement. We can only use general labor regardless of concrete conditions, or abstract labor. Therefore, exchange value is equal to socially necessary abstract labor time.
Price is the market representation of value, but it does not always represent value accurately. Supply and demand cause prices to temporarily fluctuate from their value. Therefore, value is truly expressed in price when supply and demand are in equilibrium.
The purpose of capitalist production is to create surplus-value, the value of commodities minus the value of capital and wages embedded in them. It is from surplus value which profits are derived. Capitalists purchase the labor-power (mental & physical capacity to work)* of workers to make them produce more value than what the labor-power is worth, thus exploiting them. It is important to understand, however, that Marxism does not make any normative argument that workers have right to their exploited labor. Capitalists exploit workers in the same sense that man exploits nature.
The worker feels he has the right to sell less of his commodity at a higher price, while the capitalist wants more of the commodity at a lower price. Class conflict under capitalism arises from conflict between buyers and sellers, and the labor market is usually a buyer's market. In cases of such conflicts, it is force that ultimately decides the resolution.
*Like all commodities, the value of labor-power is determined by the amount of socially necessary labor-time embedded in it. This includes the value of goods and services to maintain the worker's livelyhood and the value of any training workers may have had.
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