Marx explained in chapter one what a commodity was and the difference between exchange value and use value. A commodity is used to in order exchange for another commodity, therefore keeping trade and the labor force alive. As Marx would say “A means to an end”. Marx says “commodities must be realized as values before they can be realized as use values” (179) which further supports his point. Then they split off into either use value or exchange value which separate the commodities.
One must realize that people who build these objects do not find these objects useful, only in the sense that they are useful to other people that may be buying or trading with them. Even if they do not see that their commodity has use value, they always have to …show more content…
With a commodity this is where the priniciple of value emerges from which then goes hand and hand with value. Each person that produces some sort of comodity has the end goal of selling the product to someone that has use for it. As people do this they would need a baseline for how to value these comodities. This is where the basic concept of money would arise. Money is a simple universal way to establish the value of a commodity before it is sold. With the concept of money now in the picture one does not simply have to just trade a commodity for another commodity, they can get money in exchange to go buy something else. This makes it a lot easier for the individual that made the product to establish a value for his or her product that he or she …show more content…
So in short, there has to be an equal amount of money out there for how much value there is out there in commodities. The value put on money is essential in understanding because as Marx explains it the concept in the book, it will help us to understand the concept of inflation. Another interesting point that is brought up is the idea of a means of payment. Marx points out in the reading that “means of payment”, acting as a promise by the buyer to pay in the future. “He, therefore, buys it before he pays for it. The seller sells an existing commodity, the buyer buys as the mere representative of money, or rather as the representative of future money. The seller becomes a creditor, the buyer becomes a debtor.”
One must realize that people who build these objects do not find these objects useful, only in the sense that they are useful to other people that may be buying or trading with them. Even if they do not see that their commodity has use value, they always have to …show more content…
With a commodity this is where the priniciple of value emerges from which then goes hand and hand with value. Each person that produces some sort of comodity has the end goal of selling the product to someone that has use for it. As people do this they would need a baseline for how to value these comodities. This is where the basic concept of money would arise. Money is a simple universal way to establish the value of a commodity before it is sold. With the concept of money now in the picture one does not simply have to just trade a commodity for another commodity, they can get money in exchange to go buy something else. This makes it a lot easier for the individual that made the product to establish a value for his or her product that he or she …show more content…
So in short, there has to be an equal amount of money out there for how much value there is out there in commodities. The value put on money is essential in understanding because as Marx explains it the concept in the book, it will help us to understand the concept of inflation. Another interesting point that is brought up is the idea of a means of payment. Marx points out in the reading that “means of payment”, acting as a promise by the buyer to pay in the future. “He, therefore, buys it before he pays for it. The seller sells an existing commodity, the buyer buys as the mere representative of money, or rather as the representative of future money. The seller becomes a creditor, the buyer becomes a debtor.”