Karl Marx Vs Command Economy

Today, many will agree that the world revolves around commerce, as the economy has been the main focal point of many thriving nations. Globally, the most common economic system is a mixed economy, which is a combination of a command and market economy. A command economy is focused on the central government. In a command economy, the government has control over the marketplace, and decides what is produced and sold. A market economy focuses on private business, and it allows for free trade and competition. In a market economy, individuals and businesses can buy as sell as they wish. Capitalism is known as a market economy, and it is practiced in the United States along with other countries. Karl Marx criticizes capitalism and offers communism, …show more content…
Marx uses an equation to demonstrate the concept of exchange value, which is X of commodity A = Y of commodity B. This equation demonstrates that the exchange value of a commodity appears when two commodities are exchanged and both of their use-value equate. The X and Y variables in this equation represent quantity. This demonstrates that although the quantity can differ, the use-value could still be equal, giving each commodity an exchange value. For example, twenty pieces of cotton could equal one t-shirt. Therefore, the main idea of exchange value is that commodities could be exchanged at different quantities with the same use-value. Commodities contain both use and exchange value, but ultimately, a commodity is a product of human labor. This is the main reason commodities are commensurable. Labor is what gives a commodity an exchange value. There is also other reason why commodities are commensurable. Without a use-value, commodity wouldn’t need to be obtained, making them useless. If there is no use-value, then there would be no exchange value, because useless products would never be exchanged in a market place. Therefore, both the exchange and use-value are factors in the commensurability of commodities, which is embodied in the fact that commodities are products of