Notes on Capital

Section 1: The Commodity

A commodity is any object that satisfies human want/need/desire (Ex: iron, paper, corn...). Outside of the social-sphere, commodities have no intrinsic value. A commodity has two forms: (i) use-value and (ii) exchange-value.

Use-value is the utility of a commodity. In other words, how it is consumed or used by humans. The use-value of a burger is only activated when I eat that burger. The use-value of a bike is only activated when I ride that bike. Use-value is not impacted by the amount of labor that went into creating the commodity, nor how muc the commodity goes for on the market. Use-value is expressed in quanities (1 barrel of hay, two ears of corn, etc)

Use-value implies that the commodity satisfies a social need. Some use-values are naturally occurring (air, water, etc). Some use-values need human lbor to obtain (I harvest the grain, I bake the bread). People generally coordinate their labor around use-value in order produce what they need/desire/want.

Exchange-value is the proportion in which one commodity is exchanged for another. For example, I give you 10 lbs of corn for 1 lb of iron. But what determines that 10 lbs corn = 1 lb of iron?? The use value of both of these commodities is completely different. I eat corn and I craft with iron. These uses cannot be meaningfully compared. In comparing commodities, we can plug in an infinite number of combinations on either side of the equation. In order to set up an equation like this, however, commodities have to have some common property.... that common property is that both commodities are products of human labor.

On the topic of human labor, differences in labor types aren't really relevant in this labor theory. You can be a mechanic or a seamstress-- all labor types kinda get smoshed together into the concept of abstract labor, which allows us to have commodity exchange-value. Exchange-value is only a thing in the context of trade or exchange (a simple swap of books between friends is simply passing along use-values amongst each other). Commodities that take more labor to create have more value than ones that take less labor. However, this is not specific to the exact labor that went into the exact commodity you are examining -- we use a averaged quanity of labor time in our comparison.

Exchange-value and use-value are inherently contradictory. Use-value is only realized if a commodity is consumed (thus not exchanged). Exchange-value is only realized if it not consumed (and thus exchanged instead). You cannot use something AND exchange it. Production in a capitalist society is production meant for exchange, not use.

helpful secondary sources:

• libcom: "Use-value, exchange value, value"
• Hadas Thier: "Marxism in a Minute"
• The Easy Way: "KARL MARX/ USE-VALUE VS EXCHANGE- VALUE"
• Harry Cleaver (University of Texas at Austin)