Overview
This section summarizes the first part of Karl Marx's Capital Volume I, focusing on the nature of commodities, value, labour, and the emergence of money and capital. It introduces the foundational concepts that underpin the capitalist mode of production.
Commodities, Value, and Labour
- Commodities have two aspects: use-value (their utility) and exchange-value (their worth in trade).
- The value of a commodity is determined by the socially necessary labour time required for its production.
- Labour has a dual character:
- Concrete labour creates use-values (specific useful things).
- Abstract labour creates value (the general social substance of commodities).
- Exchange-value is the form in which value appears, expressing the social relation between commodities.
Money and Capital
- Money arises as the universal equivalent, enabling the exchange of commodities.
- The value of commodities is expressed in money, which serves as a measure of value, a medium of circulation, and a store of value.
- The transformation of money into capital begins when money is used to purchase commodities (including labour-power) with the aim of generating more money (the formula M–C–M').
Surplus-Value and Exploitation
- Surplus-value is the value produced by workers beyond what is necessary to reproduce their own labour-power; this surplus is appropriated by capitalists.
- The capitalist pays for labour-power at its value, but the use of that labour-power in production creates more value than the worker receives in wages.
- The distinction between use-value and exchange-value, and between concrete and abstract labour, is central to understanding how surplus-value is generated.
Working Day and Wages
- The working day is divided into necessary labour (to reproduce the worker’s wage) and surplus labour (which produces surplus-value for the capitalist).
- Wages can be paid by time or by piece, but both forms obscure the reality of exploitation and unpaid labour.
- The difference between the value of labour-power and the price of labour helps explain variations in wages and the misconception that wages represent the full value created by workers.
Key Terms & Definitions
- Commodity: An item produced for exchange, possessing both use-value and exchange-value.
- Value: The socially necessary labour embodied in a commodity.
- Surplus-Value: The value created by workers beyond what is returned to them as wages; the source of capitalist profit.
- Labour-Power: The capacity to work, which is sold as a commodity under capitalism.
- Abstract Labour: Labour considered as a general social activity, creating value.
- Concrete Labour: Specific, useful work that creates use-values.
Action Items / Next Steps
- Read the assigned chapters in Capital Volume I for a deeper understanding of these foundational concepts.
- Review the definitions and relationships among commodity, value, labour, and surplus-value.
- Reflect on how the dual character of labour and the role of money set the stage for the development of capital.