Tuesday, November 29, 2011

Karl Marx. Capital Vol One Ch1 Sec3

The Form of Value or Exchange Value

Marx gives a step by step explanation from occasional bartering to a deliberate currency of value.

Money is explained to be a commodity just like coats, fabric, and corn. The only difference is that money holds a monopoly over value.

This might be made clearer by this example. Marx theorizes about a commodity, linen, that is used to establish worth of several other commodities. But in this case linen has a utility and a monetary role.

Linen could make sense if trade was infrequent, but it gets complicated when trade is common. People could wear money. Money really is a commodity where it is meant for one purpose, to hold value.

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