Karl Marx. Capital Volume One Ch1 Sec1

The Two Factors of a Commodity: Use-Value and Value

If Marx wants you to know one thing about capitalism, it is that it is all about commodities. The opening of the book establishes what Marx considers a COMMODITY to be.

Basic tenets of COMMODITIES:

1. It has to be human made and not taken from nature.
2. It has to be produced to be exchanged and not to be given directly to consume.

When considering COMMODITIES Marx points to two important values:

1. USE VALUE - A value to acknowledge the quantity of the commodity. It is some value linked to a physical trait either the amount of units, weight, the units of length.
2. EXCHANGE VALUE - a value used to arbitrate the ratio between the USE VALUE of two different commodities. It is not linked to any physical trait. It is just a ratio of USE VALUES.

LABOR is calculated very much like USE VALUE in that it is a number based on a trait. This is the duration of LABOR needed to produce an amount of the commodity. Marx states that when calculating LABOR in a capitalist system, it is only important to consider LABOR of the entire system. This means the total amount of LABOR used to make all the commodities exchanged.

Marx puts much emphasis on LABOR being the driving force for USE VALUE and EXCHANGE VALUE. The reason being that the more of a commodity you can make the hire the USE VALUE (remember the USE VALUE is just measurement of how much of a commodity you have). When the USE VALUE changes it effects the EXCHANGE VALUE because when you make more of something it generally decreases in value making the ratio of its value to other commodities different.

LABOR is also fluctuates in productivity for various reasons that either boost or deflate. This in turn fluctuates the EXCHANGE VALUE as commodities' USE VALUE will be going up and down.