Sociology 323 Economy & Society March 5 Marx Video: David Harvey What is the value of a commodity? Use Commodity Value Exchange Concrete Value Exchange (Socially Necessary Labour Time) Abstract Relative Exchange Money Equivalent Pick a commodity and determine its value according to Marx, Capital Volume 1 Useful Links: It's all about a PROCESS Capital is value in motion Capital is created via the circulation of money and commodities C-C C-M-C M-C-M M-C-M' (surplus value) M-M' The Expansion of Capital Becomes Limitless C-C exchanges are finite M-C-M' & M-M' exchanges are limitless Surplus Value Not derived from: Exchange of Equivalents Non-Exchange of Equivalents Not Effective Demand Circulation by itself does not create surplus value Labour Power Is the capacity to create value (via use-value) Appears as a commodity - Person's own property - Offered for sale on the market Is free in a double sense 1 People can dispose of their labour power as their own commodity 2 Free from owning any of the commodities that they produce Is where Surplus-Value comes from Value of Labour Power = The Value Necessary to Reproduce the Labourer Reproduction of Labour Subsistence Family (kids are future workers) Education Good Health Lifestyle Needs What commodities do you want/need? Useful Link: