Part 1: Commodities and Money

Chapter One: Commodities

Section 1: The two factors of a commodity: use value and value

The wealth of those societies in which the capitalist mode of production prevails, presents itself as "an immense accumulation of commodities," its unit being a single commodity. Our investigation must therefore begin with the analysis of a commodity.

A commodity is, in the first place, an object outside us a thing that by its properties satisfies human wants of some sort or another. The nature of such wants, whether, for instance, they spring from the stomach or from fancy, makes no difference.

Every useful thing may be looked at from the two points of view of quality and quantity. It is an assemblage of many properties. and may therefore be of use in various ways. To discover the various use of things is the work of history.

The utility of a thing makes it a use-value. But this utility is not a thing of air. Being limited by the physical properties of the commodity, it has no existence apart from that commodity. A commodity, such as iron, corn, or a diamond, is therefore, so far as it is a material thing, a use-value, something useful.

Use-values become a reality only by use or consumption: they also constitute the substance of all wealth, whatever may be the social form of that wealth. They are, in addition, the material depositories of exchange value. Exchange value, at first sight, presents itself as a quantitative relation, as the proportion in which values in use of one sort are exchanged for those of another sort, a relation constantly changing with time and place.

Let us take two commodities, e.g., corn and iron. The proportions in which they are exchangeable, whatever those proportions may be, can always be represented by an equation in which a given quantity of corn is equated to some quantity of iron. What does this equation tell us? It tells us that in two different things there exists in equal quantities something common to both. The two things must therefore be equal to a third, which in itself is neither the one nor the other. Each of them, so far as it is exchange value, must therefore be reducible to this third.

This common "something" cannot be either a geometrical, a chemical, or any other natural property of commodities. Such properties claim our attention only in so far as they affect the utility of those commodities, make them use-values. But the exchange of commodities is evidently an act characterized by a total abstraction from use-value.

If then we leave out of consideration the use-value of commodities, they have only one common property left, that of being products of labour. But even the product of labor itself has undergone a change in our hands. We see in it no longer a table, a house, yarn, or any other useful thing. Its existence as a material thing is put out of sight. Neither can it any longer be regarded as the product of the labour of the joiner, the mason, the spinner, or of any other definite kind of productive labor. Along with the useful qualities of the products themselves, we put out of sight both the useful character of the various kinds of labor embodied in them, and the concrete forms of that labor; there is nothing left but what is common to them all; all are reduced to one and the same sort of labor, human labor in the abstract.

It consists of the same unsubstantial reality in each, a mere congelation of homogeneous human labor, of labour-power expended without regard to the mode of its expenditure. When looked at as crystals of this social substance, common to them all, they are - values.

A use-value, or useful article, therefore, has value only because human labour in the abstract has been embodied or materialized in it. How, then, is the magnitude of this value to be measured? Plainly, by the quantity of the value-creating substance, the labor, contained in the article.

The quantity of labor, however, is measured by its duration, and labor-time in its turn finds its standard in weeks, days, and hours. The total labor-power of society, which is embodied in the sum total of the values of all commodities produced by that society, counts here as one homogeneous mass of human labor-power, composed though it be of innumerable individual units. Each of these units is the same as any other, so far as it has the character of the average labour-power of society, and takes effect as such; that is, so far as it requires for producing a commodity, no more time than is needed on an average, no more than is socially necessary. The labour-time socially necessary is that required to produce an article under the normal conditions of production, and with the average degree of skill and intensity prevalent at the time. The introduction of power looms into England probably reduced by one half the labour required to weave a given quantity of yarn into cloth. The handloom weavers, as a matter of fact, continued to require the same time as before; but for all that, the product of one hour of their labour represented after the change only half an hour's social labour, and consequently fell to one half its former value. We see then that that which determines the magnitude of the value of any article is the amount of labour socially necessary, or the labor-time socially necessary for its production. Each individual commodity, in this connection, is to be considered as an average sample of its class.

The value of one commodity is to the value of any other, as the labour-time necessary for the production of the one is to that necessary for the production of the other. In general, the greater the productiveness of labour, the less is the labour-time required for the production of an article, the less is the amount of labour crystallized in that article, and the less is its value; and vice versa, the less the productiveness of labour, the greater is the labour-time required for the production of an article, and thegreater is its value. The value of a commodity, therefore, varies directly as the quantity, and inversely as the productiveness, of the labor incorporated in it.

A thing can be a use-value, without having value. This is the case whenever its utility to man is not due to labour. Such are air, virgin soil, natural meadows, etc. A thing can be useful, and the product of human labor, without being a commodity. Whoever directly satisfies his wants with the produce of his own labour, creates, indeed, use-values, but not commodities. In order to produce the latter, he must not only produce use-values, but use-values for others, social use-values. Lastly, nothing can have value, without being an object of utility. If the thing is useless, so is the labour contained in it; the labour does not count as labour, and therefore creates no value.

Section 2: The two-fold character of the labour embodied in commodities

Let us take two commodities such as a coat and 10 yards of linen, and let the former be double the value of the latter, so that, if 10 yards of linen = W, the coat = 2W.

The coat is a use-value that satisfies a particular want. Its existence is the result of a special sort of productive activity, the nature of which is determined by its aim, mode of operation, subject, means, and result. The labour, whose utility is thus represented by the value in use of its product, or which manifests itself by making its product a use-value, we call useful labour. In this connection we consider only its useful effect.

As the coat and the linen are two qualitatively different use-values, so also are the two forms of labour that produce them, tailoring and weaving. To all the different varieties of values in use there correspond as many different kinds of useful labour, classified according to the order, genus, species, and variety to which they belong in the social division of labour. This division of labour is a necessary condition for the production of commodities but it does not follow conversely, that the production of commodities is a necessary condition for the division of labour.

In a commodity, the produce of which in general takes the form of commodities, ie., in a community of commodity producers, this qualitative difference between the useful forms of labor that are carried on independently by individual producers, each on their own account, develops into a complex system, a social division of labor.

The use-values, coat, linen, &c., ie., the bodies of commodities, are combinations of two elements - matter and labor. Man can work only as Nature does, that is by changing the form of matter. Nay more, in this work of changing the form he is constantly helped by natural forces. We see, then, that labour is not the only source of material wealth, of use-values produced by labour. As William Petty puts it, labor is its father and the earth its mother.

Let us now pass from the commodity considered as a use-value to the value of commodities. By our assumption, the coat is worth twice as much as the linen. But this is a mere quantitative difference, which for the present does not concern us. We bear in mind, however, that if the value of the coat is double that of 10 yards. of linen, 20 yards of linen must have the same value as one coat. So far as they are values, the coat and the linen are things of a like substance, objective expressions of essentially identical labor. But tailoring and weaving are, qualitatively, different kinds of labour. They are, however, each a productive expenditure of human brains, nerves, and muscles, and in this sense are human labour. They are but two different modes of expending human labor-power. But the value of a commodity represents human labor in the abstract, the expenditure of human labor in general.

Simple average labour, it is true, varies in character in different countries and at different times, but in a particular society it is given. Skilled labour counts only as simple labour intensified, or rather as multiplied simple labor, a given quantity of skilled being considered equal to a greater quantity of simple labor.

Just as, therefore, in viewing the coat and linen as values, we abstract from their different use-values, so it is with the labour represented by those values: we disregard the difference between its useful forms, weaving and tailoring. As the use-values, coat and linen, are combinations of special productive activities with cloth and yarn, while the values, coat and linen, are, on the other hand, mere homogeneous congelations of undifferentiated labour, so the labour embodied in these latter values does not count by virtue of its productive relation to cloth and yarn, but only as being expenditure of human labour-power.

Coats and linen, however, are not merely values, but values of definite magnitude, and according to our assumption, the coat is worth twice as much as the ten yards of linen. Whence this difference in their values? It is owing to the fact that the linen contains only half as much labor as the coat, and consequently, that in the production of the latter, labour-power must have been expended during twice the time necessary for the production of the former.

An increase in the quantity of use-values is an increase of material wealth. With two coats two men can be clothed, with one coat only one man. Nevertheless, an increased quantity of material wealth may correspond to a simultaneous fall in the magnitude of its value.

This antagonistic movement has its origin in the twofold character of labour. On the one hand all labour is, speaking physiologically, an expenditure of human labour-power, and in its character of identical abstract human labour, it creates and forms the value of commodities. On the other hand, all labour is the expenditure of human labour-power in a special form and with a definite aim, and in this, its character of concrete useful labour, it produces use-values.

I was the first to point out and to examine critically this twofold nature of the labour contained in commodities. As this point is the pivot on which a clear comprehension of political economy turns, we must go more into detail.

Section 3: The form of value or exchange value

Commodities come into the world in the shape of use-values, articles, or goods. This is their plain, homely, bodily form. They are, however, commodities, only because they are something twofold, both objects of utility, and, at the same time, depositories of value. They manifest themselves therefore as commodities, or have the form of commodities, only in so far as they have two forms, a physical or natural form, and a value form.

If we say that, as values, commodities are mere congelations of human labour, we reduce them by our analysis, it is true, to the abstraction, value; but we ascribe to this value no form apart from their bodily form. It is otherwise in the value relation of one commodity to another. Here, the one stands forth in its character of value by reason of its relation to the other.

The simplest value relation is evidently that of one commodity to some one other commodity of a different kind. Hence the relation between the values of two commodities supplies us with the simplest expression of the value of a single commodity.

1. ELEMENTARY OR ACCIDENTAL FORM OF VALUE
   1. The two poles of the expression of value - the relative form and the equivalent form

      The whole mystery of the form of value lies hidden in this elementary form. Its analysis, therefore, is our real difficulty. Here two different kinds of commodities (in our example the linen and the coat), evidently play two different parts. The linen expresses its value in the coat; the coat serves as the material in which that value is expressed. The former plays an active, the latter a passive, part. The value of the linen is represented as relative value, or appears in relative form. The coat officiates as equivalent, or appears in equivalent form.

      The relative form and the equivalent form are two intimately connected, mutually dependent and inseparable elements of the expression of value; but, at the same time, are mutually exclusive, antagonistic extremes - i.e., poles of the same expression. They are allotted respectively to the two different commodities brought into relation by that expression.

      Whether, then, a commodity assumes the relative form, or the opposite equivalent form, depends entirely upon its accidental position in the expression of value - that is, upon whether it is the commodity whose value is being expressed or the commodity in which value is being expressed.

   2. The relative form of value
      1. The nature and import of this form

         When occupying the position of equivalent in the equation of value, the coat ranks qualitatively as the equal of the linen, as something of the same kind, because it is value. In this position it is a thing in which we see nothing but value, or whose palpable bodily form represents value. In the production of the coat, human labor-power, in the shape of tailoring, must have been actually expended Human labor is therefore accumulated in it. In this aspect the coat is a despository of value, but though worn to a thread, it does not let this fact show through. And as equivalent of the linen in the value equation, it exists under this aspect alone, counts therefore as embodied value, as a body that is value.

         Hence, in the value equation in which the coat is the equivalent of the linen, the coat officiates as the form of value. The value of the commodity linen is expressed by the bodily form of the commodity coat, the value of one by the use-value of the other.

         All that our analysis of the value of commodities has already told us, is told us by the linen itself, so soon as it comes into communication with another commodity, the coat. Only it betrays its thoughts in that language with which alone it is familiar, the language of commodities. In order to tell us that its own value is created by labour in its abstract character of human labor, it says that the coat, in so far as it is worth as much as the linen, and therefore is value, consists of the same labour as the linen. In order to inform us that its sublime reality as value is not the same as its buckram body, it says that value has the appearance o£ a coat, and consequently that so far as the linen is value, it and the coat are as like as two peas.

      2. Quantitative determination of relative value

         The equation, 20 yards of linen = 1 coat, or 20 yards of linen are worth one coat, implies that the same quantity of value-substance (congealed labour) is embodied in both; that the two commodities have each cost the same amount of labour or the same quantity of labour time. But the labour time necessary for the production of 20 yards of linen or 1 coat varies with every change in the productiveness of weaving or tailoring. We have now to consider the influence of such changes on the quantitative aspect of the relative expression of value:

         1. The value of the linen may vary, that of the coat remaining constant.
         2. The value of the linen may remain constant, while the value of the coat varies.
         3. The quantities of labour time respectively necessary for the production of the linen and the coat may vary simultaneously in the same direction and in the same proportion.
         4. The labour time respectively necessary for the production of the linen and the coat, and therefore the value of these commodities may simultaneously vary in the same direction, but at unequal rates, or in opposite directions, or in other ways. The relative value of a commodity may vary, although its value remains constant. Its relative value may remain constant, although its value varies; finally, simultaneous variations in the magnitude of value and in that of its relative expression by no means necessarily correspond in amount.
   3. The equivalent form of value

      When we say that a commodity is in the equivalent form, we express the fact that it is directly exchangeable with other commodities.

      The first peculiarity that strikes us, in considering the form of the equivalent, is this: use-value becomes the form of manifestation, the phenomenal form of its opposite, value. The bodily form of the commodity becomes its value form. The second peculiarity of the equivalent form is, that concrete labor becomes the form under which its opposite, abstract human labor, manifests itself.

   4. The elementary form of value considered as a whole

      The opposition or contrast existing internally in each commodity between use-value and value, is, therefore, made evident externally by two commodities being placed in such relation to each other, that the commodity whose value it is sought to express, figures directly as a mere use-value, while the commodity in which that value is to be expressed, figures directly as mere exchange value. Hence the elementary form of value of a commodity is the elementary form in which the contrast contained in that commodity, between use-value and value, becomes apparent.

      Nevertheless, the elementary form of value passes by an easy transition into a more complete form. Therefore, according as it is placed in relation with one or the other, we get for one and the same commodity, different elementary expressions of value. The number of such possible expressions is limited only by the number of the different kinds of commodities distinct from it. The isolated expression of the value of a commodity is therefore convertible into a series, prolonged to any length, of the different elementary expressions of that value.

2. TOTAL OR EXPANDED FORM OF VALUE
   1. The expanded relative form of value

      The linen, by virtue of the form of its value, now stands in a social relation, no longer with only one other kind of commodity, but with the whole world of commodities. As a commodity, it is a citizen of that world. At the same time, the interminable series of value equations implies, that as regards the value of a commodity, it is a matter of indifference under what particular form, or kind, of use-value it appears.

      In the first form, 20 yds. of linen = 1 coat, it might for ought that otherwise appears be pure accident, that these two commodities are exchangeable in definite quantities. In the second form, on the contrary, we perceive at once the background that determines, and is essentially different from, this accidental appearance.

      But in the first place, the relative expression of value is incomplete because the series representing it is interminable. In the second place, it is a many-colored mosaic of disparate and independent expressions of value. And lastly, if, as must be the case, the relative value of each commodity in turn, becomes expressed in this expanded form, we get for each of them a relative-value form, different in every case, and consisting of an interminable series of expressions of value.

   2. The defects of the total or expanded form of value

      The defects of the expanded relative-value form are reflected in the corresponding equivalent form. The accidental relation between two individual commodity owners disappears. It becomes plain, that it is not the exchange of commodities which regulates the magnitude of their value; but, on the contrary, that it is the magnitude of their value which controls their exchange proportions.

3. THE GENERAL FORM OF VALUE
   1. The altered character of the form of value

      When a person exchanges his linen for many other commodities, and thus expresses its value in a series of other commodities, it necessarily follows, that the various owners of the latter exchange them for the linen, and consequently express the value of their various commodities in one and the same third commodity, the linen. We get a general form of value: 1 coat = 20 yards of linen, 10 lbs. of tea = 20 yards of linen, 40 lbs of coffee = 20 yards of linen, 1 quarter of corn = 20 yards of linen, 2 ounces of gold = 20 yards of linen, t/z a ton of iron = 20 yards of linen, x com. A, = 20 yards of linen, etc. All commodities now express their value (1) in an elementary form, because in a single commodity; (2) with unity, because in one and the same commodity.

      The value of every commodity is now, by being equated to linen, not only differentiated from its own use-value, but from all other use-values generally, and is, by that very fact, expressed as that which is common to all commodities. By this form, commodities are, for the first time, effectively brought into relation with one another as values, or made to appear as exchange values.

      The general value form, which represents all products of labor as mere congelations of undifferentiated human labor, shows by its very structure that it is the social resume of the world of commodities.

      That form consequently makes it indisputably evident that in the world of commodities the character possessed by all labor of being human labor constitutes its specific social character.

   2. The interdependent development of the relative form of value and of the equivalent form

      The degree of development of the relative form of value corresponds to that of the equivalent form. But we must bear in mind that the development of the latter is only the expression and result of the development of the former. The primary relative form of value of one commodity converts some other commodity into an isolated equivalent.

      The expanded form of relative value, which is the expression of the value of one commodity in terms of all other commodities, endows those other commodities with the character of particular equivalents differing in kind. And lastly, a particular kind of commodity acquires the character of universal equivalent, because all other commodities make it the material in which they uniformly express their value.

      A single commodity, the linen, appears therefore to have acquired the character of direct exchangeability with every other commodity because, and in so far as, this character is denied to every other commodity. The commodity that figures as universal equivalent, is, on the other hand, excluded from the relative-value form.

   3. Transition from the general form of value to the money form

      The particular commodity, with whose bodily form the equivalent form is thus socially identified, now becomes the money commodity, or serves as money. It becomes the special social function of that commodity, and consequently its social monopoly, to play within the world of commodities the part of the universal equivalent.

      This foremost place has been attained by one in particular - namely, gold.

4. THE MONEY FORM

   We get the money form: 20 yards of linen = 2 ounces of gold, 1 coat = 2 ounces of gold, 10 lb. of tea = 2 ounces of gold, 40 lb. of coffee = 2 ounces of gold, 1 qr. of corn = 2 ounces of gold, 1/z a ton of iron = 2 ounces of gold, x commodity A = 2 ounces of gold.

   Gold is now money with reference to all other commodities only because it was previously, with reference to them, a simple commodity. Like all other commodities, it was also capable of serving as an equivalent, either as simple equivalent in isolated exchanges, or as particular equivalent by the side of others. Gradually it began to serve, within varying limits, as universal equivalent.

   So soon as it monopolizes this position in the expression of value for the world of commodities, it becomes the money commodity, and then, and not till then, does the general form of value become changed into the money form.

Section 4: The fetishism of commodities and the secret thereof

A commodity appears, at first sight, a very trivial thing, and easily understood. Its analysis shows that it is, in reality, a very queer thing, abounding in metaphysical subtleties and theological niceties. So far as it is a value in use, there is nothing mysterious about it.

It is as clear as noonday, that man, by his industry, changes the forms of the materials furnished by nature, in such a way as to make them useful to him. The form of wood, for instance, is altered, by making a table out of it. Yet, for all that the table continues to be that common, everyday thing, wood.

But, so soon as it steps forth as a commodity, it is changed into something transcendent. It not only stands with its feet on the ground, but, in relation to all other commodities, it stands on its head, and evolves out of its wooden brain grotesque ideas, far more wonderful than "table-turning" ever was.

The mystical character of commodities does not originate in their use-value. Just as little does it proceed from the nature of the determining factors of value. Whence, then, arises the enigmatical character of the product of labor, so soon as it assumes the form of commodities? Clearly from this form itself.

A commodity is therefore a mysterious thing, simply because in it the social character of men's labor appears to them as an objective character stamped upon the product of that labor; because the relation of the producers to the sum total of their own labor is presented to them as a social relation, existing not between themselves, but between the products of their labor. This is the reason why the products of labor become commodities, social things whose qualities are at the same time perceptible and imperceptible by the senses. There it is a definite social relation between men, that assumes, in their eyes, the fantastic form of a relation between things. In order, therefore, to find an analogy, we must have recourse to the mist-enveloped regions of the religious world. In that world the productions o£ the human brain appear as independent beings endowed with life, and entering into relation both with one another and the human race. So it is in the world of commodities with the products of men's hands. This I call the Fetishism which attaches itself to the products of labor, so soon as they are produced as commodities, and which is therefore inseparable from the production of commodities.

This fetishism of commodities has its origin in the peculiar social character of the labor that produces them. As a general rule, articles of utility become commodities, only because they are products of the labor of private individuals or groups of individuals who carry on their work independently of each other. The sum total of the labor of all these private individuals forms the aggregate labor of society. Since the producers do not come into social contact with each other until they exchange their products, the specific social character of each producer's labor does not show itself except in the act of exchange. In other words, the labor of the individual asserts itself as a part of the labor of society, only by means of the relations which the act of exchange establishes directly between the products, and indirectly, through them, between the producers. To the latter, therefore, the relations connecting the labor of one individual with that of the rest appear, not as direct social relations between individuals at work, but as what they really are, material relations between persons and social relations between things.

It is only by being exchanged that the products of labor acquire, as values, one uniform social status, distinct from their varied forms of existence as objects of utility. From this moment the labor of the individual producer acquires socially a twofold character. On the one hand, it must, as a definite useful kind of labor, satisfy a definite social want, and thus hold its place as part and parcel of the collective labor of all, as a branch of a social division of labor that has sprung up spontaneously. On the other hand, it can satisfy the manifold wants of the individual producer himself, only in so far as the mutual exchangeability of all kinds of useful private labor is an established social fact, and therefore the private useful labor of each producer ranks on an equality with that of all others.

The twofold social character of the labor of the individual appears to him, when reflected in his brain, only under those forms which are impressed upon that labor in everyday practice by the exchange of products. In this way, the character that his own labor possesses of being socially useful takes the form of the condition, that the product must be not only useful, but useful for others, and the social character that his particular labor has of being the equal of all other particular kinds of labor, takes the form that all the physically different articles that are the products of labor, have one common quality, viz., that of having value.

Hence, when we bring the products of our labor into relation with each other as values, it is not because we see in these articles the material receptacles of homogeneous human labor. Quite the contrary; whenever, by an exchange, we equate as values our different products, by that very act, we also equate, as human labor, the different kinds of labor expended upon them. We are not aware of this, nevertheless we do it. Value, therefore, does not stalk about with a label describing what it is. It is value, rather, that converts every product into a social hieroglyphic. Later on, we try to decipher the hieroglyphic, to get behind the secret of our own social products; for to stamp an object of utility as a value, is just as much a social product as language. The recent scientific discovery, that the products of labor, so far as they are values, are but material expressions of the human labor spent in their production, marks, indeed, an epoch in the history of the development of the human race, but, by no means, dissipates the mist through which the social character of labor appears to us to be an objective character of the products themselves.

When I state that coats or boots stand in a relation to linen, because it is the universal incarnation of abstract human labor, the absurdity of the statement is self-evident. Nevertheless, when the producers of coats and boots compare those articles with linen, or, what is the same thing with gold or silver, as the universal equivalent, they express the relation between their own private labor and the collective labor of society in the same absurd form. The categories of bourgeois economy consist of such like forms. They are forms of thought expressing with social validity the conditions and relations of a definite, historically determined mode of production, viz., the production of commodities. The whole mystery of commodities, all the magic and necromancy that surrounds the products of labor as long as they take the form of commodities, vanishes therefore, so soon as we come to other forms of production.

Could commodities themselves speak, they would say: Our use-value may be a thing that interests men. It is no part of us as objects. What, however, does belong to us as objects, is our value. Our natural intercourse as commodities proves it. In the eyes of each other we are nothing but exchange values. It is a peculiar circumstance that the use-value of objects is realized without exchange, by means of a direct relation between the objects and man, while, on the other hand, their value is realized only by exchange, that is, by means of a social process. Who fails here to call to mind our good friend, Dogberry, who informs neighbor Seacoal, that, "To be a well-favored man is the gift of fortune; but reading and writing comes by nature"?