Das Kapital

Section 3. The Value-Form or Exchange-Value (c) The General Form of Value (1) The changed character of the form of value. (2) The development of the relative and equivalent forms of value: their interdependence. (3) The transition from the general form of value to the money form. 4. money form

(1) The changed character of the form of value. After highlighting the previous two sub-sets Marx explains that these commodities now have a unified exchange-value, expressed through comparisons to one single kind of commodity. All commodities are now differentiated from their use-values and are equated to each other as exchange-values. The general value-form, which represents all products of labour, shows that it is the social resume of the world of commodities. In the world of commodities the character possessed by all labour of being human labour constitutes its specific social character. (2) The development of the relative and equivalent forms of value: their interdependence. Here Marx writes about the interrelatedness of the relative form and the equivalent form. In the equivalent form, real private labor "takes the form of its opposite, namely labour in its directly social form" He first explains that there is a correlation between them even though they are polar opposites. He states that we must also realize that the equivalent form is a representation and an offshoot of the relative form. "This equivalent has no relative form of value in common with other commodities; its value is rather, expressed relatively in the infinite series of all other physical commodities."[13] Things cannot be either completely relative or completely equivalent. There must be a combination to express the magnitude and universal equivalency. That form is the expanded relative form of value, which is a "specific relative form of value of the equivalent commodity."[13] (3) The transition from the general form of value to the money form. This is the transitional idea between taking the general form (the universal equivalent form for all general commodities) and turning it into the money form. Here Marx describes how there can be a commodity so universal to all commodities that it actually excludes itself to the point of no longer being an equivalent commodity but rather a representation of a commodity. Acceptance of its commodity exchange value is so universal that it can transition into a form of money, for example, gold. (4) The Money Form Here Marx illustrates the shift to "money form". Universal equivalent form or universal exchangeability has caused gold to take the place of linen in the socially accepted customs of exchange. Once it had reached a set value in the world of commodities gold became the money commodity. Money form is distinct from Sections A, B, and C. Now that gold has a relative value against a commodity (such as linen), it can attain price form: "The 'price form' of linen is therefore: 20 yards of linen = 2 ounces of gold, or, if 2 ounces of gold when coined are £2, 20 yards of linen = £2."[15] This illustrates the application of price form as a universal equivalent. Marx concludes this section by pointing out that "the simple commodity-form is therefore the germ of the money-form."[15] And, the simplified application of this idea is then illustrated as: x of commodity A = y of commodity B

Section 1. The Two Factors of the Commodity: 1. commodity 2. Use value 3. Exchange value, corn and iron 4. value 5. socially necessary labour 6. social use value

1. A "commodity" according to Marx is a use-value and also an exchange-value. Marx explains that, as a use-value, the commodity is something that meets a human want or need of any kind; it is a useful thing. 2. The use-value of the commodity is determined by how useful the commodity is. The actual use-value, however, is immeasurable. quality. He explains that use-value can only be determined "in use or consumption". 3. "exchange-value". He explains this as the quantity of other commodities that it will exchange for. He gives the example of corn and iron. No matter their relationship, there will always be an equation where a certain amount of corn will exchange for a certain amount of iron. All commodities can be exchanged for other quantities of commodities. QUANTITY. EV, not material, nothing to do with natural qualities, a measure made by humans. In order to determine the exchange-value, one must see the commodity being exchanged with other commodities. UV and EV one cannot be discussed without the other. EXPRESSION OF VALUE. 4. Value is what connects all commodities so that they can all be exchanged with each other. The value of a commodity is determined by its socially necessary labour time. Therefore, Marx explains, the value of a commodity does not stay constant as it advances or it varies in labour productivity. Object has to have use value to have value. Things can have use value without having value. Value itself cannot come from use-value because there is no way to compare the usefulness of an item; there are simply too many potential functions. 5. socially necessary labour defined as "the labour time required to produce any use-value under the conditions of production, normal for a given society and with the average degree of skill and intensity of labour prevalent in that society." which may occur for many reasons. 6. Social use value: when the commodity has use-value for others.

Section 2. The Dual Character of the Labour Embodied in Commodities 1. relationship between labor and value 2. linen vs. cloth (UV, useful labor) 3. why can values of different use values be compared? Why are one coat and 20 yards of linen equal?

1. He states if there is a change in the quantity of labor expended to produce an article, the value of the article will change. This is a direct correlation. 2. Marx gives as an example the value of linen versus cloth to explain the worth of each commodity in a capitalist society. Linen is hypothetically twice as valuable as thread because more socially necessary labor time was used to create it. Use-value of every commodity is produced by useful labor. 3. Different forms of labor create different kinds of use-values. The value of the different use-values created by different types of labor can be compared because both are expenditures of human labor. One coat and twenty yards of linen take the same amount of socially necessary labor time to make, so they have the same value. As we have expected in the production of the commodities, it lessen the capacity to create a high value of products.

Part Two: The Transformation of Money into Capital The intricacies of the general formula relate to the role of labor-power 1. what does labor power existing on the market depend on? 2. what does value represent? 3. What do workers need capitalists for? and vv?

1. Labor-power existing on the market depends on two fulfillments: the workers must offer it for temporary sale on the market and the workers must not possess the means to their own subsistence. As long as the labor-power is sold temporarily then the worker is not considered a slave. Worker dependence for a means of subsistence ensures a large working force, necessary for the production of capital. 2. The value of labor bought on the market as a commodity represents the definite amount of socially necessary labor objectified in the worker, or according to Marx, "the labor-time necessary for the production [of the worker]," which means the food, education, shelter, health, etc., required to create and maintain a worker. 3. The capitalists need workers to combine with their means of production to create a sell-able commodity, and workers need capitalists to provide a wage that pays for a means of subsistence. Within the capitalist mode of production it is custom to pay for labor-power only after it has been exercised over a period of time, fixed by a contract (i.e. the work week).

Part Two: The Transformation of Money into Capital 1. When does money become capital? 2. C-M-C and M-C-M.. .he prefers exchange, because you should not create surplus when trading fairly 3. Their results 4. what is the objective of M-C-M and what is M'? 5. Why is the creation of surplus-value rather peculiar for Marx? 6. Capital cannot be created from circulation because ... 7. double result

1. Money, as described by Marx, can only be transformed into capital through the circulation of commodities. Money originates not as capital, but only as means of exchange. Money becomes capital when it is used as a standard for exchange. 2. The circulation of commodities has two forms that make up the general formula: C-M-C and M-C-M. C-M-C represents the process of first selling a commodity for money (C-M) and then using that money to buy another commodity (M-C): "selling in order to buy". M-C-M describes transacting money for a commodity (M-C) and then selling the commodity for more capital, (C-M). 3; The largest distinction between the two forms appears through the result of each. During C-M-C, a commodity sold will be replaced by a commodity bought. In this form money only acts as a means of exchange. The transaction ends there, with the exchange of use-values and the money has, according to Marx, "been spent once and for all."The C-M-C form facilitates the exchange of one use-value for another. On the contrary, during M-C-M, money is essentially exchanged for more money. The person who invested money into a commodity sells it for money. The money returns to the initial starting place, so the money is not spent, as in the C-M-C form of exchange, but instead advanced. The only function of this process lies in its ability to valorize. By withdrawing more money from circulation than the amount put in, money can be reinvested in circulation creating repeated accumulation of monetary wealth—a never ending process. 4. Thus M-C-M' becomes the objective of M-C-M. M' stands for the money returned in the circulative process (M) plus the additional surplus value gained (M∆): M'=M+M∆. Capital can only be created once the process of M-C-M has been completed and money returns to the starting point to be re-entered into circulation. 5. The needs being satisfied would be the only gain. The creation of surplus-value then becomes rather peculiar for Marx, because commodities, in accordance with socially assigned necessary values, should not create surplus-value if traded fairly. Marx investigates the matter and concludes, "surplus-value cannot arise from circulation, and therefore that, for it to be formed, something must take place in the background which is not visible in the circulation itself." 6. Capital cannot be created from circulation because equal exchange of commodities creates no surplus value, and unequal exchange of commodities changes the distribution of wealth, but still does not produce surplus-value. Capital cannot be created without circulation either, because labor creates value within the general formula. Marx writes, "It must have its origin both in circulation and not in circulation." 7. A "double result" remains: The capitalist must buy commodities at their value, sell them at their value, and yet conclude the process with more money than at the beginning. The profit seemingly originates both inside and outside the general formula.

Section 3. The Value-Form or Exchange-Value (a) The Simple, Isolated, or Accidental Form of Value 1. When do we know a commodity's value? 2. value-relation. Linen and coat. 3. 2 forms of value: relative vs. equivalent form 4. Can you compare 20 yards of linen to 20 yards of linen?

1. We do not know commodities' value until we know how much human labor was put in it. Commodities are traded for one another after their values are decided socially. 2. Then there is value-relation, which lets us trade between different kind of commodities. Marx explains value without using money. Marx uses 20 yards of linen and a coat to show the value of each other (20 yards of linen = 1 coat, or 20 yards of linen are worth 1 coat). 3. The statement "20 yards of linen are worth 1 coat" label two forms of value. The first form, the relative form of value, is the commodity that comes first in the statement (the 20 yards of linen in the example). The second form, the equivalent form of value, is the commodity that comes second in the statement (the 1 coat in the example). 4. He adds that comparing 20 yards of linen to itself (20 yards of linen = 20 yards of linen, or 20 yards of linen are worth 20 yards of linen) is meaningless, because there is no expression of value. Linen is an object of utility whose value cannot be determined until it is compared to another commodity. Determining the value of a commodity depends on its position in the expression of comparative exchange value.

Section 4. The Fetishism of the Commodity and Its Secret 1. fetishism of commodity value... when does it occur? 2. Why does the commodity appear to have an exchange-value as if it was an intrinsecal characteristic of the commodity instead of a measurement of the homogenous human labor spent to do the commodity? 3. Once in exchange, what are commodities' values determined by?

1. fetishism, is a social product that originates in the fact that under a commodity based society the social labour, the social relations between producers and their mutual interdependence, solely manifest in the market, in the process of exchange: people initially create a deity to fulfill whatever desire or need they have in present circumstances, but then these products of the human brain appear as autonomous figures endowed with a life of their own and enter into a relations both with each other and with the human race Forgetting that commodities exchange values are not natural or god given... idea is human made. People forgot over time. Compares to manufacturing of religious belief Fetishism within capitalism occurs once labor has been socially divided and centrally coordinated, and the worker no longer owns the means of production. Thus, the value of a commodity seems to arise from a mystical property inherent to it, rather than from labor-time, the actual determinant of value. 2. Therefore, the value of the commodity is determined independently from private producers so it seems that it is the market which determines the value apparently based on a characteristic of the commodity;(A) it seems as if there are relations between commodities instead of relations between producers. Marx also explains that due to the historical circumstances of capitalist society, the values of commodities are usually studied by political economists in their most advanced form: money. These economists see the (B)value of the commodity as something metaphysically autonomous from the social labor that is the actual determinant of value. 3. Once in exchange, commodities' values are determined by the amount of socially useful labor-time put into them, because labor can be generalized.

Part Three: The Production of Absolute Surplus-Value 1. 2 sides of labor process 2. labor process 3. why is producing surplus value difficult? 4. where does surplus value originate? rate of surplus value= rate of exploitation 5. how does the worker transfer value to a good? 6. C=c+v 7. C' =c+v+s 8. 8. This flexibility in working hours leads to a class struggle between capitalist and worker. . how?

According to Marx, the production of absolute surplus value arises directly out of the labor process. 1. There are two sides to the labor process. On one side there is the buyer of labor power, or the capitalist. On the other side there is the worker. For the capitalist the worker possesses only one use-value, that of labor power. The capitalist buys from the worker his labor power, or his ability to do work, and in return the worker receives a wage, or a means of subsistence. 2. labor process Labor bound in object. Man's activity alters object of labor. product is use value. The labor that the worker has put forth to produce the object has been transferred to the object, thus giving it value. Under capitalism it is the capitalist who owns everything in the production process such as: the raw materials that the commodity is made of, the means of production, and the labor power (worker) itself. At the end of the labor process it is the capitalist who owns the product of their labor, not the workers who produced the commodities. Since the capitalist owns everything in the production process he is free to sell it for his own profit. The goal of the capitalist is to produce surplus value. 3. However, producing surplus value proves to be difficult. If all goods are purchased at their full price then profit cannot be made. Profit cannot be made simply through the purchase and sale of goods. Price changes on the open market will force other capitalists to adjust their prices in order to be more competitive, resulting in one price. 4. So, where does surplus value originate? Quite simply, the origin of surplus value arises from the worker. workers exchange their labor power in return for a means of subsistence. The secret of surplus value resides in the fact that there is a difference between the value of labor power and what that labor power can produce in a given amount of time. Labor power can produce more than its own value. This value is added because of the labor that is necessary to transform the raw material into a commodity. In order for commodities to be produced with surplus value two things must be true. Man must be a living commodity, a commodity that produces labor power, and it must be the nature of this labor power to produce more than its own value. The source of surplus value comes instead from Variable capital or labor power. 5. But, according to Marx, value only exists in use-values, so how does the worker transfer value to a good? It is because "Man himself, viewed merely as the physical existence of labor power, is a natural object, a thing, although a living, conscious thing, and labor is the physical manifestation of that power." 6. When capitalists begin production they initially spend their money on two inputs. These inputs can be represented with the capital advanced equation: C=c+v; where C is capital advanced, c is constant capital, and v is variable capital. Constant capital is nothing more than the means of production (factories, machinery, raw materials, etc.). Constant capital has a fixed value which can be transferred to the commodity, though the value added to the commodity can never be more than the value of constant capital itself. The source of surplus value comes instead from Variable capital or labor power. Labor power is the only commodity capable of producing more value than it possesses. The accumulation of capital occurs after the production process is completed. 7. The equation for the accumulation of capital is C' =c+v+s. Here C' is the value created during the production process. C' is equal to constant capital plus variable capital plus some extra amount of surplus value (s), which arises out of variable capital. To better understand the rate of surplus value one must understand that there are two parts to the working day. One part of the working day is the time necessary in order to produce the value of the workers labor power. The second part of the working day is surplus labor time, which produces no value for the laborer, but produces value for the capitalist. The rate of surplus value is a ratio of surplus labor time (s) to necessary labor time (v). The rate of surplus value (s/v) is also referred to by Marx as the rate of exploitation. Capitalists often maximize profits by manipulating the rate of surplus value, which can be done through the increase of surplus labor time. This method is referred to as the production of absolute surplus value. In this case capitalists merely increase the length of the working day. Though there are physical restrictions to the working day, such as general human needs, the working day is by no means fixed. This allows for great flexibility in the amount of hours worked per day. 8. This flexibility in working hours leads to a class struggle between capitalist and worker. . The capitalists argue that they have the right to extract all of the value from a day's labor, since that is what they bought. Similarly, the worker demands the full value of his own commodity. The worker needs to be able to renew his labor power so that it can be sold again anew. The capitalist sees working fewer hours as theft from capital, and the worker see working too many hours as theft from laborers. This class struggle can be seen throughout history, and eventually laws such as Factory Acts were put in place to limit the length of a working day and child labour. This forced capitalists to find a new way in which to exploit workers

Section 3. The Value-Form or Exchange-Value (b) The Total or Expanded Form of Value 1. what is the significance of comparing the value of many items to one coat?

Marx begins this section with an equation for the expanded form of value: "z commodity A = u commodity B or = v commodity C or = w commodity D or = x commodity E or = etc." where the lower case letters (z, u, v, w, and x) represent quantities of a commodity and upper case letters (A, B, C, D, and E) represent specific commodities so that an example of this could be: "20 yards of linen = 1 coat or = 10 lb. tea or = 40 lb. coffee or = 1 quarter of corn or = 2 ounces of gold or = ½ ton of iron or = etc."[9] Marx explains that with this example of the expanded form of value the linen "is now expressed in terms of innumerable other members of the world of commodities. 1. Every other commodity now becomes a mirror of linen's value." At this point, the particular use-value of linen becomes unimportant, but rather it is the magnitude of value (determined by socially necessary labor time) possessed in a quantity of linen which determines its exchange with other commodities.