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"Marx's 3 Forms of Market Exchange" with Richard D. Wolff
Distinguishing characteristics of market exchange include:
- In the exchange of goods on the capitalist market, exchange-value rather than use-value dominates. As such, in a market setting, values are transformed into prices.
- Market exchange takes place where the money-form of social relations between things and the material relations between things collapse together.
- Marx's labour theory of value is arguably best seen as a "law of grand averages", an overall generalisation about economic exchange based on socially necessary labour time.
- To Marx, capitalism is tied to the alienation of workers from the means of production: they no longer own what they need to make a living and so must sell their labour in the "free" market to earn money to buy their subsistence needs.
Marx classifies several types of market exchanges:
|M-C||An act of purchase: a sum of money purchases a commodity, or "money is changed into a commodity."|
|C-M||An act of sale: a commodity is sold for money.|
|M-M'||A sum of money is lent out at interest to obtain more money, or, one currency or financial claim is traded for another. "Money begets money."|
|C-C'||Countertrade, in which a commodity trades directly for a different commodity, with money possibly being used as an accounting referent, for example, food for oil, or weapons for diamonds.|
|C-M-C'||A commodity is sold for money, which buys another, different commodity with an equal or higher value. Money is used as a medium of circulation.|
|M-C-M'||Money is used to buy a commodity which is resold to obtain a larger sum of money.|
|M-C...P...-C'-M'||Money buys means of production and labour power used in production to create a new commodity, which is sold for more money than the original outlay. "The circular course of capital."|