1. Capital, Chapter Two: The Process of Exchange

2. From Things to Social Processes Marx’s Analysis of Fetishism implies we must locate commodities within social relations Marx’s Analysis of Fetishism implies we must locate commodities within social relations Step 1: Commodities have “owners” Step 1: Commodities have “owners” i.e., assume private property i.e., assume private property Step 2: Owners have separate wills Step 2: Owners have separate wills Step 3: Owners do the exchanging Step 3: Owners do the exchanging

3. Conditions for Exchange Private Property Private Property Commodities have use/exchange value? Commodities have use/exchange value? Commodities must have use-value to be exchanged, BUT Commodities must have use-value to be exchanged, BUT Commodities must be realized as exchange values for use values to be realized Commodities must be realized as exchange values for use values to be realized Solution: Exchange process + consumption Solution: Exchange process + consumption

4. Prime Example: Labor Market Workers have selves & independent wills Workers have selves & independent wills Capitalists have capital & independent wills Capitalists have capital & independent wills Workers sell their ability to work to capitalists for wages Workers sell their ability to work to capitalists for wages Capitalists buy labor in exchange for part of their capital (money available for investment) Capitalists buy labor in exchange for part of their capital (money available for investment) Capitalists consume (realize the use value of) workers’ ability to work Capitalists consume (realize the use value of) workers’ ability to work

5. 2nd Example: Things & Services Workers have selves & wages Workers have selves & wages Capitalists own commodities produced by workers and offer them for sale Capitalists own commodities produced by workers and offer them for sale Workers exchange wages for what they have previously produced Workers exchange wages for what they have previously produced Workers consume (realize the use value) of the things that they buy Workers consume (realize the use value) of the things that they buy

6. Sketch of Money in Exchange Exchange of surplus begins at margins Exchange of surplus begins at margins Things come to be produced for exchange Things come to be produced for exchange Repetition produces known values Repetition produces known values Universal equivalences come & go Universal equivalences come & go Money = settling of universal equivalence Money = settling of universal equivalence Divisible, uniform, durable Divisible, uniform, durable gold, silver, copper gold, silver, copper

7. Methodological Issue Applicability of Chapters 1 & 2 to whole history of exchange? Applicability of Chapters 1 & 2 to whole history of exchange? Categories are those of fully developed money form Categories are those of fully developed money form Fully developed money form = world which is ever more fully commodified & money is omnipresent Fully developed money form = world which is ever more fully commodified & money is omnipresent

8. --END--