Commodity (Marxism)

In classical political economy and especially Karl Marx's critique of political economy, a commodity is any good or service ("products" or "activities") produced by human labour and offered as a product for general sale on the market. Some other priced goods are also treated as commodities, e.g. human labor-power, works of art and natural resources, even though they may not be produced specifically for the market, or be non-reproducible goods. This problem was extensively debated by Adam Smith, David Ricardo, and Karl Rodbertus-Jagetzow, among others. Value and price are not equivalent terms in economics, and theorising the specific relationship of value to market price has been a challenge for both liberal and Marxist economists.

In Marx's theory, a commodity is something that is bought and sold, or exchanged in a relationship of trade.

Price is then the monetary expression of exchange-value, but exchange value could also be expressed as a direct trading ratio between two commodities without using money, and goods could be priced using different valuations or criteria.

According to the labor theory of value, product-values in an open market are regulated by the average socially necessary labour time required to produce them, and price relativities of products are ultimately governed by the law of value.

"We are doing everything possible to give work this new status as a social duty and to link it on the one hand with the development of technology, which will create the conditions for greater freedom, and on the other hand with voluntary work based on the Marxist appreciation that one truly reaches a full human condition when no longer compelled to produce by the physical necessity to sell oneself as a commodity."

— Che Guevara

Commodity-trade, Marx argues, historically begins at the boundaries of separate economic communities based otherwise on a non-commercial form of production. Thus, producers trade in those goods of which those producers, have episodic or permanent surpluses to their own requirements, and they aim to obtain different goods with an equal value in return.

Marx refers to this as "simple exchange" which implies what Frederick Engels calls "simple commodity production". At first, goods may not even be intentionally produced for the explicit purpose of exchanging them, but as a regular market for goods develops and a cash economy grows, this becomes more and more the case, and production increasingly becomes integrated in commodity trade. "The product becomes a commodity" and "exchange value of the commodity acquires a separate existence alongside the commodity"