Some of my notes:
Commodity = product created out of human labour, having a value (something that satisfies a human need or want), which can be exchanged for money or other commodities. Dual nature of commodity:
use value = the value of a commodity expressed in its consumption for the sake of human use.
exchange value = arises or is seen when commodities are exchanged for other commodities or money.
Labour creates use values, and they are transformed into commodities when they are exchanged:
Abstract labour = stripped-down labour that, like the commodity of labour power it arose from, produces value (though it appears as exchange value) when labour-power is exchanged.
Concrete labour = produces use value.
Labour power = the ability or capacity of the worker to labour, and the capitalist’s ability to acquire it like just another commodity. It has a use value which can become a source of even more value when it is applied in production. The unique nature of labour power becomes apparent here.
Proletariat = the free seller of his labour power; he does not own the means of production. As such, he is only free to sell his labour power and is dependent on the bourgeois to pay him.
Bourgeois = owns the means of production and extracts surplus value from the proletariat.
Since labour power itself is a commodity, it has its own cost, that is, the labour time to reproduce it and the resources needed to keep the worker alive so he can sell his labour power.
Socially necessary labour time = the amount of time required to produce a commodity under normal conditions of production and skill.
Surplus value = value created out of unpaid labour.
Valorization is the production of surplus value by adding labour to it, which increases its value. The commodity that can be consumed at the same time as it is produced is labour power; labour power adds surplus value into the commodity. Labour power can be bought by capitalists.
The rate of extraction of surplus value = the amount of surplus labour time divided by the necessary time needed to reproduce labour power; thus, the subsistence of the worker also plays a role in his surplus exploitation.
Commodity fetishism is the appearance of social relations between people as relations between things; one aspect is the mistaken belief that exchange value is inherent to objects rather than merely an expression of value.
Exchange value may need an equivalent in order for it to be traded for other commodities in a capitalist economy; this equivalent is money. The relation between money and capital can be expressed as C–M–C (commodity exchanged for money, which is exchanged for commodities). The price is the monetary expression of the commodity’s value.
Capital = surplus value is converted into money when a commodity is exchanged; this becomes capital, as capital is value in motion. Capital valorizes itself. The relationship between money and capital can be expressed as M–C–M′ (money exchanged for acquiring commodities and more money after they are sold; this “more” part is surplus value), and when it is invested:
Constant capital = the cost/investment into things that only transfer a part of value into production but are needed for the acquisition of means of production, such as factories or instruments of production.
Variable capital = the money that has to be paid to the labourer. The investment (or extraction of surplus value) on this can be increased by increasing the productivity (relative surplus value) of labour or increasing working hours (absolute surplus value).
The capitalists employ various strategies to compete with each other in exploiting surplus value, such as simple co-operation, the division of labour, manufacture, and machinery and large-scale industry.
Total capital advanced = constant capital + variable capital.
Commodity = constant capital + variable capital + surplus value.
Wages = these are the price of labour power, but since labour and labour power are inseparable, wages appear as the price of labour itself. All forms of wages try to conceal the nature of exploitation of surplus value from the worker, from time-based wages, per piece produced, and the differences between national wages (arising out of production differences).
As we saw earlier:
Surplus value is transformed into capital; M–C–M′ causes accumulation of capital. This accumulation creates a reserve army of labour, as a constant supply of labour is needed for accumulation. By keeping many workers systemically unemployed, the capitalist sows desperation among them and creates a stable supply of labour at even lower wages.
Instruments of labour = tools required for performing labour and the means through which labour acts upon nature.
Objects of labour = things on which labour is exerted.
Means of labour = instruments of labour + auxiliary conditions.
Means of production = objects of labour (land, farmlands, forests) + means of labour (mines and factories that are conditions of production).
Relations of production = the relation between different people on the basis of their role in production or class.
Mode of production = an epoch that can be derived by analysing it as a combination of relations of production and productive forces.
Productive forces = the productive forces of society consist of labour-power, the means of production, and the level of technical and practical knowledge through which material production is carried out. Productive forces ultimately play a role in the transformation of the mode of production.
