ECO428H1 Lecture Notes - Lecture 10: Labour Power, Precious Metal, Wage Labour
Document Summary
Wage labor and capital cannot exist without each other but are mutually antagonistic. Resolution occurs when labor takes control of capital to abolish the antagonism. Labor is dynamic force of history since labor changes men"s circumstances. Utility is only the physical/objective use of a commodity. Is necessary for exchange but does not determine exchange value. Utility is qualitative while exchange value is quantitative. Exchange value determined by socially necessary labor time for production. Total labor time can be reduced to hours of average labor. Increase in socially necessary labor increases value of commodity. Increase in productivity decreases commodity value by decreasing socially necessary labor. Increase in productivity can be through technological change. Relative value (measured by labor time) of commodities determines relative exchange value of commodities. Money allows the separation of purchase and sale by providing store of value. Let"s seller sell commodity and later purchase another commodity from someone else.