1. World problems
  2. Conflicting roles of commodities in capitalism

Conflicting roles of commodities in capitalism

Nature

Commodities have two values under the capitalist system: their real worth as necessities; and their exchange value. Because the profit motivation of the capitalist system artificially creates excess demand for goods which may not be necessities, scarcity of real necessities and glut of highly profitable goods (because they are produced in excess when they are not needed) may result. Therefore the exchange value of necessities may become artificially high. Prestige items of low necessity but which are profitable to produce may also have an artificially high exchange value. This situation is aggravated by the fact that commodities may be bought and sold for speculative profit. In this case, they are rendered out of reach to the mass of people who need them and become the prerogative of the non-productive propertied class. The use of necessities for speculation creates inflation and the economic and social gap between the propertied class and the proletariat increases.

Broader

Capitalism
Presentable

Aggravates

Shortage
Excellent

Aggravated by

Related

Strategy

Value

Conflict
Yet to rate

SDG

Sustainable Development Goal #12: Responsible Consumption and ProductionSustainable Development Goal #17: Partnerships to achieve the Goal

Metadata

Database
World problems
Type
(F) Fuzzy exceptional problems
Subject
  • Industry » Commodities
  • Content quality
    Presentable
     Presentable
    Language
    English
    Last update
    Oct 14, 2020