| This question <464-2|60> overall <54|56> PowderNow: <27|100>. |
| Question 147: What is the progress of the Money form as compared to the General Equivalent form? |
| [55] PowderNow: Money form vs. General Equivalent form Marx's development of this idea begins with a simple expression of the equivalence of two commodities. If 20 yards of linen exchange for one coat, we have a relation which is the simple form of the expression of value. This simple form of value quickly develops into the expanded form of value, in which one commodity, the linen, is now equated to the whole range of other commodities, each of them expressing its value. 20 yards of linen= 1 coat or |
| = 10 pounds of tea or |
| = 40 lb. of coffee or |
| = etc. |
| But the expanded form is not closed because other commodities can be added to the group. The linen can develop into the general form of value, in which it serves as a measure of the value of all the other commodities. The linen has now become the general equivalent measure of value of all the other commodities. |
| This general equivalent brings us close to the money form of value, but any commodity could be the general equivalent. The full money form of value occurs when some commodity or some abstract unit of account becomes socially accepted as the general equivalent and is commonly used as the measure value of commodities. Marx thought the general equivalent must be a commodity, like gold, produced by human labor. Today we use an abstact unit of account, the dollar, which has a social meaning but no definite equivalent in terms of produced commodities. Money arises as an expression of the general exchangeability of commodities separate from any particular commodity. |
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