This question <24|24> overall <23|25> James: <645-5|46>. graded A–

Question 50: Why does Marx write in 127:1 “the socially accepted exchange-values,” instead of simply “the exchange-values”?

[24] James: Exchange values are intertwined.   Marx explains that a commodity is not always traded at the set exchange rate. In fact there has to be a dichotomy between the seller, the buyer, and the buyer of the buyer. He understands the rate of exchange is not set by the seller of wheat but by the whole community of sellers and buyers.

Marx cites the example of the wheat, shoe polish, silk, and gold. The wheat must sell at a level to shoe polish that is different than the level wheat would sell to gold. But they must be intertwined. Shoe polish must then sell to gold at roughly the same level of wheat minus the difference between the wheat to polish rate. Marx identifies this as must having equal magnitude in price. Otherwise there would be a breakdown of the market and a commodity would flood the market if undervalued, or scarcity if overvalued. In short there must be a relationship between commodities and their “socially acceptable exchange values”.

Hans: I don't think this is what Marx meant with this formulation, but it is a reasonable guess.

	Students enrolled for Econ 5080 in 2009fa are invited to give feedback to the above message Pseudonym:      UofU ID:   Text: