| This question <1737|1420> overall <951|954> MrPink: <549|1200>. graded A– |
| Question 378: Describe how and why commodity circulation contains the possibility of crisis. |
| [952] MrPink: Commodity circulation and crisis. Since commodities are produced for the exchange of money there is an incentive to produce more. This incentive to produce commodities can encourage more people to participate in the output of labor. One possibility is that as technology increases and efficiencies are discovered, those producers who do not utilize the same technology have to use more labor than their competitors. This can decrease the value of their labor, or create a waste of labor. At the same time the increased production can create a surplus of exchangeable commodities (for circulation) in the marketplace. This can create a lack of demand. This is a possible crisis. |
| When talking about unity I believe that Marx relays that this can be avoided if the producers coordinate production. |
| Hans: Some of your examples are situations in which prices change unexpectedly. This alone does not create crises. A crisis would be a situation in which such discrepancies accumulate until they bring the system down. Your first example is of this type: the tendency of capitalism to produce more than is demanded can create crises. (A more formal definition of crisis is in my [957]: production and consumption belong together, but in capitalism they may be separated too much). |
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