Critically discuss the notion of labour as a “fictitious commodity”. Provide examples where necessary.

What also characterizes market society is the emergence of the concept of “fictitious commodities”. Fictitious commodities refer to labor, land, and money (Polanyi 72). “fictitious” implies that they are actually not commodities (Polanyi 72). They are turned into commodities for the effective operation of market society (Polanyi 72). In market society, everything is provided as a commodity. As the major elements of industry, labor, land , and money need to be provided for maintaining productivity and they can only be provided when they are on the market for sale (Polanyi 72). Differently, “Under the feudalism and the gild system land and labor formed part of the social organization itself ” (Polanyi 69). Land were crucial for feudal order, status and function of which “were determined by legal and customary

Marx viewed the ‘commodity’ as the most elementary form of modern wealth. The essence of the commodity is the

Material and ideological conditions are present in the modern society and those before, each influencing the other. Material conditions determine an individual’s way of life, the wages they collect, and how such earnings determine social class. It is through ideological conditions that ideas derive, which give birth to the ways civilization behaves and operates. This paper will look at a series of theoretical works by Karl Polanyi, James Rinehart, Max Weber, and Robert Heilbroner, deliberating the market society and its progression in relation to the material and ideological conditions that are constantly transforming throughout societies pivotal points in history. Each theorist offers excellent insight into the modes of production and

Karl Polanyi rejects utilitarianism making a base of an economics, while he estimates highly Jeremy Bentham’s thought; that is, poor relief in the Panopticon plan as a factor of a kind of socialism. The Panopticon seems to same as the function of a central bank asked for the double movement in the monetary realm by Polanyi. Therefore, Polanyi shares the need for social organization restricting the self-regulating market with Bentham; moreover, both thinkers envisage the creation of a society which treats labour and money without the

Man no longer exercises his essence as a species-being in productive labour for the good of others, but on the contrary, he becomes detached from his essence and the product of his labour is abstracted as a means to produce for the sake of capital. In this sense man becomes reduced to nothing but a machine; the more capital the product of his labour acquires, the more the worker will be encouraged to produce through the influence of wages. The appeal of this profit for the worker sustains his alienated state by further sacrificing his ‘body and spirit’ for the sake of his wages;

Marx’s analysis of capitalism begins with an investigation of the commodity because the wealth of capitalist nations is essentially “an immense collection of commodities” (Chapter 1). Marx differentiates between the use-value and the exchange-value of any given commodity. The use-value of a commodity refers to its qualitative ability to satisfy a human need, while its exchange-value is the “quantitative relation… in which use-values of one kind exchange for use-values of another kind” (Chapter 1). Therefore, exchange-value is not an intrinsic quality of a commodity; it is only discovered in comparing a fixed quantity of commodity A to a fixed quantity B. Since differing quantities of these two commodities appear to have the same value,

We currently live in a market society that is completely different from past societies. In market society, the society is a system of self-regulating market as a whole (Polanyi 43). People are needed to act and think in particular ways for the market society to function (Polanyi 68). For instance, people in market society believe that economic relations are more needed than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society “the great transformation”. My thesis is the change to market society is a fundamental transformation due to market society being characterized by self-regulation, fictitious commodities and an emphasis on individuals, which are considerably different from past societies. A number of the differences that take place under the workplace in the system of market society will also be shown. Furthermore, the thoughts that people have about the world in market society will be explained by pointing out the association between the “spirit of capitalism” and the “protestant work ethic”. Lastly, the reasons why these ideological conditions are essential to the emergence of market society will be provided.

     In capitalism the worker is a commodity in so as to produce the products needed for the market. Each individual does what they are best at producing and if everyone does this then each person’s needs are taken care of. When each person is working they are paid money for their labor. With this money they can buy goods, which can fulfill their own desires, and so the trading of money for goods can take place in a capitalist market driving the economy forward (Smith 158).

This concept criticizes the market fundamentalism. Markets will always be controlled by norms, society, culture and morality. Polanyi means the idea of a self-regulating economy is a myth and the free market is a political creation. The state plays a huge role in managing markets such as money, land and labor. John M. Keynes agreed with Polanyi, it doesn’t exist some “invisible hand”. He argued for governmental regulation and that the state should be in the economy with the companies. The state should boost and help the economy when it’s bad and help the struggling

is when the division of labour has been once thoroughly established, it is but a small part of a man’s want which the produce of his own labour can supply. He supplies the far greater part of them by exchanging that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other’s men’s labour as he has occasion for. Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society (Smith, 2003, p. 37).

The pivotal second chapter of Adam Smith's Wealth of Nations, "Of the Principle which gives occasion to the Division of Labour," opens with the oft-cited claim that the foundation of modern political economy is the human "propensity to truck, barter, and exchange one thing for another."1 This formulation plays both an analytical and normative role. It offers an anthropological microfoundation for Smith's understanding of how modern commercial societies function as social organizations, which, in turn, provide a venue for the expression and operation of these human proclivities. Together with the equally famous concept of the invisible hand, this sentence defines the central axis of a new science of political economy

On the contrary, the only jobs available are the ones that convert wages into capital. Essentially, giving people wages to buy more materials is the main goal of the market. Another key component that aids in maintaining the market economy are the three fictitious commodities which are labour, land and money. Capitalism grew as labour was turned into wages, land into rent, and money into interest. Land was owned by

Moreover, because the aim of production is profit rather than human need, the products of past labor--the machinery and materials, controlled by the capitalists--completely dominate living labor. Workers are literally slaves to the machine and the work process. It controls them, rather than

price mechanisms that we have today, like the spice and silk trade routes, but they were peripheral. These markets were usually only used for luxury goods or things that could not be gotten from within the community and society could operate without them (Flomenhof 99). So without principals of supply and demand to dictate price points of goods, economic stability and unity was sustained through the three principals: reciprocity, redistribution, and householding. In his book he explains these principles based off the exchange systems in the Trobriand Islands of Western Melanesia (Polanyi 47). Reciprocity, Polanyi explains, was a system in which the exchange of goods is based on the social conventional that if you give to someone else they will eventually give back, thus the exchange is reciprocal (45). This required a certain degree of economic symmetry which Polanyi explains in terms of husband wife relations. There was a division of labour between the husband and wife in Trobriand Islands, “the male provides for his sister and family by delivering the finest specimen of his crop” (Polanyi, 48) thus in exchange he is rewarded by his wife in her support of the home and child rearing. In this exchange there is equal value placed on both relationships and they work in symmetry. On a macro level reciprocity works in that a community would work to produce something to then be gifted to other groups (Polanyi 55). In order for this to properly function however the principle of

A commodity is a raw material or primary agricultural product that can be bought and sold. The market treats it as equipment or nearly so with no regard to who produced it. The original producer does not make the “big” money from the good that has become a commodity demanded by consumers. A commodity’s supply and demand is part of one universal market like corn, or wheat. A stereo is something that would not be considered a commodity. Other things are important about a stereo not that it is just a stereo but what brand and quality is in consideration when purchasing a stereo. Demand for one type might be much larger than the demand for another. This is not the case with commodities; they lose differentiation across their supply base. An