The Market as a Social Institution

The Market as a Social Institution


How is capitalism a social system pushed in the alley of commodification?


When the labovr itself becomes a commodity and sold for wage by labourer it brings in the capitalism. Exchange of labour for wage gives rise to two basic classes i.e. capitalist and worker. The former owns the means of production (i.e. factories, capital, land etc) and the latter sells his labour to the former (i.e. capitalist). The former class thus, pays less than what value produced by the latter and thus, illigally benefited. In the changed state of equal distribution of income and wealth as per stake of labour, capital, enterprise and skill besides other inputs, society is never divided in the classes (i.e. capitalist and that of the proletariat). Karl Marx, the staunch critic of capitalism also accepts this position as one of the social system necessary for the growth of the national economy. He writes— "All economic systems are also social systems and each mode of production consists of particular relations of production which in turn give rise to a specific class structure". He emphasised upon economy formed of relations between people who are connected to one another through the process of production and it should not be consisting of commodities (i.e. goods circulating in the market). Thus, he was against commodification and assumed it the main factor engendering capitalism and division of society in two classes.

Conclusion : On the basis of above points, it can be stated that capitalism is also a social system but presently in its deteriorating mode as capital shifted to the hands of a few individuals while majority of people pass their life in pains inspite of their fair share of labour in the process of production. As it is social injustice, class-conflicts, strikes and other subversive activities come into play in long terms.

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