ECON 103 Lecture 3: Capitalism Notes

• School: UMASS-Amherst
• Department: Economics
• Course: ECON 103
• Professor: Gerald Friedman

Document Summary

Either consume or trade for equal amounts: ex: someone grows carrots to they can either eat them or trade them for an equivalent amount of grapes, adam smith circuit of production. C-c1 (commodity-equivalent exchange) i) this is what"s described above, growing something and trading it for something equivalent. C- m (money)- c1 (same thing but you"re exchanging it for money in between) You produce to consume to consume for nal consumption in this old way of thinking: this idea of producing for nal consumption is not true today in modern capitalism. Now you are producing for pro ts i) doing it in excess: m (money) - c (commodity) - c1 (exchange equivalence) - m1 (more money) This is circuite of production for capitalism and slave labor. Capitalism: m- c (in capitalism this is labor time)- c1- m1. If you are not the capitalist you are selling your labor time to make money.