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Critical Analysis of Marx's "Das Kapital" Volume I.

Salomé Restrepo Maya & Julián David Salgado Vanegas

Universidad De Antioquia
Faculty of Economic Sciences
Professor: Juan Carlos Velázquez Torres
Advisor: Jeferson David Reyes Herera

Medellín,Antioquia,Colombia
October 25th, 2023
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Turn and examine a single commodity, by itself, as we will, yet in so far as it remains
an object of value, it seems impossible to grasp it. If, however, we bear in mind that
the value of commodities has a purely social reality, and that they acquire this reality
only in so far as they are expressions or embodiments of one identical social
substance, viz., human labour, it follows as a matter of course, that value can only
manifest itself in the social relation of commodity to commodity. (Marx, 1887, p. 33)

1. Passage analysis:

The selected fragment is an excerpt from "Capital", specifically found in chapter 1,

page 33. In this passage, fundamental concepts such as the analysis of the value of
commodities and the nature of the capitalist system are addressed.

One of the key concepts mentioned is that of commodities, which are described as
elements that express their value through exchange with other commodities. This is because,
since all commodities are products of undifferentiated human labor, we can compare them
with each other, i.e., they have something in common that allows their comparison and
subsequent exchange. This "something in common" is abstract human labor, which is the
underlying essence of all modern societies.

Therefore, we can conclude, as the author suggests, that value is not intrinsic to the
physical nature of commodities but derives from a process that is inherent to them, i.e.,
abstract human labor. The "materiality as values" of commodities manifests itself on the
physical plane through social interaction in the process of exchange. This explains why, in
order to understand value, we must examine the dynamics of exchange, which are
characteristic of a mercantile society.

To sum up, Marx's analysis stresses that the value of commodities is a social entity
that does not originate in their physical properties nor in their utility, but in abstract labor.
This value is manifested and crystallized in the social relations that develop during exchange.
Furthermore, Marx argues that the underlying social unit is human labor, which creates value
in the production process and becomes the predominant social unit in mercantile society.
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2. Comparison with the current reality:

To contrast and illustrate Marx's ideas with reality, we can examine the real estate
crisis of 2008. To understand this contrast, we must first provide a brief context of the events
that occurred during that time.

The 2008 real estate crisis originated from the indiscriminate granting of "junk loans"
(high-risk mortgage loans) by financial institutions to customers who were not creditworthy.
To compensate for the high risk associated with these financial products, banks charged very
high interest rates. This situation, along with a favorable economic climate and general
optimism in the real estate market, led to a surge in the acquisition of these "junk loans",
causing housing prices to inflate above their actual value and creating a real estate bubble.
The crisis reached a critical point when the demand for properties dramatically decreased,
resulting in a significant drop in housing prices, defaulted loans in banks, and a shortage of
liquidity in the financial system.

Now, with this context in mind, we can analyze the relationship to Marx's ideas as
follows:

First and foremost, it is important to remember that for Marx, price is the monetary
expression of value. This idea can be effectively illustrated in the case of a house whose price
is not inflated due to real estate speculation. However, in situations like the one in 2008, the
price becomes significantly disconnected from the actual value of the property (as a result of
speculative practices). Nonetheless, this disconnect is not permanent, as there eventually
comes a turning point where, in the absence of new demand, prices begin to fall in order to
facilitate sales (referred to as the bursting of the bubble). This implies that the price once
again approaches the real value of the property.

However, it is crucial to keep in mind that the relationship between price and value is
a complex issue in economics, and various factors such as supply and demand, consumer
perceptions, and market interventions can influence prices. Therefore, the idea that prices
always return to accurately reflect the intrinsic value of a good or service is a simplified
generalization that does not hold true in all cases.

3. Personal reflection:
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At this point, both members of this work consider that the discussion on the concept
of value continues to be a profound and ongoing debate among economic schools that have
been shaping and defining the concept of value for over 200 years. These schools have sought
to determine its origin and explain its development within mercantile society. Therefore, it
seems to us that Marx, like other significant authors and figures in the field of economics,
provides one possible answer among many in defining and establishing a theory of value that
aims to be definitive.

Furthermore, it should be acknowledged that it is challenging to observe Marx’s

theory clearly and concretely in real life, as the subjective nature of value is evident.
Additionally, Marx's concept of value often diverges significantly from the prices observed in
the market for various goods and services.

Bibliography:

Marx, K. (1887). Capital A Critique of Political Economy. Progress Publishers.

https://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-I.pdf