fungible item produced to satisfy wants or needs

In economics, a commodity is a marketable item produced to satisfy wants or needs. Often the item is fungible. Economic commodities comprise goods and services.

The essence of capitalism is to turn nature into commodities and commodities into capital. The live green earth is transformed into dead gold bricks, with luxury items for the few and toxic slag heaps for the many. ~ Michael Parenti


  • Labor is a commodity, like any other, and its price is therefore determined by exactly the same laws that apply to other commodities. In a regime of big industry or of free competition – as we shall see, the two come to the same thing – the price of a commodity is, on the average, always equal to its cost of production. Hence, the price of labor is also equal to the cost of production of labor. But, the costs of production of labor consist of precisely the quantity of means of subsistence necessary to enable the worker to continue working, and to prevent the working class from dying out. The worker will therefore get no more for his labor than is necessary for this purpose; the price of labor, or the wage, will, in other words, be the lowest, the minimum, required for the maintenance of life.
  • The importance of empire became especially obvious to the self-styled 'have not' powers when they adopted rearmament as a tool of economic recovery. For rearmament in the 1930s, if one wished to possess the most up-to-date weaponry, demanded copious supplies of a variety of crucial raw materials (see below). Neither Italy, Germany nor Japan had these commodities within their own borders other than in trivial quantities. By contrast, the lion's share of the world's accessible supplies lay within the borders of one of four rival powers: the British Empire, the French Empire, the Soviet Union and the United States. Thus, no country could aspire to military parity with these powers without substantial imports of commodities whose supply they all but monopolized. For three reasons, it was not possible for the 'have nots' to rely on free trade to acquire them. First, free trade had been significantly reduced by the mid-1930s, thanks to the imposition of protectionist tariffs. Second, Italy, Germany and Japan lacked adequate international reserves to pay for the imports they required. Third, even if their central banks' reserves had been overflowing with gold, there was a risk that imports might be interdicted by rival powers before rearmament was complete. There was therefore a compelling logic behind territorial expansion, as Hitler made clear in his memorandum of August-September 1936, which outlined a new Four-Year Plan for the German economy.
    • Niall Ferguson, The War of the World: Twentieth-Century Conflict and the Descent of the West (2006), p. 280
  • The exchange relationships we choose determine whether we share them as a common gift or sell them as a private commodity. A great deal rests on that choice. For the greater part of human history, and in places in the world today, common resources were the rule. But some invented a different story, a social construct in which everything is a commodity to be bought and sold. The market economy story has spread like wildfire, with uneven results for human well-being and devastation for the natural world. But it is just a story we have told ourselves and we are free to tell another, to reclaim the old one. One of these stories sustains the living systems on which we depend. One of these stories opens the way to living in gratitude and amazement at the richness and generosity of the world. One of these stories asks us to bestow our own gifts in kind, to celebrate our kinship with the world. We can choose. If all the world is a commodity, how poor we grow. When all the world is a gift in motion, how wealthy we become.
  • The whole mystery of commodities, all the magic and necromancy that surrounds the products of labor as long as they take the form of commodities, vanishes therefore, so soon as we come to other forms of production.
  • The commodity-form, and the value-relation of the products of labour within which it appears, have absolutely no connection with the physical nature of the commodity and the material relations arising out of this. It is nothing but the definite social relation between men themselves which assumes here, for them, the fantastic form of a relation between things. In order, therefore, to find an analogy we must take flight into the misty realm of religion. There the products of the human brain appear as autonomous figures endowed with a life of their own, which enter into relations both with each other and with the human race. So it is in the world of commodities with the products of men's hands. I call this the fetishism which attaches itself to the products of labour as soon as they are produced as commodities, and is therefore inseparable from the production of commodities.
  • The essence of capitalism is to turn nature into commodities and commodities into capital. The live green earth is transformed into dead gold bricks, with luxury items for the few and toxic slag heaps for the many. The glittering mansion overlooks a vast sprawl of shanty towns, wherein a desperate, demoralized humanity is kept in line with drugs, television, and armed force.

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