Nostr

Comparing W-G-W (Socialism) vs. G-W-G (Capitalism):

1. W-G-W in Socialism (Commodity-Money-Commodity):

• Goal:

Money (G) is used as a medium to facilitate the exchange of commodities (W) to meet human needs.

• Process:

• A worker produces a commodity (W).

• This commodity is exchanged for money (G).

• The money is then used to purchase another commodity (W) for consumption or necessity.

• Focus:

• Labor is valued for its contribution to societal needs.

• Money is not accumulated but serves as a tool for equitable distribution.

• Production is need-driven, not profit-driven.

• Outcome:

• The cycle ensures resources and goods circulate to fulfill the needs of all individuals.

2. G-W-G in Capitalism (Money-Commodity-Money):

• Goal:

The primary purpose is to use money (G) to purchase commodities (W) and sell them for more money (G’)—creating surplus value (profit).

• Process:

• A capitalist invests money (G) to acquire commodities (e.g., labor, raw materials).

• These commodities are used to produce goods (W), which are sold.

• The sale generates more money (G’), which is reinvested to maximize profit.

• Focus:

• Profit is the driving force, with production oriented toward maximizing capital.

• Labor is exploited to extract surplus value.

• Outcome:

• The system perpetuates inequality as wealth accumulates in the hands of a capitalist minority.