Form of Value

Also known as “value form”. The form in which the value of a commodity is expressed in relation to the natural form of the commodity. Use-value and value present the dual form of the commodity, i.e., the natural form or property and the social form or property. Commodities cannot manifest themselves directly in terms of value and magnitude of value, but must be expressed relatively in the exchange of two commodities through another commodity, which becomes a form of appearance of value.

The form of value of the commodity goes through four stages in the historical process of commodity exchange development: the first stage is the simple, individual or accidental form of value. “The whole mystery of the form of value lies hidden in this elementary form.” This form of value can be expressed by the equation: 2 sheep = 1 axe, or 1 quarter of wheat = 1 cow. This is the form of appearance of value in the embryonic stage of commodity exchange. The value of one commodity is expressed in exchange for another accidentally rather than in a fixed way. The second stage is the total or expanded form of value. For example, 2 sheep = 1 axe, 2 sheep = 1 quarter of wheat, or 2 sheep = 1 packet of salt, etc. This form of value reflects the expanding relations of commodity exchange under the conditions of the development of productive forces and the social division of labor. The third stage is the general form of value. The general equivalent, which expresses the value of all commodities, emerged as an intermediary of commodity exchange, thus overcoming the limitations and difficulties of direct barter. Its peculiarity is the expression in a simple form, in a single commodity, but also in a unified form, because each commodity expresses its value in the same commodity, thus presenting their universality. The fourth stage is the money form. In a long historical process, with the increase of the number of commodities and the development of commodity exchange, the function of general equivalent is gradually attached to the precious metals, namely, gold and silver, which were the most suitable materials of money, and money came into being. Since the emergence of money as a commodity that serves as a general equivalent, reflecting the social relations between commodity producers, all commodities are first exchanged with money, expressing their own value in money, and the money form of value has emerged.

On the basis of the scientific labor theory of value, Marx investigated the form of appearance of value in the commodity value relation, made a historical investigation of the development of the value form for the first time in the history of economics, and finally explained the origin of money and its essence.