Social production in its development has grown from lower to higher forms, from less developed to more develop. Past millennia of human society know two forms - natural and commodity.
Subsistence production - is a type of economy in which the production is directly aimed at meeting their needs of producers and their families.
In subsistence production occur following characteristic features of the economy:
- The product of labor does not accept the commodity form;
- The products of labor are vital resources of the fund pro driver and his family;
- In the life fund includes commodities for the current needs and food supplies, as well as a means for making consumer goods.
Subsistence farming was based on manual labor, and universal in its purest form, there primitive people who did not know of the social division of labor and do not share with each other their products.
The economic basis of subsistence - agriculture (mainly agriculture) and domestic industry.
Domestic industry - a production in the peasant economy finished products intended for personal consumption of raw materials produced in the same household
Craft - small-scale production, based on the manufacturers own labor and hand tools. Products manufactured according to customer requirements.
Manufacturing - historically the first form of human economic activity. It created a direct link between production and consumption, passing into circulation (market).
With the development of human society deepened the social division of labor.
In the history of the social division of labor are three stages:
- Department of Livestock farming - it created the conditions for the exchange of the tribes;
- Craft separated from agriculture, which meant the emergence of commodity production;
- Separation of trade from the production and release of the merchants, which led to the fact that market linkages have become regular.
Commodity production - a form of social economy, in which the products are not made for their own consumption and for sharing ny order of sale.
Necessary condition of the commodity production - the social division of labor.
The main features of commodity production:
- The social division of labor. The production consists of heterogeneous GOVERNMENTAL business units, each of which is specialized in the manufacture of certain products.
- Private ownership of the means of production.
- The exchange of goods as a form of economic relations between producers. In the social division of labor, each pro ducer specializes in certain products one who creates for other members of society. However, he does need to work products of other manufacturers. Therefore, the only form of economic GOVERNMENTAL communication between manufacturers is the exchange of goods.
- The spontaneous nature of commodity production. Private property crushes the economy into many separate, stand-alone businesses and inevitably production and exchange.
There are two types of commodity production:
- Simple - the products are manufactured for the exchange independent small producers - farmers and artisans;
- Capitalist - is based on the use of hired workers.
Product - a product of labor, the ability to meet some human need and is designed for the exchange.
From this definition it follows that:
- is the only product that satisfies some human need;
- product is the fact that hardly tried out (for example, berries in the forest for the collector is not a commodity, but they may become after labor expended for collection);
- product is what is for sale.
Any product has two properties: the ability to meet some human need or use value (utility), and the ability to exchange for other goods, or exchange value. Each product has a use value. It meets the needs of not only the manufacturer, but also other people, that are a social use-value. The use-value of goods has certain properties:
- it does not depend on the amount of labor expended in the production of the thing;
- use value as it exists in every human society, in any historical period.
Exchange value - the ability of goods in a certain proportion to exchange for other goods.
The common property of all goods - that expended in their production of human labor, or social activities. That is, as the products of social labor are homogeneous products. Social labor embodied in a commodity is the price of the goods.