We shall examine the course of development which has brought this about.
2. Commodities and Capital.
The beginnings of capitalist society are to be found in agriculture and handicraft.
Originally the agricultural family satisfied all of its own needs. It produced all the food, clothing and tools for its own members and built its own house. It produced as much as it needed and no more. With the advance in the methods of farming, however, it came about that more was produced than enough to satisfy the immediate needs of the family. This placed the family in a position to purchase weapons, tools or articles of luxury, which it could not produce itself. Through this exchange products became commodities.
A commodity is a product designed for exchange. The wheat the farmer produces for his own consumption is not a commodity; the wheat he produces to sell is a commodity. Selling is nothing more nor less than trading a commodity for another which is acceptable to all, gold, for example.
Now the craftsman working independently is a producer of commodities from the beginning. He does not sell merely his surplus products; production for sale is his main purpose.
Exchange of commodities implies two conditions: first, a division of social labor; second, private ownership of the things exchanged. The more this division develops and the more private property increases in extent and importance, the
