The concept of fictitious commodities (or false commodities) originated in
Karl Polanyi
Karl Paul Polanyi (; ; 25 October 1886 – 23 April 1964)''Encyclopædia Britannica'' (Chicago: Encyclopædia Britannica Inc. 2003) vol 9. p. 554 was an Austro-Hungarian economic anthropologist, economic sociologist, and politician, best kno ...
's 1944 book ''
The Great Transformation'' and refers to anything treated as market commodity that is not created for the market, specifically
land
Land, also known as dry land, ground, or earth, is the solid terrestrial surface of Earth not submerged by the ocean or another body of water. It makes up 29.2% of Earth's surface and includes all continents and islands. Earth's land sur ...
,
labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the labour ...
, and
money
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: m ...
.
Critique of commodification
For Polanyi, the effort by
classical and
neoclassical economics
Neoclassical economics is an approach to economics in which the production, consumption, and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a go ...
to make society subject to the
free market
In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...
was a utopian project and, as Polanyi scholars
Fred Block and
Margaret Somers claim, "When these public goods and social necessities (what Polanyi calls "fictitious commodities") are treated as if they are commodities produced for sale on the market, rather than protected rights, our social world is endangered and major crises will ensue."
Polanyi's insight follows the
Marxian notions of "
commodification
Commodification is the process of transforming inalienable, free, or gifted things (objects, services, ideas, nature, personal information, people or animals) into commodities, or objects for sale.For animals"United Nations Commodity Trade Stati ...
" and "
Commodity fetishism
In Marxist philosophy, commodity fetishism is the perception of the economic relationships of production and exchange as relationships among things (money and merchandise) rather than among people. As a form of Reification (Marxism), reificati ...
."
Fetishism
A fetish is an object believed to have supernatural powers, or in particular, a human-made object that has power over others. Essentially, fetishism is the attribution of inherent non-material value, or powers, to an object. Talismans and amulet ...
in
anthropology
Anthropology is the scientific study of humanity, concerned with human behavior, human biology, cultures, society, societies, and linguistics, in both the present and past, including archaic humans. Social anthropology studies patterns of behav ...
refers to the primitive belief that godly powers can inhere in inanimate things, e.g., in
totem
A totem (from or ''doodem'') is a spirit being, sacred object, or symbol that serves as an emblem of a group of people, such as a family, clan, lineage (anthropology), lineage, or tribe, such as in the Anishinaabe clan system.
While the word ...
s.
Marx
Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...
uses this concept to describe "commodity fetishism." For Marx, "a commodity appears at first sight an extremely obvious, trivial thing. But its analysis brings out that it is a very strange thing, abounding in metaphysical subtleties and theological niceties." And what is a social relation between people, between "capitalists" and "exploited laborers," instead assumes "the fantastic form of a relation between things."
[
David Bollier wrote that, according to Polanyi, "prior to the rise of ''the market'' as an ordering principle for society, politics, religion and social norms were the prevailing forces of governance. Land, labor and money itself were not regarded chiefly as commodities to be bought and sold. They were ''embedded'' in social relationships, and subject to the moral consideration, religious beliefs and community management."] As Polanyi points out, these are actually “fictitious commodities” in the sense that they are not truly discrete “products.” Land and human beings have their own sovereign dynamics apart from their treatment as market commodities. Treating them as "mere commodities" creates "dangerous pressures" — as when too much carbon is emitted into the atmosphere or people lose their jobs because they are “redundant.”[
]
See also
*Embeddedness
In economics and economic sociology, embeddedness refers to the degree to which economic activity is constrained by non-economic institutions. The term was created by economic historian Karl Polanyi as part of his substantivist approach. Polanyi ...
* Economistic fallacy
* Labour is not a commodity
References
Commodities
Commodities used as an investment
Business terms
Economic anthropology
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