Money as a “Social Power”: Commodity Fetishism and Financialization

Abstract

Marx’s concepts of commodity and money fetishism explain the perception that money and commodities have “value,” presumably as part of their intrinsic properties. In fact, the exchange value of commodities and money results from living labor and the extraction of surplus value. With a historic review of the institutions for production, circulation, and credit, this appearance of capitalism can be explained. Further, the view that money is valuable in itself can lead to overexpansion of credit, stagnation, and instability. The attribution of “value” to living labor and the environment instead of money would result in different policies and priorities, and a more stable and equitable economy, rather than “financialization” and crises. JEL Classification: N23, G15, G23, B52