Subsistence farming and the production of commodities

An important place in economic theory given to the analysis of forms of organization of production. In general terms, under the form of production refers to the type of organization of economic activities of the people providing the actual functioning of the economy. In other words, the form of production - is the mode of existence of the economic system.

The economic literature has traditionally distinguished as two major forms: subsistence farming and the production of commodities. Natural and commodity production are distinguished primarily by the following features: the development or lack of development of the social division of labor, closed or open economy, the economic form of manufactured product, the method of resolving contradictions between production and consumption.

Subsistence farming - is a way of organizing economic activity, in which production is aimed directly at meeting the needs of their own products, ie takes place on-farm consumption.

A society in which it prevails, consists of a mass of business units (families, communities, estates). Each unit is based on its own production resources, and self-sustaining itself with all the necessities of life. She does all kinds of chores, ranging from obtaining different types of raw materials and ending with the final preparations for their consumption.

Subsistence economy characterized by the following main features:

· Universal manual labor prevails, based on the primitive technological base (hoe, shovel, rake, etc.) and eliminates its division into separate species;

· Closed (autarkic economic form), lack of communication with other economic units (each unit is based on its own resources and provide themselves with all the necessities of life);

· Manufactured product does not take the form of commodities and forms the foundation for the means of subsistence of the manufacturer;

· Availability of direct economic links between production and consumption: they evolve under a "production - distribution - consumption", ie established products distributed among the participants of production and, bypassing the stage of exchange used for personal and productive consumption;

· Conservatism, traditionalism, the limited production and consumption relatively constant proportion of the scale of production and industry that contribute to the slow pace of economic development.

The main drawback of subsistence is that it does not allow to achieve high productivity, provides satisfaction minor volume and uniform in the qualitative composition needs.

The development of production factors has led to a deepening of the social division of labor, productivity. This was an objective reason for the switch from subsistence to commercial. If subsistence farming prevailed in the pre-industrial stage of production, the industrial stage to become the dominant commodity form of economic organization.

Commercial production - is a form of social organization of production, in which the economic relations between the people manifested through the sale of the products of their labor on the market.

Commercial production began in the period of expansion of primitive society, when there was the first great social division of labor, that is, allocation of pastoral tribes, or separation from livestock farming.

Commodity production is being further developed as a result of the second great social division of labor, ie resulting from the separation of crafts from agriculture. Isolation craft helped to further improve the tools.

For your information. The invention loom, bellows, a potter's wheel, etc. significantly increased the productivity of labor. Artisans, in turn, began to offer and better tools for farmers. This facilitated the work, increase its efficiency and contributed to the creation of a stable supply (quantity) of the surplus product. Therefore, barter became more and more permanent.

Further expansion of the exchange has led to the emergence of intermediary trade and the allocation of merchants. This is the third social division of labor. It perpetuated the emerging natural exchange between separate business entities, facilitated distribution of surplus production (surplus) as well as the supply of subsistence individual handicrafts.

In addition, the trade allows a closed economic units to see the latest products, reinforcing the idea of ​​the public about the advantages of a narrow specialization.

"Commodity production is a system of farming, when the products are produced by separate, distinct manufacturers, each specializing in the development of a single product, so that to meet the needs of society requires buying and selling of products (by virtue of becoming commodities) in

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